Bitcoin Mining In Plain English

Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the electronic money. At this time, digital currency flies under the radar since it is not recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital money have value? 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 represents if most of us agree to this and have trust in the money. What is the difference, it is an issue of confidence right?

Alright so, let us say that the regulators, FBI, or another branch of government interferes and documents charges – should they record criminal charges that somebody defrauded someone else then just how much defrauding was involved? If the government law and justice department place a dollar sum number to this, they’re inadvertently agreeing that the electronic currency is actual, and it has a value, consequently, acknowledging it. When they don’t get involved, then any 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 trust of all digital or crypto-currencies.

So, it’s a catch-22 for your government, regulators, and enforcement folks, and they cannot look the other way or deny that 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’s regulated credibility is given to the concept, but his electronic money theory could also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that as well. Can the global economy manage that level of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, riches, online transactions and how the real world will mind-meld into our future blurred reality. I just don’t see a lot of folks believing here, but everybody should, one misstep and we could all be in a world of hurt – all of humanity that is. Please think about all of this and think on it. All right, we have gone over the first couple of points regarding crypto genius erfahrungen, of course you realize they play a significant role. Of course we strongly suggest you discover more about them. However, you will discover them to be of great utility in your search for information. However, we always emphasize that anyone takes a closer examination at the overall big picture as it applies to this subject. So we will give you a few more important ideas to think about.

Bitcoin is further away from being The numeraire; not just is it a few, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is unique in preserving worth for centuries. Nothing else in touch of humankind has this unique combination of attributes.

In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its promise to being cash. Its advantages are also questionable; the intent is to restrict the ‘mining’ of Bitcoins to 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; currently, some central banks have announced that Bitcoins might become a ‘reservable’ currency.

Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? What this really means is banks recognize that they might trade Fiat to get Bitcoins… and also 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 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 practical purpose would they serve?

There would be no Bitcoins left in Flow; an ideal corner. If there aren’t any 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 increase the 26 million into… 52 million? To 104 million? Join the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value through ‘over-printing’…

We come into the key dilemma; why search To get a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The answer isn’t in a new sort of money, but at a new social arrangement, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge independence not tyranny. Once this is achieved, Gold will restart its ancient and critical role as honest money… and not a moment before.

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

As an engineer and engineer, he Conducted a successful family business in Canada for decades, in its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven out of business, he chose to study economics… to discover the cause 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 reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however it does have a lasting impact and it isn’t yet known whether it is good or bad for ‘Bitcoin’.

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