As an engineer and engineer, he Ran a thriving family business in Canada for decades, in its peak using over 100 workers, until economical upheaval ruined the profitability of North American manufacturing. Driven from business, he decided to study economics… to detect the origin of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however it does have an enduring impact and it is not yet known if it’s good or bad to ‘Bitcoin’.
Okay so, let’s say that the regulators, FBI, or another branch of government interferes and documents charges – should they record criminal charges that someone defrauded someone else then just how much defrauding was demanded? If the government law and justice department put a dollar sum number to this, they’re inadvertently agreeing that the electronic currency is real, and it has a value, thus, acknowledging it. If they don’t get involved, then any fraud which might or might not have occurred sets the whole concept back a long way, and the media will continue to push down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for your government, authorities, and enforcement folks, and they cannot look the other way or deny that 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 regulated credibility is given to the concept, but his electronic currency theory may also undermine the entire One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for this as well. Can the global economy manage that level of disruption? 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 price, wealth, online transactions and how the real world will mind-meld into our future blurred reality. I simply don’t see a lot of folks thinking here, but everyone should, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all of this and consider it. All right, we have reviewed the first couple of points regarding crypto genius software, of course you realize they play a significant role. There is a tremendous amount you truly should take the time to find out about. We feel you will find them to be very helpful in a lot of ways. Once your knowledge is more complete, then you will feel more self-confident about the subject. But we have saved the best for last, and you will know what we mean once you have read through.
Bitcoin is farther away from being The numeraire; not just is it simply a number, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even though 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 exceptional in storing value for thousands of years. Nothing else in touch of humanity has this exceptional blend of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being money. Its advantages will also be questionable; the aim would be to limit 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 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 Significant step for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate worth of this Bitcoin, no? What this actually means is banks recognize that they could trade Fiat for 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 small 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 Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth can they be applied as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Combine the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would start to eliminate value, as Fiat allegedly loses value through ‘over-printing’…
We come to the main issue; why search To get a ‘new money’ when we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The answer is not in a new form of money, but in 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 world of liberty not tyranny. Once this is achieved, Gold will restart its early 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 consequent Hungarian hyperinflation, thus he’s intimate experience with financial devastation.