Showing posts with label currency. Show all posts
Showing posts with label currency. Show all posts

Wednesday, June 25, 2025

Computers and hyperdeflation.



Anti-inflation or deflation is also very dangerous for economics. Inflation decreases the value of currency. Deflation is the opposite phenomenon, where the number of currency decreases compared to ownership. The ultimate version of hyperdeflation is that all other money than one single Euro is erased from the central bank. That means that the entire state can be bought with one euro. That is one of the things that can cause destruction. 

But then we can remember that the outside value of that Euro is ultimate. The outer and inner values of currency can be different. And the outside value means. The value compared to some other currency. There is a possibility that some hackers will make the computer break into some state’s or EU central bank. And then just erase all currency. 


1) Inflation: on-purpose and non-controlled decreases currency value. 


2) Devaluation: the central bank's Purpose and control decrease currency value compared to some other currencies. 


3) Deflation: non-purpose or non-controlled increase of currency value. 


4) Revaluation: proposal and controlled increase of currency value. 


That can happen by destroying the registers that involve serial numbers of physical notes. And the same hackers can destroy the databases that keep books of digital currency. Hyperinflation is a thing that can be more dangerous than inflation. When we think about things like currencies their values are connected with other currencies. The currency’s value is determined by how much currency is in the markets. This is the thing that makes the dollar a very special currency. 

When the dollar is the locomotive of world economics there is lots of currency that is out of the USA. If that currency that is partially connected to cryptocurrencies will return to markets or return to home, that causes acceleration of inflation. That happens by exchanging dollars to some other currency. 

But if lots of dollars suddenly vanish like in the bank accounts of the cryptocurrency companies. Or simply destroyed by some hackers. That causes deflation. 

The central bank, the Fed must make more money to put the currency value at a stable level. If the Fed doesn’t make that money that causes deflation. And if that money comes back to markets, that causes inflation because there is more currency at markets compared with the ownerships that the state has increased. Because there is more money compared to state ownerships than before. But if the number of the currency decreases compared to state ownerships that causes deflation. 


 

Tuesday, June 24, 2025

Cryptocurrencies and quantum technology.





Encrypting information increases security. And security is trust. Did you think what could happen if somebody breaks the code that the central bank uses to ensure the currency? That allows the hacker to start to make lots of currency. In normal trade, people use digital currency. The big difference between digital currency and cryptocurrency is that the last one is not controlled by the state. Cryptocurrency is like stock. Investors can buy those things and then sell them to other people. Or they can exchange their cryptocurrency for state money or real money. The problem is that nobody controls Bitcoin or other cryptocurrencies. 

There is a lot of money in the cryptocurrency companies' accounts. And if that money will be released to the markets that causes hyperinflation. The main problem with U.S. economics is connected to its role as the dominating actor in global marketing. There are lots of dollars stored in the other state’s banks. And if those dollars are released to markets that collapses the dollar’s value. Bitcoin can cause a similar effect. But the main difference is that the central banks don’t even know or control the money that those cryptocurrency companies handle. 

The bitcoin countdown has begun. Quantum computers can crack the Bitcoin security algorithm in less than a week. But there is a possibility that some actors have already cracked that code. The AI-driven learning neural network can do many of the same things as quantum computers. And in those systems, the AI-driven network architecture drives autonomous workstations to run the code-breaking algorithms. In those kinds of systems, the AI can share the number line that the defending system creates using the Riemann Zeta function between those workstations. Then those systems can try to crack the security key. 

If the system can use the botnet with thousands of computers that thing can make the de-encryption very fast. And that can endanger Bitcoin. The main problem with Bitcoin, and other cryptocurrencies is that they offer a place where actors can dump their money. There is no bottom in cryptocurrencies. The thing that makes cryptocurrencies dangerous is that a considerable part of the state currency can be dumbed into cryptocurrency. There is a lot of currency out of marketing. When the state sees that there is not enough money, it can deliver more currency.  

The contract that the cryptocurrency can be bought from investors means that if the cryptocurrency company delivers very much state currency to the market it collapses the value of the currency. The inflation mechanism is so simple. Only a lot of money is needed. And when the number of currency compared to state ownerships and state merchandise rises that drops the value of currency. There is lots of money invested and locked in cryptocurrencies. There is a possibility that somebody starts to create their own cryptocurrency using stolen or cracked security code. Suppose this is not noticed in cryptocurrency companies. It can cause a dramatic collapse in marketing. 


https://www.rudebaguette.com/en/2025/06/bitcoins-countdown-has-begun-experts-reveal-when-quantum-computers-will-finally-shatter-its-legendary-encryption/

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