As an engineer and engineer, he Conducted a successful family business in Canada for years, at its peak employing over 100 workers, until economical upheaval ruined the sustainability of North American manufacturing. Driven from business, he chose to study economics… to detect the origin of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners after their successful development of the new block is cut in half. Therefore, 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 is not yet known if it is good or bad to ‘Bitcoin’.
Alright so, let us say that the regulators, FBI, or another branch of government complies and documents charges – if they record criminal charges that someone defrauded somebody else then just how much defrauding was involved? If the government enforcement and justice department put a dollar sum number to that, they’re inadvertently agreeing that the digital currency is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then some fraud which may or may not have occurred sets the whole concept back a long way, and the press will continue to drive down the confidence of all electronic or crypto-currencies.
So, it’s a catch-22 for your government, authorities, and enforcement people, and they cannot look another way or deny this trend no more. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it’s controlled credibility is given to the concept, but his digital money concept could also undermine the whole One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for that as well. Can the international economy handle that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new shift in how we view monetary price, wealth, online transactions and how the real world will mind-meld into our future blurred reality. I simply don’t see many folks believing here, but everyone needs to, 1 misstep and we can all be in a world of hurt – all of humanity that is. Please consider all this and think on it. We have included a few basic things about crypto genius, and they are essential to consider in your research. But there is so much more that you would do well to study.
They will serve you well, however, in more ways than you know. Gaining a high altitude snapshot will be of immense benefit to you. The rest of the article will provide you with a few more essential points to bear in mind.
Bitcoin is farther away from being The numeraire; not just can it be 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 true, unchanging physical quantity. Gold is exceptional in preserving value for thousands of years. Nothing else in touch of humankind has this unique combination of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being money. Its advantages are also questionable; the intent is to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm makes harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, 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 ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? This really means is banks recognize that they could 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 is not even small change to the Fiat printers; it is about a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left Flow; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth could they be applied as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come to the key dilemma; why hunt For a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The solution isn’t in a new form of cash, but at a new social arrangement, one without Fiat, without Government spying, without drones and swat teams… with no 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 minute before.
Rudy J. Fritsch was born 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 has intimate experience with financial destruction.