The Basics of Bitcoin

Let’s say there was hanky-panky involved, let us say someone hacked the system or stole the digital currency. Right now, digital currency flies beneath the radar as it is not recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital money have value? Difficult to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it is worth what it represents if we all agree to that and have confidence in the currency. What’s the difference, it’s an issue of trust right?

Okay so, let’s say that the regulators, FBI, or another branch of government complies and documents charges – if they record criminal charges that someone defrauded somebody else then just how much defrauding was involved? In the event 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’s a value, consequently, acknowledging it. When they don’t get involved, then some fraud which 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 digital or crypto-currencies.

So, it is a catch-22 for your authorities, regulators, and enforcement people, and they cannot look another way or deny this trend no more. Is it 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 digital currency concept 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 that as well. Can the international 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, wealth, online transactions and the way the real world will mind-meld into our future blurred reality. I just don’t see a lot of folks thinking here, but everyone should, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please think about all this and think on it. There simply is no denying about the ability of crypto genius australia to dramatically alter some circumstances is incredible. We do understand very well that your situation is really important and matters a great deal. We will begin the rest of our conversation right away, but sometimes you have to stop and let issues sink in a little bit. In light of all that is offered, and there is a lot, then this is a great time to be reading this. Our last few items can really prove to be highly effective considering the overall.

Bitcoin is further away from being The numeraire; not only can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally accepted as a medium of trade, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is unique 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 exceptional combination of qualities.

In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, a few central banks have declared that Bitcoins might become a ‘reservable’ currency.

Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the legitimate value of this Bitcoin, no? This actually means is banks recognize that they might exchange 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 is not even small change to the Fiat printers; it is about 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 would they serve?

There would be no Bitcoins left in Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Combine the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…

We come to the main issue; why hunt For a ‘new money’ if we have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The solution is not in a new sort of cash, but at a new social structure, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A world of independence not tyranny. Once this is achieved, Gold will restart its early and vital role as fair money… and not a moment before.

Rudy J. Fritsch was born 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 devastation.

As an engineer and engineer, he Ran a thriving family business in Canada for decades, in its peak employing over 100 workers, until economical upheaval ruined the sustainability of North American manufacturing. Driven out of business, he chose to study economics… to detect the cause of the unhappy circumstance.

The halving occurs when the Amount of ‘Bitcoins’ awarded to miners following their successful creation of this new block is cut in half. Therefore, this phenomenon will reduce the given ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have a lasting effect and it isn’t yet known whether it is good or bad to ‘Bitcoin’.

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