The Birth of Cryptocurrency and the Future of Financial Transactions

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

Let us say there was hanky-panky involved, let us say someone hacked the system or stole the digital currency. At this time, digital currency flies under the radar since it isn’t recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital money have worth? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it’s not, but it’s worth what it signifies if we all agree to that and have trust in the currency. What is the difference, it’s a matter of confidence right?

Okay so, let’s say that the authorities, FBI, or another branch of government interferes and documents charges – should they record criminal charges that somebody defrauded somebody else then how much defrauding was demanded? If the government enforcement and justice department put a dollar sum number to that, they are inadvertently agreeing that the electronic currency is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then some fraud that may or may not have occurred sets the whole notion back a long way, and the media will continue to push down the trust of all digital or crypto-currencies.

So, it’s a catch-22 for your authorities, regulators, and enforcement people, and they cannot look another way or deny this trend any longer. Is it time for regulations. Well, I personally despise regulation, but is not this how it usually starts. Once it is controlled credibility is given to the notion, but his digital currency concept could also undermine the entire One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that as well. Can the international economy manage that degree of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new change in how we see monetary value, riches, online transactions and the way the actual world will mind-meld to our prospective blurred reality. I simply don’t see a lot of folks thinking here, but everybody needs to, one misstep and we could all be in a world of hurt – all of humanity that is. Please think about all of this and consider it. What have just discussed is crucial for your understanding about crypto genius software, but there is a lot more to think about. Of course we strongly recommend you learn more about them. We know they are terrific and will aid you in your pursuit for solutions. Getting a high altitude overview will be of immense value to you. We are not done, and there are just a couple of very strong recommendations and tips for you.

Bitcoin is farther away from being The numeraire; not only is it simply a number, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is exceptional in storing value for thousands of years. Nothing else in reach of humanity has this unique blend of qualities.

In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being money. Its advantages will also be questionable; the intent would be to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to solve, then impossible following the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, 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’ seem to be accepting the legitimate worth of the Bitcoin, no? What this actually means is banks realize that they might exchange Fiat for Bitcoins… and to really 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 from the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what practical purpose could they serve?

There would be no Bitcoins left Circulation; a perfect corner. If there are no Bitcoins in flow, how on Earth could they be applied as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But , from the quantity theory of money, Bitcoin would begin to lose value, as Fiat supposedly loses value throughout ‘over-printing’…

We come into the main issue; why search For a ‘new money’ when we 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 solution is not in a new form 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 world of liberty not tyranny. Once this is accomplished, Gold will restart its ancient and vital role as honest money… and not a moment before.

Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he has intimate experience with financial devastation.

As an engineer and entrepreneur, he Conducted a successful family business in Canada for years, at its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American production. Driven out of business, he chose to study economics… to discover the origin of this unhappy circumstance.

The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners after their successful development of the 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 an enduring impact and it isn’t yet known if it’s good or bad to ‘Bitcoin’.

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