As an engineer and engineer, he Conducted a thriving family business in Canada for years, in its peak employing over 100 workers, until economic upheaval ruined the profitability of North American production. Driven from business, he decided to study economics… to detect the cause of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners following their successful development of this new block is cut in half. Therefore, this phenomenon will cut the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however , it does have a lasting 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 documents charges – should they record criminal charges that somebody defrauded somebody else then just how much defrauding was demanded? If the government enforcement and justice department put a dollar sum number to this, they’re inadvertently agreeing that the digital money is real, and it’s a value, consequently, acknowledging it. When they don’t get involved, then any fraud that might or might not have happened sets the whole notion back a ways, and the media will continue to drive down the confidence of all electronic or crypto-currencies.
So, it’s a catch-22 for your government, regulators, 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 begins. Once it is controlled credibility is given to the concept, but his electronic currency theory may also undermine the entire One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the global economy handle that degree of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new shift in how we view monetary price, riches, online transactions and how the real world will mind-meld to our future blurred reality. I simply don’t see a lot of people believing here, but everybody should, 1 misstep and we can all be in a world of hurt – all of humanity that is. Please consider all of this and think on it. Has what you have discovered added to your previous knowledge? You may already have guessed that crypto genius australia is a vast field with much to find out. Yes, it is correct that so many find this and other similar subjects to be of great value. You should be careful about making too many assumptions until the big picture is more clear. Try examining your own unique requirements which will help you further refine what may be necessary. We will tie all together plus give you a hint of other important information.
Bitcoin is further away from being The numeraire; not only is it simply a few, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even though 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 measured by a real, unchanging physical quantity. Gold is exceptional in storing worth for thousands of years. Nothing else in touch of humankind has this exceptional combination of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being money. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is , the ‘mining’ algorithm makes harder and harder to fix, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this statement could very 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’ seem to be accepting the legitimate value of the Bitcoin, no? This actually means is banks recognize 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 is not even small change to the Fiat printers; it’s about 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 in Circulation; a perfect corner. If there are no Bitcoins in flow, how on Earth could they be applied as a medium of trade? And, what could 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? Combine the Fiat print parade? But , from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value through ‘over-printing’…
We come into the key dilemma; why hunt To get a ‘new money’ when we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The solution is not in a new form of cash, but in a new social structure, one without Fiat, without 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 early and vital role as honest 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, so he has intimate encounter with financial destruction.