Why Bitcoin Is No Good For SHTF Preppers
Opinion is often divided among the Prepper community as to whether Bitcoin is a good idea. Some will say that Bitcoin is apocalypse-proof. Unfortunately, I disagree and although I respect the opinion of others. Personally, I believe there are far better items you can spend your money on when it comes to prepping.
So to “Coin A Phrase” in this article, I will put my “Money Where My Mouth Is” 🙂 and tell you why I believe Bitcoin or any other cryptocurrency is No Good For SHTF Preppers.
Setting The Scene
Whilst it’s true that natural and man-made disasters may not lead to apocalyptic doomsday events. You only have to take a look at whats happening in the world today to see that all is not well. We may be closer than you think to a SHTF situation and Bitcoin is going to be of no use to you if the worst happens.
For those readers who believe this statement is based on scaremongering. Take a look at John Haller’s recent Prophecy Update “Delusion 2.0″ below. In it, he highlights current events from around the world that indicate all is not well.
(note this video is over an hour long so you may want to bookmark it for later)
Don’t get me wrong my barrel is half full and I hope that these doom and gloom SHTF scenarios and prophecies do not come to be. But if you’re only prepping for the non-catastrophic events your leaving yourself short. Want more evidence?
Well then consider that although just one of the following current events in itself may not be enough to tip the scales. The potential domino effect that these events could cause if they escalate in the wrong direction should indicate to you that it can’t hurt to be prepared.
- Russia ( where do I start?)
- Syria – Chemical Warfare
- US, UK and French Activities in Syria
- Catalonia – Civil Unrest
- Global Warming
- North Korea
- South Africa – Drought – Day Zero?
- Brexit – Europe, Civil Unrest?
- Doomsday Clock – It is now two minutes to midnight
Ok so now I have made my case for taking potential SHTF scenarios seriously let’s take a look at why Bitcoin is not going to help you if the worst should happen.
You cant physically touch, trade or barter with a digital currency such as Bitcoin and other cryptocurrencies. They are virtual currencies that rely on the digital world. They need computers and use encryption techniques to regulate the generation of units of currency and verify the transfer of funds from place to place.
So in a SHTF situation even if you have the best power backup solution in your arsenal its likely that a SHTF event is going to seriously affect the internet and everything else that these virtual currencies rely on to work.
For example, an economic collapse or a cold war would most definitely negatively affect the internet and the electrical grid.
Also, ask yourself this question:
Are you really that confident that Bitcoin would still function in the event of a societal collapse?
Not Easily Accessible
SHTF events can come out of nowhere and escalate very quickly. We have already established that Bitcoin is not tangible. To realize your asset you going to need to use a digital exchange method to convert it into usable cash. This process will involve a digital transaction between you, your Bitcoin account and your bank. This process is not going to be smooth, quick and most likely not possible at all if the SHTF.
Bitcoin and other cryptocurrencies prices are defined by the supply and demand model and are driven by many external factors. Such as the rate of adoption, bad press, security issues, investments from countries that have high inflation, fraudulent transactions, tax implications and opinion on its intrinsic value over the longer term. All of these factors can negatively affect their price causing volatility.
You no doubt have heard the term Bitcoin Bubble and some predict that this bubble will burst. Ask yourself do you really want to invest your hard-earned money into such a high-risk investment method.
A Target For Hackers
Hackers worldwide are increasingly targeting Bitcoin resulting in the loss of millions. It’s reported that In one such occurrence last year hackers made off with around 4,700 Bitcoin from a leading mining service.
We’ve already established that Bitcoin is extremely volatile so it’s difficult to put an overall cost to hackers overall gains to date. However, it is estimated that in this single example which involved a mining exchange called NiceHash the amount stolen was worth about $80m.
Whilst there are security measures you can put in place to reduce the chances of being hacked. We have to accept the fact that Bitcoin data is held in databases and encrypted or not Hackers are clever people who will often find a way to circumvent security measures.
Looking at it another way, you can put all the locks you want on your doors and windows but if a burglar wants in they will find a way to smash their way through.
When a Bitcoin millionaire tells us not to invest in Bitcoin it has to tell us something. In his recent article entitled Bitcoin millionaire: Don’t invest in bitcoin Grant Sabatier talks about why he doesn’t recommend investing in Bitcoin today.
And it’s not just Grant who feels this way many other financial experts are predicting that Bitcoin will fail in the future. Speaking to Fortune.Com the former head of the Federal Reserve Ben Bernanke says he doesn’t think much of a digital currency that operates outside the control of central banks.
In an interview with CNBC billionaire investor Warren Buffett said that the recent craze over Bitcoin and other cryptocurrencies won’t end well. Stating the following:
In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending
The List Goes On
There are many other reasons why in my opinion Cryptocurrencies are not suitable for emergency preparedness and why there is a high chance of their bubble bursting.
As it gets harder to mine the currency more energy resources will be needed and it’s likely that governments will step in and regulate it. Much like whats happening in China currently.
If your still not convinced take a look at this article entitled 10 Reasons Why Bitcoin Will Fail.
Why Bitcoin Is No Good For SHTF Preppers – Conclusion
To those preppers that are investing in Bitcoin as part of their emergency preparedness strategy. I say each to their own.
However, I certainly will not be going anywhere near this digital currency if you can call it that. I would rather invest in tangible goods that would be of use to me in a SHTF situation whether it be for trade or self-preservation.
If you’re looking for a tangible currency in the event of economic collapse or any other event that forces us off grid whats wrong with gold and silver?
After all, historically they have always been tradable currencies right through the ages. For example, in 564 BC the first international gold currency was created by King Croesus.
Through improved gold refining techniques he was able to mint the world’s first standardized gold currency.
So should you invest your prepping dollars in Bitcoin? Well, I’ll leave that up to you, just make sure you do your research and make an informed decision.
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