I'm not expert by all means so take this whole thing with a bucket of salt, not just a grain. But it seems like the situation in Italy right now might be a catalyst for the markets to really become solid. At this point in time its pretty speculative, but the logic does follow through.

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Of course, finances specially in a global scale get complicated and I wont attempt to bore anyone with things that might not be of their interest. I think most of the people who visit my blog, don't do so for my financial advise, and if they do, they might be fooling themselves a little bit.

If you are familiar with the way government bonds work, and their importance to the health of a country, simply knowing that Italy's bonds are spiking might be enough to trigger some warnings in your head. Having lived in South America through the crisis that turned Ecuador into a Dollarized economy, I know very well the ramifications of high interests and the attempt to appeal to greedy buyers and how its effectively a time bomb and nothing else.

A simpler explanation for those who are a little newer to this, would be to see government bonds as a representation the debt of the Italian government, by jacking up the interest rates they are paying out to the bond buyers, they are basically attempting to gain liquidity to pay the country's own debt. This sounds good on paper, but only if the buyers were a diverse group and not mainly one financial institution, The European Central Bank.

We already saw a few years ago what happened to Greece, and if you don't know anything about that, I don't know what to say anymore. Greece has never really recovered, only slightly after all these years.

So if Italy defaults, why is that good for crypto?

It's obviously not a good thing for the country itself, to be honest with you its a terrible thing. The speculation however comes from the possibility that all those financial institutions and all those investors who are exiting the bonds market would jump into a new one with a little more resilience.

Basically, the investors need to find a way to diversify and spread out the risk. Crypto offers them the unique opportunity to not be reliant on the ineptitude of a poorly ran government, and I have to apologize if I'm offending any Italians with my words. However, this has been brewing on the stove for a long time, this is not a current occurrence.

When will this happen?

Absolutely no clue, this whole thing will play out like dominoes when it does, and there is absolutely no way the shockwaves wont be felt in a global scope. Us however, who participate of cryptocurrencies are shielded in a very solid way against the ridiculous over printing of money, and the manipulation of the financial institutions disguised as countries.

For those who love numbers as I do, check this out, this is how the greed trap is set. Some will walk away with their ankles broken, or then again they won't, Who knows? I've just seen this whole thing play out so many times, I doubt this time will be any different.

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