As an engineer and entrepreneur, he Conducted a successful family business in Canada for decades, at its peak using over 100 workers, until economical upheaval destroyed the profitability of North American manufacturing. Driven out of business, he decided to study economics… to discover the origin of the unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have a lasting effect and it is not yet known whether it is good or bad to ‘Bitcoin’.
Okay so, let us say that the authorities, FBI, or another branch of government complies and documents charges – should they file criminal charges that somebody defrauded someone else then just how much defrauding was involved? If the government enforcement and justice department put a dollar amount number to that, they’re inadvertently agreeing that the digital currency is real, and it has a value, consequently, acknowledging it. If they don’t get involved, then any fraud which may or may not have happened sets the whole notion back a long way, and the media will continue to push down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for the authorities, regulators, and enforcement folks, and they cannot look another way or deny that this trend no more. Is it time for regulations. Well, I personally hate regulation, but is not this how it usually starts. Once it’s regulated credibility is given to the notion, but his electronic money theory could also undermine the entire One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for this as well. Can the global market manage that level of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new shift in how we view monetary value, riches, online transactions and how the real world will mind-meld into our future blurred reality. I simply don’t see many folks thinking here, but everybody should, 1 misstep and we can all be in a world of hurt – all of humanity that is. Please consider all this and think on it. The above really only just begins to scratch the surface of what is offered concerning crypto genius australia. However, one really important distinction here directly relates to your own goals. Just be sure you choose those items that will serve your requirements the most. How each one will play out in your situation is largely unknown, but we each have to consider that. Here are several more equally important highlights on this important topic.
Bitcoin is farther away from being The numeraire; not only can it be simply a few, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘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 unique in preserving value for thousands of years. Nothing else in touch of humankind has this unique combination of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being cash. Its advantages will also be questionable; the aim is to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to solve, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate 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 isn’t even small 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 in the Fed’s ‘wallet’… what practical purpose could they serve?
There would be no Bitcoins left in Flow; a perfect corner. If there aren’t any Bitcoins in flow, how on Earth can they be applied 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? Join the Fiat print parade? But then, from the quantity theory of money, Bitcoin would start to lose value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come into the main issue; why hunt To get a ‘new money’ if we have the 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 is not in a new sort of cash, but at 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 liberty not tyranny. Once this is achieved, Gold will resume its ancient and critical role as honest money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he has intimate experience with financial devastation.