Let us say there was hanky-panky involved, let us say someone hacked the system or stole the digital money. At this time, digital money flies beneath the radar as it is not 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 represents if we all agree to that and have trust in the currency. What’s the difference, it is a matter of confidence right?
Alright so, let us say that the regulators, FBI, or another branch of government complies and files charges – if they file criminal charges that somebody defrauded somebody else then how much defrauding was involved? If the government law and justice department place a dollar amount number to that, they are inadvertently agreeing that the electronic currency is real, and it has a value, thus, acknowledging it. When they don’t get involved, then some fraud which may or may not have happened sets the entire notion back a ways, and the press will continue to drive down the confidence of all digital or crypto-currencies.
So, it is a catch-22 for the authorities, regulators, and enforcement people, and they cannot look the other way or deny this trend any longer. Could it be time for regulations. Well, I personally hate regulation, but is not this how it usually begins. Once it is controlled credibility is given to the notion, but his digital currency theory may 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 international market handle that level of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new shift in how we view monetary value, riches, online transactions and how the real world will mind-meld to our future blurred reality. I simply don’t see many folks believing here, but everyone needs to, 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. The above really only just starts to scratch the surface of what is offered concerning crypto genius australia. As always, though, much of what you determine you need is totally reliant on what you want to achieve. Even though it is important to every person concerned, there are important parameters you should keep in mind. The best strategy is to try to imagine the effects each point could have on you. The remainder of this article will present you with a few more very hot ideas about this.
Bitcoin is farther away from being The numeraire; not only can it be a number, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being quantified by a true, unchanging physical quantity. Gold is exceptional in storing worth for centuries. Nothing else in reach of humanity has this exceptional combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, namely 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 into 26,000,000 units; that is , the ‘mining’ algorithm makes harder and harder to fix, then hopeless 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 ‘big banks’ appear to be accepting the legitimate value of the Bitcoin, no? What this actually means is banks realize that they could exchange Fiat for Bitcoins… and also to actually 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 about a week’s worth of printing by the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose could they serve?
There would be no Bitcoins left in Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth could they be used as a medium of trade? And, what would 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 then, by the quantity theory of money, Bitcoin would begin to lose value, just as Fiat allegedly loses value through ‘over-printing’…
We come to the main issue; why search To get a ‘new money’ if we already have the best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The answer isn’t in a new form of cash, but in 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 world of independence not tyranny. Once this is achieved, Gold will resume its ancient and vital role as fair money… and not a moment 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 resultant Hungarian hyperinflation, thus he’s intimate experience with financial devastation.
As an engineer and engineer, he Ran a thriving family business in Canada for decades, at its peak employing over 100 workers, until economical upheaval ruined the profitability of North American production. Driven from business, he chose to study economics… to detect the cause of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ from 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’.