What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Do they get the last laugh, or is that only an expected evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I’d.
Let’s say there was hanky-panky involved, let us say somebody hacked the system or stole the digital money. Right now, digital currency flies beneath the radar since it isn’t recognized even with all the newest Too Big To Fail regulations on banks, etc.. How can a digital currency have worth? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it is worth what it signifies if we all agree to this and have trust in the money. What’s the difference, it’s a matter of confidence right?
Alright so, let’s say that the regulators, FBI, or another branch of government interferes and files charges – if they file criminal charges that somebody defrauded someone else then just how much defrauding was involved? In the event the government enforcement and justice department place a dollar sum number to this, they’re inadvertently agreeing that the electronic money is real, 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 entire notion back a long way, and the press will continue to drive down the trust of all digital or crypto-currencies.
So, it is a catch-22 for your government, authorities, and enforcement folks, and they cannot look another way or deny this trend any longer. Could it be time for regulations. Well, I personally despise regulation, but isn’t this how it usually starts. Once it is regulated credibility is given to the notion, but his electronic money concept may also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international economy manage that level of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new shift in how we see monetary price, wealth, online transactions and the way the actual world will mind-meld to our future blurred reality. I simply don’t see many people thinking 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 of this and consider it. crypto genius australia is an area that is just loaded with helpful details, as you just have read. As always, though, much of what you determine you need is totally reliant on what you want to achieve. There are probably more than a few specifics you have to pay close attention to on your part. No matter what, your careful attention to the matter at hand is one thing you and all of us have to do. But let’s keep going due to the fact we have some excellent tips for you to give serious attention.
Bitcoin is further away from being The numeraire; not only can it be simply a few, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is exceptional in being quantified by a real, unchanging physical quantity. Gold is unique in preserving worth for centuries. Nothing else in touch of humankind has this unique combination of attributes.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being cash. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, a few 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 ‘large banks’ appear to be accepting the legitimate value of the Bitcoin, no? This actually means is banks realize that they could exchange Fiat to get Bitcoins… and to actually buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even modest change to the Fiat printers; it’s about 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 would they serve?
There would be no Bitcoins left in Flow; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth could they be applied as a medium of trade? And, what could the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But , by the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come into the main dilemma; why search For a ‘new money’ if we already have the best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution is not in a new form of cash, but at a new social arrangement, one without Fiat, without Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is accomplished, Gold will resume its ancient and critical 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 consequent Hungarian hyperinflation, thus he’s intimate experience with financial devastation.
As an engineer and engineer, he Conducted a successful family business in Canada for decades, at its peak employing over 100 workers, until economical upheaval ruined the profitability of North American manufacturing. Driven from business, he chose to study economics… to detect the origin of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful creation of the new block is cut in half. Therefore, this phenomenon will reduce the given ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have a lasting effect and it isn’t yet known if it’s good or bad for ‘Bitcoin’.