In Preparedness Tips and Advice

Introduction

Covid-19.  Elections that will more than likely spark a civil war.  Food shortages.  And, would you believe, fiat coin shortages?  It’s no secret that Covid-19 has exposed numerous political, social, and financial problems worldwide.

 Here are some questions you need to ask yourself:

  • How are you going to continue buying goods and services in a world where fiat currencies are limited or not available? 
  • If you don’t have spendable fiat money, where are you going to obtain goods and services that are only available from overseas or other distant locations? 
  • How will you manage investments and secure any savings you might have? 
  • What will you do when the banks close and you can’t access your money electronically let alone physically?  

Given the current situation, there is only one clear answer to all of these questions.  You will need to find another medium of exchange that doesn’t rely on a centralized government and the currency it issues.  In this case, the medium of exchange is Bitcoins.  Have a look at the advantages you will gain from having a Bitcoin wallet all set up and funded for use.

Avoid or Mitigate the Impact of Bank Holidays and Currency Devaluation

You may not be old enough to remember the Great Depression.   Financial problems went well beyond the stock market crash and people jumping out of windows because they became impoverished overnight. 

Before his election, several people suspected that President Franklin Roosevelt was going to devalue the dollar.  As a result, there was a run on the banks and a rush to convert US dollars into foreign currencies and gold.  

In March 1933, President Roosevelt shut the banks for several days to slow down the run on the banks.  Through a series of legislative actions, Roosevelt also changed the basis for USD from gold to paper.  Even though this meant the treasury could print more paper notes, it had the effect of causing the dollar to lose value.   In 1933, the immediate devaluation was around 40%

What does that mean? Let’s say you had $100.00 in your bank account before the bank holiday.  If you went to the bank after the devaluation, you could only get $60.00.   At the same time, the cost of food, utilities, and other bills remained at the level they were at before the devaluation.

Right now, you may be thinking that Bitcoin is also susceptible to devaluation. While it is true any currency, including cryptocurrencies, can lose value, the situation today points to something very different for Bitcoin.

Unlike Roosevelt’s action that enabled more money to be printed, there are a limited number of Bitcoins.   As a result, the value may go down, but as long as there is a demand for them, their value will go up.  This, in turn, means you will have more buying power.  We have seen this several times over the years with Bitcoin crashes and subsequent recoveries. 

As governments become more unstable, people will flock to Bitcoin and other cryptocurrencies. Since the faith in Bitcoins will increase in times of economic upheaval, they make the perfect hedge against bank holidays and devaluation occurring in fiat currencies. 

Protect Yourself from Inflation

It is fair to say the food is on most people’s minds these days.  Millions of people in the United States are relying on food banks because they have no jobs, or they cannot get unemployment benefits.  On top of that, farmers and food production plants are unable to process foods because they can’t ensure the safety of their workers from COVID.

Have you noticed that potatoes and other vegetables are very expensive now? What you may not know is that farmers in the United States plowed under millions of pounds of potatoes and other vegetables because the COVID crisis prevented them from harvesting.  Same deal with milk production.

Some say meat is also being destroyed or sold overseas for a profit even as our shelves are left bare because of Covid’s impact on the processing plants.  As a case in point, Smithfield Foods (which is actually owned by China), and Tyson Foods both increased exports of pork to China even as prices soar and availability plummets in the United States.

If you keep buying potatoes, or other goods and services using US dollars, your cost will continue to go up.  Now, let’s say you have some money in Bitcoins.  If the Bitcoin has more spending power than the fiat currency, the cost will be less for the potatoes.  This idea is borne out by observations of others looking at inflation and currency values from a more purely financial perspective.

According to Vincenzo Furcillo, a risk officer and equity investor, the value of the dollar will continue to decrease.   Others claim the US dollar has lost 96% of its value since 1913.  Given the current situation with COVID, Furcillo claims that inflation will get even worse because of all the money the government is injecting into the system.  Bitcoins represent a viable means to preserve your buying power because people worldwide have increasing confidence in Bitcoins vs fiat currency.   

Increased Privacy 

These days, you can’t walk into a store without a camera following your every move.   The increase in facial recognition technology means that your image can be tied to all kinds of other information about you held in various government and non-government databases. 

To add insult to injury, when you use a credit or debit card, all of the transactions go through a limited number of clearing houses.  As a result, it is fairly easy for the government or anyone with access to these databases to find out what you are buying and from whom.

