As an engineer and entrepreneur, he Ran a thriving family business in Canada for years, in its peak using over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven from business, he decided to study economics… to detect the origin of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners following their successful creation of this 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 impact and it is not yet known whether it’s good or bad for ‘Bitcoin’.
Okay so, let us say that the authorities, FBI, or another branch of government complies and files charges – should they record criminal charges that somebody defrauded somebody else then just how much defrauding was involved? If the government law and justice department put a dollar sum number to that, they’re inadvertently agreeing that the digital money is actual, and it’s a value, thus, acknowledging it. When they don’t get involved, then some fraud that may or may not have happened sets the entire concept back a ways, and the press will continue to push down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for the government, authorities, and enforcement people, and they cannot look another way or deny that this trend any longer. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it is regulated credibility is given to the concept, but his digital money concept could also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the global market manage that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new shift in how we see monetary price, riches, online transactions and how the real world will mind-meld to our prospective blurred reality. I just don’t see many folks believing here, but everyone needs to, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please think about all this and consider it. The above really only just begins to scratch the surface of what is available concerning crypto genius. What I have found is it really just depends on your goals and needs as it relates to your unique situation. There are always some points that will have more of an effect than others. Specifically how they effect what you do is something you need to carefully consider. We will now move ahead and talk more about a few points in depth.
Bitcoin is further away from being The numeraire; not only is it a few, much as Fiat… but its worth is measured in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is exceptional in preserving worth for centuries. Nothing else in touch of humanity has this unique combination of attributes.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. Its advantages are also questionable; the intent is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; already, a few central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant 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 recognize that they might exchange Fiat to get Bitcoins… and to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small change to the Fiat printers; it is about a week’s worth of printing by 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 in Circulation; an ideal corner. If there are no Bitcoins in circulation, how on Earth could they be applied as a medium of trade? And, what could the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But , by the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the key dilemma; why search For a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The answer isn’t in a new sort 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 huge independence not tyranny. Once this is accomplished, Gold will restart its early and critical role as honest money… and not a moment 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 resultant Hungarian hyperinflation, so he’s intimate encounter with financial destruction.