Survivalists have to spend a lot of time thinking about harrowing crises.
One of the major considerations is the modes of currency in the wake of a widespread emergency.
Here’s one form of currency survivalists should definitely avoid.
Cryptocurrency such as bitcoin has been considered a hot commodity.
Speculators who got in on the craze early became millionaires after crypto value skyrocketed in a short amount of time.
However, crypto value has dropped significantly since its peak valuation and continues to fluctuate.
This is just one of the reasons why cryptocurrency is not a good investment for preppers.
Having a small portion of your portfolio in crypto is not objectionable, and using it as an immediate exchange method has some benefits, but don’t plan on it providing a windfall in a SHTF scenario.
As already mentioned, crypto is very volatile.
Commodities, in general, can be an unstable investment, but crypto is on another level of uncertainty.
Precious metals like gold and silver have historically been strong hedges against inflation.
The same can’t be said for crypto, partly because it’s a relatively new form of currency without a confidence-inspiring track record.
Also, precious metals, particularly silver, have practical applications beyond what appears on a balance sheet.
Silver could become particularly useful in a true emergency scenario.
Next, cryptocurrency is intangible.
Commodities require a great deal of faith because they must be delivered if the stockholder requests them.
Trusted brokers who’ve earned credibility over the years can put investors’ minds at ease.
But with crypto, there is nothing tangible.
Ownership is entirely digital, which means it’s susceptible to poor cybersecurity.
One hacker could do considerable damage both to an individual investor’s portfolio, and crypto’s intrinsic value as a whole.
If people lose faith in the security of crypto, the value will crater very quickly.
Moreover, and perhaps most importantly, cryptocurrency will be almost impossible to access when the SHTF.
If something truly catastrophic like an EMP attack befell the United States, crypto would be useless if the power grid were down.
Not only would it be impossible to access, but the banking system would also be in utter collapse.
Crypto is relatively difficult to access as it is.
However, during a widespread collapse, it would be infeasible.
Confidence in crypto would likely evaporate to worthlessness.
Conversely, if you have tangible possession of silver, you could still have barter power, and could potentially use silver for practical purposes.
If you’re enthusiastic about crypto, make sure to temper your enthusiasm because of these glaring drawbacks.
There are too many factors that make it unreliable.
Other stocks might be affected by very specific world events, such as a cotton shortage in a particular region could harm a clothing company that gets its supplies from that area.
But with crypto, all kinds of random world events can cause the price to jump all over that place.
The uncertainty alone should be a red flag.
It is not a good bulk investment for anyone serious about survivalism.