As an engineer and engineer, he Conducted a successful family business in Canada for decades, at its peak using over 100 workers, until economic upheaval ruined the sustainability of North American manufacturing. Driven from business, he chose to study economics… to discover the origin of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however it does have an enduring effect and it is not yet known if it is good or bad to ‘Bitcoin’.
Okay so, let us say that the authorities, FBI, or another branch of government complies and documents charges – if they record criminal charges that somebody defrauded someone else then how much defrauding was involved? If the government law and justice department put a dollar amount number to that, they are inadvertently agreeing that the electronic money is actual, and it has a value, thus, acknowledging it. If they don’t get involved, then any fraud which may or may not have happened sets the whole notion back a ways, and the media will continue to push down the confidence of all digital or crypto-currencies.
So, it is a catch-22 for the authorities, authorities, and enforcement folks, and they cannot look another way or deny this trend no more. 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 digital currency concept could also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international economy handle that degree of disturbance? 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 value, riches, online transactions and the way the real world will mind-meld to our prospective blurred reality. I simply don’t see a lot of folks thinking here, but everybody needs to, one misstep and we can all be in a world of hurt – all of humankind that is. Please think about all of this and think on it. The relative effect of crypto genius on your situation can be remarkable and cause issues of all kinds. It can be difficult to cover all possible scenarios simply because there is so much involved. So we feel this is just an excellent time to take a break and assess what has just been covered. After all we have read, this is timely and powerful information that should be regarded. If you continue, we know you will not be unhappy with what we have to offer in this article.
Bitcoin is further away from being The numeraire; not just can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, and even though it manages to replace the Dollar as the approved ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique 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 exceptional blend of qualities.
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 will also be questionable; the intent is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, a few central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of this Bitcoin, no? What this really 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 small change to the Fiat printers; it is roughly a week’s worth of printing from the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left Circulation; 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 destiny? Change the algorithm and increase the 26 million to… 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 issue; why hunt To get a ‘new money’ when we already have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer is not 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 accomplished, Gold will resume its ancient and critical role as fair money… and not a minute 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 encounter with financial devastation.