What Can I Use Bitcoins For?

What do you say to this? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were ideal? Do they get the last laugh, or is that only an expected evolutionary process of disruption as all of the kinks are worked out? Well, consider this thought experiment I’d.

Let’s say there was hanky-panky involved, let us say somebody hacked the system or stole the digital money. At this time, digital money flies beneath the radar as it is not recognized even with all the new Too Big To Fail regulations on banks, etc.. How can a digital currency have worth? Hard 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 this and have confidence in the money. What’s the difference, it is an issue of trust right?

Okay so, let’s say that the regulators, FBI, or another branch of government interferes and documents charges – if they record criminal charges that somebody defrauded somebody else then just how much defrauding was demanded? In the event the government enforcement and justice department place a dollar sum number to that, they are inadvertently agreeing that the digital currency is real, and it has a value, thus, acknowledging it. If they don’t get involved, then some fraud which may or may not have happened sets the entire notion back a ways, and the media will continue to push down the trust of all digital or crypto-currencies.

So, it’s a catch-22 for the authorities, regulators, and enforcement folks, and they cannot look the other way or deny that this trend no more. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it is regulated credibility is given to the concept, but his digital money concept may also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international economy manage that degree of disturbance? 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, wealth, online transactions and the way the actual world will mind-meld to our prospective blurred reality. I just don’t see many folks believing here, but everyone should, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please consider all this and consider it. So you can see that crypto genius erfahrungen is a subject that you have to be careful when you are learning about it. However, one really vital distinction here directly relates to your own aspirations. Just be sure you pick those items that will serve your needs the most. You realize that you are ultimately the one who knows which will have the highest impact. The remainder of this article will provide you with a few more very hot ideas about this.

Bitcoin is further away from being The numeraire; not only is it a number, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is exceptional in preserving value for thousands of years. Nothing else in touch 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 cash. Its advantages will also be questionable; the aim would be to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement 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 measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? What this actually means is banks realize that they might trade Fiat to get Bitcoins… and to actually 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 by the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what practical purpose could they serve?

There would be no Bitcoins left in Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Combine the Fiat print parade? But then, by the quantity theory of money, Bitcoin would start to eliminate value, as Fiat supposedly loses value through ‘over-printing’…

We come into the main dilemma; why search To get 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 legislation? All the above. The solution isn’t in a new form of money, but in a new social arrangement, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A world of independence not tyranny. Once this is achieved, Gold will restart its early and critical role as honest 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 has intimate encounter with financial devastation.

As an engineer and engineer, he Conducted a thriving family business in Canada for decades, at its peak employing over 100 workers, until economic upheaval ruined the sustainability of North American manufacturing. Driven out of business, he chose to study economics… to detect the cause of the unhappy circumstance.

The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful development of the new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have an enduring impact and it isn’t yet known if it’s good or bad to ‘Bitcoin’.

Leave a comment

Your email address will not be published. Required fields are marked *