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The Collapse of BitCoin and Digital Currencies

This is not a prophecy, it is a prediction based upon available information and logical projections as to likely outcomes.

Photo by RDNE Stock project on Pexels.com

We live in a world of conflict. Russia, Iran, and China are our open and covert adversaries. We all know what would happen to Bitcoin and other digital currencies if the grid goes down. All that money, whether behind a firewall or not, will be inaccessible. But that is not the kind of collapse I foresee.

Recently, reports of serious problems with AI have revealed: AI has broken out of its container. AI executives are worried that they may lose control of AI. AI isn’t sentient, but it is “thinking” on its own and doing things it was not told to do. There is talk of regulating and reigning in AI in the United States, but China is going full bore with AI. People in the US are worried about surveillance and AI invading personal finances or spoofing people into giving away their information. AI has been used to mimic family members’ voices in an attempt to extort money.

AI reminds me of the myth of Pandora’s Box. Zeus gave Pandora given a box and told never to open it, but curiosity overwhelmed her and when she opened it, all diseases and evils were loosed upon the world. Once the box was opened, there was no way to put the evil back in. AI is out of the box! When Anthropic reported that its AI models had breached its testing area, they said it had escaped its sandbox. Even if we stop developing AI, China will continue. China is already using it to surveil its people. It even calls its public monitoring system “Skynet” which is the name for robot control of humanity in the Terminator movies. Apparently, the Chinese Communist Party and Xi aren’t too worried about public opinion or popular objections to state tyranny and control.

Which brings me to my prediction. China has a vested interest in destroying the United States and to remove us as a competitor in its quest for world domination. It is using social media in the US to create fear, turn people against the government, destroy our moral compass, and addict us to fentanyl while killing off our young. I believe the next step will be to use its advanced AI to crack BitCoin and other digital currencies and steal billions in assets. A billion dollar theft of currencies would cause a collapse of the digital currency market, shake confidence in the banking system and in Wall Street. Because AI is on the way to breaking encryption, it could also undermine the entire financial system, not just of the United States, but of the world. Quantum computing with AI password cracking would make the entire economic system untrustworthy. What holds the economy together? It is the belief that the paper the government prints is actually worth something. Since the dollar is no longer backed by gold or other material resources, once that trust in our paper is broken, the whole pyramid scheme will come crashing down. If the banking system is undermined by collapsed security, there will be no safe haven for your money. We will be back to bartering for real and tangible goods and services.

If we were to enter into open warfare with China or Russia, this prediction isn’t just a maybe, along with an attack on our power grid, water supply and our food supplies, it is a near certainty.

Sleep well tonight.

“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” – Matthew 6:19–21 (ESV)

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