Let’s say there was hanky-panky involved, let’s say somebody hacked the system or stole the electronic currency. At this time, digital currency flies beneath the radar as it is not recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital currency have value? Difficult to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it’s worth what it signifies if we all agree to that and have trust in the currency. What is the difference, it’s a matter of trust right?
Alright so, let’s say that the authorities, FBI, or another branch of government interferes and files charges – should they file criminal charges that someone defrauded somebody else then how much defrauding was demanded? If the government enforcement and justice department put a dollar amount number to this, they’re inadvertently agreeing that the electronic money is actual, and it’s a value, consequently, acknowledging it. If they don’t get involved, then some fraud that may or may not have happened sets the whole notion back a long way, and the media will continue to push down the trust of all electronic or crypto-currencies.
So, it is a catch-22 for your authorities, regulators, and enforcement people, and they cannot look the other way or deny that this trend any longer. Is it time for regulations. Well, I personally despise regulation, but is not this how it usually begins. Once it is regulated credibility is given to the concept, but his digital money theory may also undermine the whole One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for this as well. Can the global economy manage that level of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new change in how we see monetary value, riches, online transactions and how the actual world will mind-meld into our future blurred reality. I just don’t see a lot of folks believing here, but everyone should, one misstep and we could all be in a world of hurt – all of humankind that is. Please think about all this and think on it. Well, what do you think about that so far? There is a great deal in the body of information surrounding crypto genius australia. It is really comparable to other related issues that are important to people. Continue reading and you will see what we mean about crucial nuances you need to know about. Try evaluating your own unique requirements which will help you further refine what may be necessary. We will tie everything together plus give you a hint of other necessary information.
Bitcoin is farther away from being The numeraire; not just is it a number, much as Fiat… but its worth is quantified in Fiat! Even though Bitcoin becomes internationally accepted as a medium of trade, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is exceptional in preserving worth for centuries. Nothing else in reach of humanity has this exceptional combination of attributes.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. Its advantages will also be questionable; the intent is to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; currently, a few central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? What this actually means is banks recognize that they could exchange Fiat for Bitcoins… and also to really buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small change to the Fiat printers; it is about a week’s worth of printing from the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what could the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come to the main dilemma; why search To get a ‘new money’ if we already have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The answer isn’t in a new sort of money, but at a new social arrangement, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A world of independence not tyranny. Once this is achieved, Gold will restart its early and vital role as honest money… and not a minute before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he has intimate experience with financial destruction.
As an engineer and engineer, he Ran a successful family business in Canada for years, in its peak using over 100 workers, until economic upheaval destroyed the sustainability of North American production. Driven out of business, he decided to study economics… to discover the cause of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ awarded to miners following their successful development of this new block is cut in half. Thus, this phenomenon will reduce the given ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have an enduring effect and it is not yet known if it’s good or bad for ‘Bitcoin’.