Bitcoin, Cryptocurrency and Prepping

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You’ve lived among the great Amish people of Pennsylvania if you haven’t heard about cryptocurrency, or specifically Bitcoin in the last 12 months.

What are the Benefits of Using Cryptocurrency?

Some of the reasons that a lot of preppers have discussed the benefits of using this digital currency as a safe haven in the event of a SHTF situation is:

• It’s unregulated, so no private or government entity can get their greedy hands on it.
• Cryptocurrency transactions can be completed in total anonymity. Nobody at the IRS gets a record of your crypto exchange, unless you want them to find out.
• If you want to set up a private transfer of crypto, you can have it set up for specific “triggers,” thus circumventing the state-run probate and inheritance (death) tax.
• If you can’t get to the bank, how will you be able to spend money? Thankfully, with cryptocurrency, you’re able to make peer-to-peer transactions without the use of a bank.
• Need to get the hell out of Dodge? If you’re headed out of the United States, you can carry your cryptocurrency wallet with you, or transfer crypto funds from one of many online wallets without having to pay wire fees or taxes.
• The technology is rapidly evolving, so these benefits will only improve over time.

Are there Drawbacks to Using Cryptocurrency?

Even the biggest advocates for cryptocurrency would be lying to themselves if they didn’t agree that there are some big drawbacks to utilizing cryptocurrency. Just like anything, there are pros and cons.

One of the biggest drawbacks is the fact that if you lose your wallet, you’re hosed. Yes, there are online wallets you can store your cryptocurrency inside of, BUT – have you ever heard of the Mt. Gox theft? Millions of dollars in Bitcoin simply walked away after one of the largest cryptocurrency exchanges got hacked. There is no FDIC insurance for Bitcoin, so once those coins were stolen, they vanished like a fart in the wind.

Are there safeguards for this type of calamity? Sure, you can opt for buying a hardware cryptocurrency wallet. The problem is, it’s a physical device. It can be stolen, damaged, or destroyed… so you had better take care of it well.

Next, there are currency fluctuations on a regular basis. Are there fluctuations with fiat currencies? Absolutely. However, don’t forget the parabolic rise of Bitcoin in late 2017… Bitcoin rose to a price of over $20,000 before crashing down to the price of today’s blog post – just over $6,000 per Bitcoin. That’s a wild swing, and you know there are still people holding Bitcoin that purchased at the peak price of over $20,000.

How Cryptocurrency Fits With Your Prepping

In your humble blogger’s opinion, cryptocurrency should be at least a small portion of your prepping plan. In the United States, that fiat US Dollar is still what makes the world go ’round. Since Bitcoin isn’t yet “mainstream,” you can’t buy groceries or gas at your local store with it just yet.

Is the day coming where you’ll be able to use Bitcoin or another cryptocurrency to make everyday purchases? Many analysts believe that day is coming sooner rather than later. Until that day comes, however, buy cryptocurrency with a cautious and skeptical mind.

It would be a poor decision to ignore the upside of Bitcoin and cryptocurrency at this point. The technology behind it is advancing rapidly, with some of the biggest companies in the world backing those advances. Major tech companies are investing millions of dollars to take advantage of this rising tide, and you shouldn’t ignore that.

Be wise, be intelligent, and read as many perspectives as you can. In the coming weeks, we’ll be featuring some of the technology that we think is critical to implement as part of a long-term prepping and survival plan.