What’s Bitcoin? A Concise and Informative Guide

What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Do they get the last laugh, or is this just an expected evolutionary process of disturbance as all of the kinks are worked out? Well, consider this thought experiment I had.

Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the electronic money. At this time, digital money flies beneath the radar since it isn’t recognized even with all the new 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 signifies if most of us agree to that and have confidence in the money. What’s the difference, it’s a matter of trust right?

Okay so, let’s 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 how much defrauding was involved? If the government enforcement and justice department put a dollar sum number to this, they are inadvertently agreeing that the digital money is actual, and it’s a value, consequently, acknowledging it. When they don’t get involved, then some fraud that may or may not have happened sets the whole concept back a long way, and the media will continue to drive 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 this trend no more. Is it time for regulations. Well, I personally hate regulation, but is not this how it usually starts. Once it is controlled credibility is given to the notion, but his electronic money concept may also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for this as well. Can the global economy manage that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new change in how we view monetary price, riches, online transactions and how the real world will mind-meld into our prospective blurred reality. I just don’t see a lot of people thinking here, but everybody needs to, 1 misstep and we can all be in a world of hurt – all of humanity that is. Please think about all this and consider it. crypto genius erfahrungen is such a broad field of study, and you do have to decide which of the overall parts of the puzzle are more relevant to you.

But that can vary slightly, and it really just depends on how you want to use the information. Of course there is rather a lot more to be learned. The last half of the article will offer you more solid info about this.

Some of these suggestions really are critical to your understanding, and there is even more going beyond what is about to be covered.

Bitcoin is farther away from being The numeraire; not only can it be simply a few, much as Fiat… but its worth is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can not possess 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 blend of qualities.

In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being money. Its advantages will also be questionable; the intent is to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may 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 true worth of the Bitcoin, no? This really means is banks recognize that they might exchange Fiat for Bitcoins… and to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest change to the Fiat printers; it’s about a week’s worth of printing by the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose could they serve?

There would be no Bitcoins left in Circulation; 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, by the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value through ‘over-printing’…

We come into the key dilemma; why hunt For a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The solution isn’t in a new form of cash, but in a new social arrangement, 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 restart its ancient and critical role as honest 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, so he’s intimate experience with financial destruction.

As an engineer and entrepreneur, he Ran a successful family business in Canada for years, at its peak using over 100 workers, until economic upheaval destroyed the sustainability of North American production. Driven from business, he decided to study economics… to discover the origin of this unhappy circumstance.

The halving occurs when the Amount of ‘Bitcoins’ awarded to miners after their successful creation 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 a lasting effect and it isn’t yet known whether it’s good or bad to ‘Bitcoin’.

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