Bitcoin at a Nutshell

Let’s say there was hanky-panky involved, let us say somebody hacked the system or stole the digital money. Right now, digital money flies under the radar since it is not recognized even with all the newest Too Big To Fail regulations on banks, etc.. How can a digital money have worth? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it’s not, but it’s worth what it signifies if we all agree to this and have confidence in the money. What’s the difference, it’s an issue of confidence right?

Alright so, let us say that the authorities, FBI, or another branch of government interferes and files charges – if they file criminal charges that somebody defrauded somebody else then how much defrauding was demanded? If the government enforcement and justice department place a dollar sum number to this, they are inadvertently agreeing that the electronic money is real, and it’s a value, thus, acknowledging it. When they don’t get involved, then any fraud that may or may not have happened sets the whole notion back a ways, and the press will continue to drive down the trust of all digital or crypto-currencies.

So, it is a catch-22 for the government, authorities, and enforcement people, and they cannot look another way or deny this trend any longer. Is it time for regulations. Well, I personally despise 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 even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the international market handle that level of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new change in how we see monetary price, riches, online transactions and the way the actual world will mind-meld into our prospective blurred reality. I just don’t see many folks thinking here, but everyone needs to, one misstep and we could all be in a world of hurt – all of humankind that is. Please consider all this and consider it. All right, we have reviewed the first couple of points concerning crypto genius erfahrungen, of course you realize they play an important role. But there is so much more that you would do well to learn. Nonetheless, you will find them to be of great utility in your research for information. Once your understanding is more complete, then you will feel more self-confident about the subject. The rest of the document will provide you with a few more essential factors to bear in mind.

Bitcoin is farther away from being The numeraire; not just is it simply a few, 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 manages to replace the Dollar as the approved ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is exceptional in being quantified by a real, unchanging physical quantity. Gold is exceptional in preserving worth for centuries. Nothing else in reach of humankind has this exceptional combination of attributes.

In Summary, while Bitcoin has A few advantages over Fiat, namely 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; that is the ‘mining’ algorithm gets 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 announced that Bitcoins might become a ‘reservable’ currency.

Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the true value of the Bitcoin, no? What this actually means is banks recognize that they could exchange 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 modest change to the Fiat printers; it is roughly 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 useful purpose could they serve?

There would be no Bitcoins left Circulation; a perfect corner. If there aren’t any Bitcoins in circulation, 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 boost the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But then, from the quantity theory of money, Bitcoin would start to lose value, as Fiat supposedly loses value through ‘over-printing’…

We come to the main dilemma; why hunt For a ‘new money’ if we already 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 sort of money, 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 huge independence not tyranny. Once this is achieved, Gold will resume its ancient and vital 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, so he’s intimate encounter with financial destruction.

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

The halving takes effect when the Number of ‘Bitcoins’ awarded to miners after their successful creation of the new block is cut in half. Thus, this phenomenon will cut the given ‘Bitcoins’ out of 25 coins to 12.5. It’s 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’.

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