Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the digital currency. Right now, digital currency flies under the radar as 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 is worth what it signifies if we all agree to this and have trust in the money. What’s the difference, it’s an issue of confidence right?
Alright so, let us say that the regulators, FBI, or another branch of government complies and documents charges – should they record criminal charges that somebody defrauded someone else then just how much defrauding was demanded? If the government enforcement and justice department place a dollar sum number to this, they are inadvertently agreeing that the digital currency is actual, and it’s a value, thus, acknowledging it. If they don’t get involved, then any fraud that might or might not have occurred sets the whole notion back a long way, 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 folks, and they cannot look the other way or deny this trend no more. Could it be time for regulations. Well, I personally despise regulation, but is not this how it usually starts. Once it’s regulated credibility is given to the concept, but his electronic money concept could also undermine the whole One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for that as well. Can the international market handle that degree of disruption? Stay tuned, I guess we shall 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 how the real world will mind-meld into our prospective blurred reality. I simply don’t see a lot of people thinking here, but everyone should, one misstep and we can all be in a world of hurt – all of humankind that is. Please think about all this and think on it. There is so much for you to discover about crypto genius software, and we definitely can guide you in this area. However, one really important distinction here directly relates to your own aspirations. The most innocuous details can sometimes hold the most crucial keys as well as the greatest power. Exactly how they effect what you do is something you need to carefully consider. Here are a number of more equally important highlights on this important topic.
Bitcoin is further away from being The numeraire; not just is it a number, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even if it succeeds to replace the Dollar as the approved ‘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 worth for thousands of years. Nothing else in reach of humanity has this unique blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being money. Its advantages will also be questionable; the aim 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 hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, some 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 ‘big banks’ appear to be accepting the true worth of this Bitcoin, no? This really means is banks recognize that they could exchange Fiat to get Bitcoins… and also 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 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 practical purpose could they serve?
There would be no Bitcoins left in Flow; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat supposedly loses value through ‘over-printing’…
We come to the main issue; why hunt To get a ‘new money’ when 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 solution 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 restart its early and critical role as fair money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, and 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 destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, at its peak using over 100 workers, until economical upheaval destroyed the profitability of North American production. Driven from business, he decided to study economics… to detect the origin of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners following their successful creation of the new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however it does have a lasting effect and it is not yet known whether it’s good or bad to ‘Bitcoin’.