What do you say to this? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were ideal? Do they get the last laugh, or is that just an expected evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I had.
Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the digital money. Right now, digital money flies under the radar as it isn’t recognized even with all of the new 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 this and have confidence in the currency. What’s the difference, it is a matter of trust right?
Alright so, let us say that the authorities, FBI, or another branch of government complies and files charges – if they record criminal charges that somebody defrauded someone else then how much defrauding was demanded? If the government law and justice department put a dollar sum number to this, they are inadvertently agreeing that the electronic money is actual, and it’s a value, consequently, acknowledging it. When they don’t get involved, then some fraud that may or may not have happened sets the whole notion back a ways, and the press will continue to push down the confidence of all digital 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 no more. Could it be time for regulations. Well, I personally hate regulation, but is not this how it usually starts. Once it is controlled credibility is given to the concept, but his digital money theory may also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the global economy handle that degree of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new shift in how we see monetary price, riches, online transactions and how the actual world will mind-meld into our prospective blurred reality. I just don’t see a lot of folks thinking here, but everybody should, one misstep and we can all be in a world of hurt – all of humankind that is. Please think about all this and consider it. What have just talked about is crucial for your knowledge about crypto genius australia, but there is a lot more to think about. But is that all there is? Not by a long shot – you actually can expand your knowledge greatly, and we can help you. It is difficult to determine all the different means by which they can serve you. Do take the time and make the attempt to discover the big picture of this. The rest of the document will provide you with a few more essential factors to bear in mind.
Bitcoin is further away from being The numeraire; not just is it a few, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of trade, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is unique in storing value for thousands of years. Nothing else in touch of humanity has this unique combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to fix, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, a few central banks have announced that Bitcoins might 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 legitimate value of the Bitcoin, no? This really means is banks recognize that they might exchange Fiat to get Bitcoins… and 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 practical purpose could they serve?
There would be no Bitcoins left in Circulation; a perfect corner. If there aren’t any Bitcoins in flow, 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 into… 52 million? To 104 million? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat supposedly loses value through ‘over-printing’…
We come to the main issue; why hunt For a ‘new money’ if we already have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The answer is not in a new sort of cash, but at a new social structure, one without Fiat, without 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 resume its early and vital role as honest money… and not a moment before.
Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he has intimate encounter with financial destruction.
As an engineer and entrepreneur, he Ran a thriving family business in Canada for years, in its peak using over 100 workers, until economical upheaval destroyed the sustainability of North American production. Driven from business, he chose to study economics… to detect the cause of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have an enduring effect and it isn’t yet known whether it’s good or bad to ‘Bitcoin’.