As an engineer and engineer, he Ran a successful family business in Canada for years, at its peak using over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven from business, he decided to study economics… to detect the cause of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners following their successful development of the new block is cut in half. Thus, 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 effect and it is not yet known whether it’s good or bad to ‘Bitcoin’.
Alright so, let’s say that the authorities, FBI, or another branch of government interferes and documents charges – if they record criminal charges that someone defrauded somebody else then just how much defrauding was demanded? If the government enforcement and justice department place a dollar sum number to that, they are inadvertently agreeing that the electronic money is actual, and it has a value, consequently, acknowledging it. When they don’t get involved, then some fraud which may or may not have happened sets the whole notion back a long way, and the press will continue to drive down the trust of all electronic or crypto-currencies.
So, it’s a catch-22 for your authorities, regulators, and enforcement people, and they cannot look another way or deny that this trend no more. Could it be time for regulations. Well, I personally despise regulation, but isn’t this how it usually starts. Once it is controlled credibility is given to the notion, but his electronic money concept may also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the global market handle that degree of disturbance? 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 actual world will mind-meld to our prospective blurred reality. I simply don’t see a lot of people thinking here, but everybody should, one misstep and we can all be in a world of hurt – all of humanity that is. Please think about all this and consider it. We want to say a fast word about our conversation re crypto genius australia. As always, though, much of what you decide you need is totally dependent on what you want to accomplish. There are possibly more than a few particulars you have to pay close attention to on your part. No matter what, your careful attention to the matter at hand is one thing you and all of us have to do. The latter half of our talk will center on a few highly pertinent issues as they concern your possible circumstances.
Bitcoin is farther away from being The numeraire; not just is it simply a number, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though it manages to replace the Dollar as the approved ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is exceptional in being measured by a true, unchanging physical quantity. Gold is exceptional in preserving worth for centuries. Nothing else in touch of humanity has this unique blend of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being cash. Its advantages will also be questionable; the intent would be to limit the ‘mining’ of Bitcoins into 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; currently, a few central banks have announced that Bitcoins may 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 true worth of this Bitcoin, no? What this actually means is banks recognize that they might exchange Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even modest 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 at the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left in Circulation; a perfect corner. If there aren’t any Bitcoins in flow, how on Earth can they be used as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But , by the quantity theory of money, Bitcoin would start to lose value, as Fiat supposedly loses value throughout ‘over-printing’…
We come into the key dilemma; why search For a ‘new money’ if we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The solution is not in a new form of money, but at a new social structure, 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 accomplished, Gold will restart its early 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 resultant Hungarian hyperinflation, thus he has intimate experience with financial devastation.