As an engineer and entrepreneur, he Ran a thriving family business in Canada for decades, in its peak using over 100 workers, until economical upheaval ruined the sustainability of North American manufacturing. Driven from business, he chose to study economics… to discover the cause of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners following their successful creation of this new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have an enduring impact and it isn’t yet known whether it’s good or bad to ‘Bitcoin’.
Alright so, let’s say that the regulators, FBI, or another branch of government complies and files charges – if they file criminal charges that someone defrauded somebody else then how much defrauding was demanded? In the event the government enforcement and justice department put a dollar amount number to this, they’re inadvertently agreeing that the electronic currency is actual, and it’s a value, consequently, acknowledging it. When they don’t get involved, then some fraud which might or might not have occurred sets the whole notion back a ways, and the media will continue to push down the trust of all electronic or crypto-currencies.
So, it’s a catch-22 for the authorities, authorities, and enforcement people, and they cannot look another way or deny that this trend no more. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the concept, but his digital money theory 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 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 view monetary price, riches, online transactions and the way the actual world will mind-meld into 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 this and consider it. Do you have any thoughts at this point? No question, we are just getting started with all that can be known about crypto genius software. You can find there’s much in common with topical areas directly resembling this one. At times it can be tough to get a clear picture until you discover more. Do you know exactly the kind of info that will help? If not, then you should discover more about this.
The concluding talk will solidify what we have revealed to you up to this point.
Bitcoin is further away from being The numeraire; not just is it simply a number, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique 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 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 aim is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to fix, then impossible following 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 major 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 realize that they could trade Fiat for 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 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 useful purpose could they serve?
There would be no Bitcoins left Flow; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth can they be used as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, as Fiat supposedly loses value throughout ‘over-printing’…
We come to the key dilemma; why search To get a ‘new money’ if we have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The answer isn’t in a new sort of cash, but at a new social arrangement, one without Fiat, without Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A huge independence not tyranny. Once this is accomplished, Gold will resume its early and critical role as honest money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he has intimate experience with financial destruction.