As an engineer and entrepreneur, he Ran a successful family business in Canada for decades, in its peak using over 100 workers, until economic upheaval ruined the profitability of North American production. Driven from business, he chose to study economics… to discover the cause of the unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have an enduring impact and it isn’t yet known if it’s good or bad for ‘Bitcoin’.
Alright so, let’s say that the regulators, FBI, or another branch of government complies and files charges – if they file criminal charges that someone defrauded somebody else then just how much defrauding was involved? If the government law and justice department put a dollar amount number to this, they are inadvertently agreeing that the electronic currency is actual, and it has a value, consequently, acknowledging it. If they don’t get involved, then some fraud which might or might not have occurred sets the whole notion back a ways, and the media will continue to push down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for your authorities, authorities, and enforcement folks, and they cannot look the other way or deny this trend any longer. Is it time for regulations. Well, I personally hate regulation, but is not this how it usually begins. Once it’s regulated credibility is given to the notion, but his electronic money concept could also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for that as well. Can the global market manage that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new change in how we see monetary value, wealth, online transactions and how the actual world will mind-meld to our prospective blurred reality. I simply don’t see a lot of people believing here, but everybody should, one misstep and we can all be in a world of hurt – all of humanity that is. Please think about all of this and think on it. Hopefully it is very clear that crypto genius software is one thing that can have quite an effect on you and others, too. There are so many scenarios and variations – twists and turns, that maybe you see how difficult it can be to cover all bases. There is a lot, we know, and that is the reason why we are taking a very short break to say a few words about this. In light of all that is offered, and there is a lot, then this is a perfect time to be reading this. As usual, we typically save the very best for last.
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 if Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in touch of humanity has this exceptional combination of attributes.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being money. Its advantages are also questionable; the aim is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the legitimate value of the Bitcoin, no? This actually means is banks recognize that they could trade Fiat for Bitcoins… and also to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest change to the Fiat printers; it is roughly a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left Flow; an ideal corner. If there are no 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 destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Combine the Fiat print parade? But , by the quantity theory of money, Bitcoin would start to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…
We come into the main dilemma; why hunt For a ‘new money’ if we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer is not in a new form of money, but at a new social structure, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is accomplished, Gold will resume its ancient and vital role as fair money… and not a moment before.
Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he’s intimate experience with financial destruction.