Advantages and Disadvantages of Bitcoin

Let’s say there was hanky-panky involved, let us say someone hacked the system or stole the electronic money. Right now, digital currency flies beneath the radar since it isn’t recognized even with all 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 is not, but it’s worth what it signifies if most of us agree to this and have confidence in the currency. What is the difference, it’s an issue of confidence right?

Okay so, let’s say that the regulators, FBI, or another branch of government interferes and files charges – if they record criminal charges that somebody defrauded someone else then how much defrauding was involved? In the event the government enforcement and justice department place a dollar amount number to this, they’re inadvertently agreeing that the digital currency is real, and it has a value, thus, acknowledging it. If they don’t get involved, then some fraud which might or might not have happened sets the entire concept back a long way, and the press will continue to drive down the confidence of all electronic or crypto-currencies.

So, it’s a catch-22 for the government, authorities, and enforcement folks, and they cannot look another way or deny this trend any longer. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually starts. Once it’s regulated credibility is given to the notion, but his digital money theory could also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the international market manage 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 see monetary price, wealth, online transactions and how the real world will mind-meld to our prospective blurred reality. I simply don’t see a lot of folks believing here, but everyone should, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all of this and think on it. The effects of crypto genius, not only on you but many others, is a fact that has to be acknowledged. There are so many possibilities and variations – twists and turns, that maybe you see how difficult it can be to include all bases. But I wanted to stop for a moment so you can reflect on the importance of what you have just read. This is important information that can help you, and there is no doubting that. Our last few items can really prove to be powerful considering the overall.

Bitcoin is farther away from being The numeraire; not only can it be a few, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is unique in being quantified by a true, unchanging physical quantity. Gold is unique in preserving worth for centuries. Nothing else in touch of humanity has this unique blend of qualities.

In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being money. Its advantages are also questionable; the intent would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, a few central banks have declared that Bitcoins might become a ‘reservable’ currency.

Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the true value of the Bitcoin, no? This actually means is banks realize that they could exchange 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 is not even small 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 in the Fed’s ‘wallet’… what practical purpose could they serve?

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

We come into the key dilemma; why search For a ‘new money’ when we already have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The answer is not in a new form of cash, but at a new social structure, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A world of liberty not tyranny. Once this is accomplished, Gold will resume its ancient and vital role as fair money… and not a minute before.

Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he’s intimate experience with financial devastation.

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

The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however , it does have a lasting impact and it is not yet known whether it is good or bad for ‘Bitcoin’.

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