All very good points!

Let's suppose the United States hit the skids and the USD was in free fall with runaway inflation. Precious metals and Cryptocurrencies are the only way to conduct business. The government does what they did in 1933, and asks us to turn in all our PM's. Just like bump stocks in New Jersey, nothing happens. The government then turns its eager eye to Crypto currencies, and outlaws them. Nothing happens because the government can't control them. But this time they have an answer: they shut down the internet in the US.

Now. Let's look at what shutting down the internet will do. Banks have to transfer money physically, like they used to in the 60's. The stock exchanges will have to go back to paper trading, and even if there is money flowing in the economy, it will grind to a halt. They will have to use the Fed to handle money transfers. The few branches of the Fed can't take the volume, and only a few major cities have a Fed branch anymore. Bank transfers happen electronically now.

All of our phones stop working even land lines. Much of the phone communications are done over the internet at some point. Even the switches use the internet to communicate so they get the billing correct. VOIP, Cell phones, TV, some syndicated radio, late model cars, TV's, obviously computers, household appliances, alarm systems, and the list goes on to include anything with a computer in it. All of those things will work on a very limited subset of features, if they work at all.

The government will have 323,000,000 people all highly upset because their tech no longer works. They will have to shut down the power grid too. That spins out into a whole other *%()#)_ storm of problems which we all know spin into chaos.

As soon as the internet comes back, Cryptocurrencies will be there working as if nothing happened. Because they didn't confiscate each and every device able to connect to the internet including every zip drive, every micro sd card, everything.

Block chain:
It isn't very hard to imagine, if we look at it functionally. It is a record of every transaction ever made using whatever digital token the block chain is used for. Digital tokens are Bitcoins, Europium, Litecoin, what ever. Blockchain does this by combining 2 part encryption with distributed processing. We have seen distributed processing, when ever you order something from Amazon. Many computers and many warehouses are used to fulfill an order. We see 2 part encryption every time we use a password and pin to log into an account. Make the pins impossibly complex and link them to the distributed process of money transfers, and voila! BLOCKCHAIN.

An interesting little factoids:
1) As anonymous and safe as bitcoin is, the vast majority of illicit transactions in the world use USD.
2) When the government prints money and puts it into circulation it is called "Quantitative Easing". When people print money and put it into circulation it is called "counterfeiting"