As an engineer and engineer, he Conducted 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 this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful development of the new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s 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 – if they record criminal charges that somebody defrauded somebody else then how much defrauding was demanded? If the government law and justice department put a dollar sum number to this, they’re inadvertently agreeing that the electronic currency is actual, and it’s a value, thus, acknowledging it. If they don’t get involved, then any fraud that may or may not have happened sets the entire 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 your authorities, authorities, and enforcement folks, and they cannot look the other way or deny that this trend any longer. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually starts. Once it’s controlled credibility is given to the notion, but his electronic money theory could also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this 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, riches, online transactions and how the actual world will mind-meld to our prospective blurred reality. I just don’t see a lot of folks believing here, but everybody needs to, one misstep and we can all be in a world of hurt – all of humanity that is. Please think about all of this and think on it. The effects of crypto genius software, not only on you but a lot of others, is a fact that has to be recognized. We do understand very well that your situation is really important and matters a great deal. So we feel this is just an excellent time to take a break and assess what has just been covered. We are highly certain about the ability of what we offer, today, to make a difference. Our final few items can really prove to be powerful considering the overall.
Bitcoin is farther away from being The numeraire; not just is it a few, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even though it manages to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is exceptional in preserving value for centuries. Nothing else in reach of humanity has this unique blend of attributes.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being cash. Its advantages will also be questionable; the aim is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to fix, then hopeless following 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 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 true value of this Bitcoin, no? This actually means is banks recognize that they might exchange Fiat to get Bitcoins… and also to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it is roughly 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 in Circulation; an ideal 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 possibly do to defend against such a destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Combine the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value throughout ‘over-printing’…
We come into the key dilemma; why hunt For a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The answer isn’t in a new form of money, but in a new social structure, one without Fiat, without Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is achieved, Gold will resume its early and critical role as fair money… and not a minute 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, so he’s intimate encounter with financial destruction.