THE BIG BET
GOVT MAY BET AGAINST OWN CURRENCY
The moment that it becomes evident that our stock markets face imminent collapse, investment money will shift out of current holdings and into the only safe haven left available. That safe haven will be Bitcoin.
Similar to the cartoon Roadrunner, Bitcoin just won’t go down. Ever since its inception in 2009, Bitcoin has successfully weathered a plethora of serious attacks. Indeed, whatever has been thrown at Bitcoin has not stuck, but rather, has been deflected. Political assault in the form of national bans has simply caused the local Bitcoin mining industry to shift to another territory. And technical assault in the mode of cyber attack and denial of service has never succeeded in destroying Bitcoin.
As things stand, western societies are currently in a state of slow decline. Should the pace of that declination increase significantly, our daily lives will be widely affected by economic disaster and societal collapse. Key events would likely include mass layoffs as workplaces shut down, widespread mortgage defaults followed by large scale foreclosure operations, mass evictions due to unpaid rental arrears, implosion of retirement funds causing annuities and pensions to cease to be paid out, and the cancellation of retail banking services like personal loans and ATM cash withdrawals.
During such a time, each of us will be compelled to figure out a way to survive and pull through. It is the same for government. If it is human nature to make the best out of every scenario, and it seems reasonable enough to consider that this may be the case, then it remains entirely logical that as our investment markets collapse, government will seek a means to evade the impending financial loss.
One way of doing this, perhaps the only way available during a time of global financial crisis, is for government to bet against its own national currency. This can be done by printing excessive amounts of the national currency which is then traded for Bitcoin.
Should this event occur, the national currency of the trader will swiftly forfeit all of its practical qualities. Those who continue to hold the national currency as a store of value and as the thing that gets us the stuff that we need and want, will find that what they left holding is paper but not money.
Author | Keith Salter
Punk Human 
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