As an engineer and engineer, he Ran a successful family business in Canada for years, in its peak using over 100 workers, until economic upheaval ruined the sustainability of North American production. Driven out of business, he chose to study economics… to discover the origin of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners following their successful creation of the new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however , it does have a lasting effect and it isn’t yet known if it is good or bad for ‘Bitcoin’.
Okay so, let’s say that the authorities, FBI, or another branch of government complies and files charges – should they record criminal charges that someone defrauded someone 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’re inadvertently agreeing that the digital money is real, and it has a value, consequently, acknowledging it. If they don’t get involved, then any fraud that might or might not have happened sets the entire concept back a ways, and the press will continue to drive down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for your government, authorities, and enforcement folks, and they cannot look the other way or deny this trend no more. Could it be time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his electronic currency concept may also undermine the entire One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that as well. Can the global 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 how the real world will mind-meld to our future blurred reality. I simply don’t see many people thinking here, but everyone should, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all this and consider it. As we have just stated, crypto genius is something that cannot be dismissed – or at least should never be ignored. At times there is simply way too much to even attempt to cover in one go, and that is important for you to recognize and take home. We will commence the rest of our conversation right away, but sometimes you have to stop and let things sink in a little bit. After all we have read, this is timely and powerful information that should be regarded. The balance of this article is not to be overlooked since it can make a huge difference.
Bitcoin is further away from being The numeraire; not just can it be simply a number, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even though it manages to replace the Dollar as the accepted ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is exceptional in being measured by a true, unchanging physical quantity. Gold is unique in preserving value for thousands of years. Nothing else in reach of humanity has this unique blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. Its advantages will also be questionable; the intent is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; currently, a few 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 ‘big banks’ appear to be accepting the true value of this Bitcoin, no? What this actually means is banks recognize that they might trade 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 isn’t even modest change to the Fiat printers; it’s 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 would they serve?
There would be no Bitcoins left in Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, 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, just as Fiat supposedly loses value throughout ‘over-printing’…
We come into the main issue; why search To get a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer is not in a new form of money, but at 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 liberty not tyranny. Once this is accomplished, Gold will restart its ancient and vital role as fair money… and not a moment before.
Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he’s intimate experience with financial destruction.