Let’s say there was hanky-panky involved, let’s say somebody hacked the system or stole the electronic currency. Right now, digital money flies under the radar since it is not recognized even with all the newest Too Big To Fail regulations on banks, etc.. How can a digital money have value? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it’s worth what it represents if most of us agree to that and have trust in the money. What’s the difference, it’s a matter of confidence right?
Alright so, let’s say that the authorities, FBI, or another branch of government complies and documents charges – should they record criminal charges that someone defrauded somebody else then how much defrauding was involved? If the government enforcement and justice department put a dollar sum number to this, they’re inadvertently agreeing that the digital money is actual, and it has a value, consequently, acknowledging it. When they don’t get involved, then some fraud which might or might not have happened sets the whole concept back a long way, and the press will continue to push down the confidence of all digital or crypto-currencies.
So, it’s a catch-22 for the government, regulators, and enforcement people, and they cannot look another way or deny this trend no more. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his digital money concept may also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for that as well. Can the international economy manage that degree of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, riches, online transactions and how the actual world will mind-meld to our future blurred reality. I just don’t see a lot of folks thinking here, but everybody needs to, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please think about all this and consider it. Now that you have read through this far, has that stirred your views in any way? You may already have thought that crypto genius erfahrungen is a vast field with much to find out. Yes, it is correct that so many find this and other similar subjects to be of fantastic value. You should be careful about making too many presumptions until the big picture is a lot more clear. If you are uncertain about what is needed for you, then just take a better look at your particular situation. You have a sound base of a few important points, and we will make that much more powerful for you as follows.
Bitcoin is farther away from being The numeraire; not only is it simply a number, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of trade, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is unique in storing worth for centuries. Nothing else in touch of humankind has this exceptional combination of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being cash. 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 gets harder and harder to fix, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the legitimate value of this Bitcoin, no? What this actually means is banks recognize that they might exchange Fiat to get Bitcoins… and to really buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it’s roughly a week’s worth of printing by 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; a perfect corner. If there are no Bitcoins in flow, how on Earth can they be applied as a medium of trade? And, what would the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Combine the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to lose value, just as Fiat supposedly loses value through ‘over-printing’…
We come into the main issue; why hunt For a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The answer is not in a new form of cash, 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 liberty not tyranny. Once this is achieved, Gold will resume its ancient and critical role as fair money… and not a minute 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 consequent Hungarian hyperinflation, thus he has intimate encounter with financial destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for decades, in its peak employing over 100 workers, until economical upheaval ruined the sustainability of North American production. Driven from business, he decided to study economics… to detect 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 awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have an enduring impact and it isn’t yet known if it is good or bad to ‘Bitcoin’.