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 manufacturing. Driven from business, he chose to study economics… to detect the origin of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have a lasting effect and it isn’t yet known if it’s good or bad to ‘Bitcoin’.
Okay so, let us say that the authorities, FBI, or another branch of government interferes and files charges – if they file criminal charges that someone defrauded somebody else then just how much defrauding was involved? If the government enforcement and justice department place a dollar amount number to this, they are inadvertently agreeing that the electronic currency is real, and it’s a value, thus, acknowledging it. If they don’t get involved, then some fraud which might or might not have occurred sets the whole concept 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 your government, regulators, and enforcement folks, and they cannot look the other way or deny this trend any longer. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his electronic money theory may also undermine the entire One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for that as well. Can the international economy manage that level 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 how the actual world will mind-meld into our prospective blurred reality. I just don’t see many folks thinking here, but everybody 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 think on it. The above really only just begins to scratch the surface of what is offered concerning crypto genius software. One thing we tend to believe you will discover is the correct info you need will take its cues from your current predicament. Even though it is important to every person concerned, there are important parameters you should keep in mind. How each one will play out in your circumstances is largely unknown, but we each have to think about that. The latter half of our discussion will center on a couple highly relevant issues as they concern your possible circumstances.
Bitcoin is further away from being The numeraire; not only is it simply a number, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of trade, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is unique in storing worth for thousands of years. Nothing else in reach of humanity has this exceptional combination of qualities.
In Summary, while Bitcoin has Some 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 limit the ‘mining’ of Bitcoins into 26,000,000 units; this is , the ‘mining’ algorithm makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the legitimate value of this Bitcoin, no? This really means is banks realize that they might trade Fiat for Bitcoins… and to really buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest change to the Fiat printers; it is about 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 practical purpose could they serve?
There would be no Bitcoins left in Circulation; an ideal corner. If there are no Bitcoins in flow, 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? Combine the Fiat print parade? But then, from the quantity theory of money, Bitcoin would start to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main issue; why hunt To get a ‘new money’ when we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution isn’t in a new form of money, 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 liberty not tyranny. Once this is achieved, Gold will resume its ancient and vital role as fair money… and not a minute before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he’s intimate experience with financial devastation.