Years ago, people thought nothing of this lack of privacy.  And then they found out that the government and various hackers are in fact, looking at all kinds of data related to lifestyle, background, and spending choices.

It is no secret that there is growing unrest in the United States.  Federal forces are on the ground in Portland Oregon to try and quell what they refer to as “violent unrest”.  President Trump has said he will also send federal forces into other cities experiencing violent upheaval. 

The president does not use the term “martial law”, and seems to have stopped short so far from using it.  Many people suspect, however,  it is only a matter of time before the inability of the police to maintain social order will result in an official declaration that the military will do the job. 

Martial law is never a good thing.  At the end of the day, it is a signal that the government is desperate to restore social order.  Without a question, there are many reasons why this time in our nation’s history is so dangerous; and why aggression is likely to be met with more aggression in ever-increasing spirals; just as we saw in Syria before their civil war. 

Over the years, more than a few people have gone from storing away a few extra cans of food for a rainy day to actively stockpiling a range of goods that will last for years. In these times, being a “prepper” has gone from a fringe activity to one that is catching on across all ages and political spectrums.

On the other side of the equation, there are laws in place already that allow the government to seize goods it deems of value in the event of an emergency.  In a population of over 300 million people, it is both difficult and time-consuming to go door to door looking for stockpiled valuables.  

When the government has well-organized databases full of money trails to look at, it becomes very easy to spot people that have a stockpile worth seizing.  To add insult to injury, there are, no doubt, some very talented hackers tied to terrorist networks and sleeper cells right here in this country.

We have seen time and again that banks, credit reporting agencies, and others can and are often hacked in a way that compromises sensitive information.   In a crisis situation, these people will also be looking to take anything they perceive as valuable for the leverage of their own interests.

As with the government, all these groups have to do is follow the money trail to identify people with stockpiles worthy of capture.  And, from there, all these people have to do is send agents to the location of interest and then take anything they want.  This is why securing an anonymous data trail from vendor to buyer is a critical first step to keeping your stockpile safe.

With Bitcoin, it is difficult, but not impossible to avoid creating that paper trail governments and others can use to find out about your spending habits.  Here are the basic things you need to do. For each step, you may need to use one or more services to achieve your goal.

  • First, make sure that you are using an IP address that can’t be linked to you.
  • Next, make sure the Bitcoins can’t be traced to you.
  • Last, do not have items delivered in your name or to an address tied to you.  You can use all kinds of drop off services for this.

Can be Used All Over the World

Have you ever thought about leaving home during a crisis, or as preppers call it “bug out”?  Chances are, you have thought about leaving in case of a fire, hurricane, or other local crisis.  Being ready to bug out takes a lot of financial planning even if you plan on staying in your native country.

Many people believe that the United States is the ultimate place refugees want to reach in a time of need.  Right now, we are living in times where people in the United States are actively thinking about moving to other nations because of deterioration in societal safety and other matters.  It may be hard to see yourself as a refugee.  But the fact is many people in the world didn’t see it in their future either. 

Even though other countries are limiting access to US citizens because of the poorly contained COVID pandemic, there are still some people that may be able to leave if they wish to, and can afford to do so. If you have all your money in fiat currencies, their collapse may prevent you from traveling.  By contrast, when you have your money in Bitcoins, you will still have its full buying power. 

Buy Goods and Services Worldwide

After Nixon normalized trade with China, businesses left the United States in droves.  While economists and others have been sounding the alarm for decades, the COVID crisis drove the fact home that our country is bereft of key factories and infrastructure.  From PPE shortages to drug shortages, everything points to the outsourcing of key industries and businesses to China.

It will take years before US-based businesses can achieve lower price levels and quantities available through Chinese businesses. During that time, the limited goods available to US consumers will also contribute to inflation because limits on goods of interest increase demand.   

Did you know the United States also imports a lot of food from other countries? Early on in the pandemic, some countries limited the export of foods like rice and wheat.   Even with export restrictions in place, you may still find private people or businesses in those countries that will sell to you.   Chances are, these people will not want to use fiat currencies.  They may, however, be perfectly happy to accept Bitcoins. 

Conclusion

Each day, there is troubling news about COVID, social unrest, foreign affairs, and the upcoming elections.  No matter which of these shoes drops into a more critical situation, it can have massive impacts on fiat currencies here and abroad.  By contrast, Bitcoins are not controlled by a central government.  As a result, they offer a safer haven than other currency options.  Opening a Bitcoin wallet and funding it is easy to do. Even if you set just a little bit of money aside, you may be surprised at how handy it will come in someday.

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