One scenario that is likely to happen especially when the national debt of America is reaching unprecedented levels these days is the collapse of the economy.
What that means is that dollar note in your pocket that the government told you is worth a dollar is now worth no more then the paper that it was printed on.
Called fiat currency, most preppers recognise the fact that these pieces of paper are probably one of the worst form of anything valuable in an economic collapse.
It’s no wonder that any decent preparedness plan must include a stash of valuables other than fiat currency.
It’s been a traditional view that gold is the ideal choice because of it’s real worth and it’s seemingly limited quatities in the world, but recent debate on BItcoin and it’s challenge on gold for as the go-to solution to prepare for an economic collapse have us thinking.
Bitcoin vs Gold. Which is a better bet for a Prepper?
We’ve summarise the pros and cons about bitcoins and gold and came to a conclusion. Check out the results below.
What you need to know about Bitcoin
- Excellent portability
- Excellent anonymity
- Decentralized and government-proof
- Highly volatile, can lose 50% of value literally overnight
- Subject to irreversible theft from dishonest online wallets such as Coinbase
- Completely non-regulated, which is both good and bad
- Now appears to be driven by GREED and a “mania” mindset rather than reasoned users
- Instantly useless in a solar flare, EMP or nuclear war that takes down the ‘net
- Risk of ownership of Bitcoin is HIGH because it’s not “real” until you trade it for something that is real
- Huge risk in Bitcoin being “modified” to create more coins, effectively flooding the current coin scarcity
The thing to remember with Bitcoin is that it’s not REAL until you SELL. Until you sell, it’s just numbers on a distributed ledger.
What you need to know about Gold
Summary of Gold:
- Good portability, but large quantities are hard to move (if you own so much gold that you can’t carry it, by the way, you are pretty well off in this world)
- An excellent store of value, will continue to exist no matter what the psychology of other markets
- Cannot simply “vanish” — will outlast solar flares, EMP, nuclear war and natural disasters
- Can be stolen or lost
- May be confiscated by governments
- Gold purchases can theoretically be tracked by governments if you buy gold with credit cards or bank transfers
- Has universal, long-term value and utility
- Risk of ownership is relatively LOW, because even if everything goes wrong in the world, your gold is still gold
Like everything else, this key to being successful on preparing for an economic collapse is being prudent and not over leverage on one single solution.
Both gold and bitcoins have it’s own unique advantages that entirely excluding one for the other just don’t really add up.
As a guide, we recommend that you go with a mix of gold and bitcoin plus some other hedge as a safe bet against any economic collapse.
Bitcoin or other forms of crypto-currency – 5% ( this is recommended to be used solely for portability and as an escape fund)
Gold or silver – 15%
Land, fine art, firearms/ ammo – 75%
Fiat currency or that greenback you have in your pocket – 5% ( yes, keep some of these because immediately after any economic crash, these can still be used for a limited amount of time before they turn useless)
Stock market – 0%
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