I am reminded of a quote by Steve Jobs that—while timeless—is particularly poignant right now:

“Technology is nothing.

What's important is that you have a faith in people, that they're basically good and smart, and if you give them tools, they'll do wonderful things with them.

It’s not the tools that you have faith in—tools are just tools. They work, or they don’t work.

It’s people you have faith in or not.”

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And digital catastrophe, really? Was Bear Stearns a digital catastrophe? Whether it happens in 48hrs or a week- a loss of confidence is just that. We “invest” with a bank. You better do your homework and choose wisely before giving them your money.

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Life is always changing; suffering is always a part of change and growth. Advancements in technology have changed the velocity of money. This is why we are seeing faster boom and bust cycles than we have ever before. I personally believe we are entering into a change in society due to technology and the education of peoples, that will be cataclysmic in proportion to the past events. I am praying, though there will be pain, that we will not have the bloodshed of the twentieth century. I am hoping that whatever happens, when the entire global central bank system collapses that killing people is not seen as the solution. And that this change leads to more power for the individuals over the controlling interest of the ruling wealthy classes around the world. If this come to fruition and more people have a voice, this would lower the risk of bloody wars. If the power mad leaders are not beholden to the people, they will continue to send our children in harm's way to protect their interests.

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What makes this situation so scary is that a bank run could be generated simply on rumor. Social media starts spreading rumor and away the run goes. I guess that is where you talked about political parties might weaponize this tactic.


doug robertson

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If a system can be broken broken with speech, it can’t be fixed with censorship, and we ought not try it.

The Streisand effect would almost certainly accelerate the phenomenon.

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Interesting thought summary and naming. I love it. The opposite can also be a digital bonanza because it can work for good or bad, depending on your perspective. I would think a company could, in the agreement terms of digital banking apps, throttle or stall service, much like the stock exchanges have triggers and stop trading on stocks (when bad news is mentioned, or there is a "run" on selling a stock), or the entire market (9/11). I bet we go in this direction. Essentially, it's to slow down the emotion and begin to act rationally again and let normalcy (however that's defined - but it could be an average of the last 90 days of activity or something) take over.

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Yes users can now more easily withdraw their fund with a few clicks.

But banks also have the power in this digital age to turn off that login page with 1 click.

Double edge sword.

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Keeping with the theme that QWERTY can cause immediate “digital catastrophes,” here are some examples:

- Social media apps with millions of users getting de-platformed by AWS and others in <24 hours (Parler in the US, Signal and FB and others in foreign countries)

- Arbitrary power blackouts in certain geographic regions

- Arbitrary Internet blackout in certain geographic regions to quell information spread (a la China and N Korea)

- Whole countries being cut off from the SWIFT banking system with a keystroke (Russia was cut off in minutes after the decision was made)

- Ability to withdraw from your bank is prohibited because of your political orientation (a la Canada)

- Disabling digital payments on your phone

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Look at what happened with baby formula when it started running low, now imagine that on a big scale with hospitals buying up all of a medication that is rumored to be having production issues.

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> But what is the response if a large political group decides to log-in to their computer and withdraw their money from a single bank? This is no different than when a large group on the internet decided to target a single stock as part of the meme stock hysteria.

The obvious solution is to outlaw coordinated actitivity by the "wrong" people.

I think that the only interesting question is how long it takes before there's regulation (legal or informal - see Twitter, Facebook, etc's "cooperation" with the US govt) on means to coordinate activity.

The UK's move to effectively ban end-to-end encryption is a big first step in that direction.

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Gold bullion & Bitcoin in cold storage. I really don't know what else to do with my money.

42 years old £2.5M

Today I am lost.

Gold & Bitcoin. I have nothing else.

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Digital Catastrophes

AI , other technologies that are possibly unknown in their manifestations, banking as we are seeing…. are there any brakes we can apply while we think?

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Ugh..this is a very real possibility

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Fractional reserve banking -in your own words- is fragile. Full stop. Bitcoin fixes this.

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"Silicon Valley Bank was the victim of a Digital Catastrophe." - Anthony Pompliano

Now the banks are victims now? Very rich, Anthony. Very rich...

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Mar 20·edited Mar 20

Nice concept, but wrong take here.

The demise of SVB & Signature were pre-meditated by WH.

They wanted to kill the crypto banks.

Balaji’s research shows us the regulator was well aware that 150 banks were insolvent.

So, what is your fear in that scenario if you are the regulator? Well, that there could be a run on the banks once everyone wakes up, & everyone could flee to Bitcoin.

Did the regulator do their duty & inform the depositors of imminent risk? No, they did not.

So, what did they do?

They designed a quick destruction scenario, to close the crypto off-ramps, before any of us was the wiser of the risks in the system.

Attributing a 2-day collapse of a top 20 bank to a Digital Catastrophe is exactly how they want you to interpret it.

But that’s not at all a proper root cause explanation.

FOIA requests needed here.

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