Bitcoin continues to “not go away” and has been growing in visibility ever since it’s inception in 2009. It has been labeled digital gold and a revolution in finance by its cheerleaders, and to the contrary, labeled criminal and fake by its detractors. Nonetheless, Bitcoin, along with a myriad of other currencies, appear to be here to stay provided the technological infrastructure doesn’t break down.
But, what if our interconnected world came to a grinding halt and how could this happen? Enter the EMP, or, the electromagnetic pulse….otherwise known as the weakness of the world. Be it generated by a solar flare or by more nefarious means (i.e. a terrorist attack), an EMP can knock out the entire grid.
When would the grid reboot back to previous capacity? Who knows? However, it is interesting to think about what would happen to people’s money, be it in bank accounts, brokerage accounts, or Bitcoin wallets. When the world goes dark what happens to the digital wealth? Does it disappear?
Bitcoin is for the most part entirely digitally based but so are most fiat currencies. People’s money just exists as numbers on a screen and the physical manifestation of the wealth may not exists. An EMP could knock out all records of wealth and leave people impoverished without any claim to the paper wealth they held so dear.
This is something to keep in mind in these interesting times. Diversifying into hard assets is one way to batten down the hatches if this came to fruition. While Bitcoins and dollars may vanish in an EMP, gold, commodities, and farmland will not. Hope for the best and plan for the worst – be prepared for the weakness of the world.