Let’s say there was hanky-panky involved, let us say someone hacked the system or stole the digital currency. At this time, digital money flies beneath the radar as it isn’t recognized even with all the newest Too Big To Fail regulations on banks, etc.. How can a digital currency have worth? Difficult 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 most of us agree to that and have trust in the money. What’s the difference, it’s an issue of trust right?
Alright so, let us say that the authorities, FBI, or another branch of government interferes and documents charges – if they record criminal charges that someone defrauded someone else then how much defrauding was involved? If the government law and justice department put a dollar sum number to that, 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 some fraud which may or may not have occurred sets the entire notion back a long way, and the media will continue to drive down the confidence of all digital or crypto-currencies.
So, it’s a catch-22 for your government, regulators, and enforcement folks, and they cannot look another way or deny this trend no more. Is it 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 notion, but his digital currency theory may also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that as well. Can the global market manage that degree of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, riches, online transactions and how the real world will mind-meld into our future blurred reality. I just don’t see many folks believing here, but everyone needs to, one misstep and we could all be in a world of hurt – all of humanity that is. Please think about all of this and consider it. Do you have any thoughts at this stage? crypto genius erfahrungen is an area that offers a huge amount for those who are serious or need to learn. We have found other folks think these points are valuable in their search. A lot of things can have an impact, and you should widen your scope of knowledge. If you are uncertain about what is required for you, then just take a better look at your specific situation. The rest of our talk will add to what we have mentioned so far.
Bitcoin is further away from being The numeraire; not just is it simply 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 though it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is unique in preserving worth for centuries. Nothing else in reach of humanity has this exceptional combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being cash. Its advantages will also be 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 solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, a few 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 ‘large banks’ appear to be accepting the true value of this Bitcoin, no? This actually means is banks realize that they might exchange Fiat to get Bitcoins… and to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even modest change to the Fiat printers; it’s roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left in Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth can they be applied 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 to… 52 million? To 104 million? Combine the Fiat print parade? But then, by the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come into the key dilemma; why search For a ‘new money’ if we already have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer isn’t in a new sort of cash, but in 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 vital role as honest 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 consequent Hungarian hyperinflation, thus he has intimate encounter with financial devastation.
As an engineer and engineer, he Ran a successful family business in Canada for decades, in its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven from business, he decided to study economics… to discover the origin of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful creation of the new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have an enduring effect and it isn’t yet known whether it’s good or bad for ‘Bitcoin’.