The prepping world is complex. It’s always associated with apocalyptic catastrophes and over-the-top disaster plans. But the truth is, rational, down-to-earth preppers aren’t interested in a dramatized SHTF scenario where they play the Rick Grimes to the world’s Negans.
On the contrary, a real prepper is interested in, well, prepping. They want to be prepared for the worst in all areas of life. This is where cryptocurrency can be a huge help. Here is a quick rundown on several of the top reasons preppers should consider crypto as a portion of their prepping activities — along with a few things to watch out for.
Crypto is the New Gold
For many, financial prepping is based on security. Things like printed currency and fiat money can inflate and deflate in value based on the whims of a politician or a vote in Congress.
Crypto, though, is limited. It often has a capped value, like Bitcoin which only has 21 million coins in existence (mined as well as unmined.) This makes it much more interesting as an investment. In essence, its limited nature makes cryptocurrency a sort of “digital gold,” a flattering term that many in the industry have come to use fondly.
Even if you invest in something like Dogecoin, which doesn’t have a set amount of coins in circulation, you’re at least free from the whims of government bureaucrats. Sure, the value may swing based on market demand and news cycles, but it isn’t tied to political platforms.
Crypto Can Diversify Your Financial Prep
Adding cryptocurrency is also a great way to diversify your portfolio. If you’re a prepper, chances are you try to avoid an overdependence on things like plastic credit and digital banking. These are systems that are dependent on a larger power grid and distant servers, all of which are out of your control.
Stockpiling things like gold, silver, and paper cash are classic workarounds to this financial weakness … and so is cryptocurrency. Admittedly, crypto is also dependent on an online connection in many cases. However, if you download your holdings into a hardware wallet, you can literally store them right alongside your gold and silver in your safe.
As a quick aside, this ability to stow your crypto “offline” is also a great cybersecurity bonus that can help you rest at night.
Crypto Can Appreciate in Value
Finally, don’t forget the fact that owning crypto can be an investment all on its own. Along with the security and diversity benefits that it provides for your finances, it can also give you more money to use for your prepping activities.
A lot of the elements of prepping can require a significant amount of upfront capital. Food storage, water purifying devices, solar panels, and other off-grid investments add up quickly. Investing in crypto has the upside of helping you pay for these items, avoid compiling debt, and even keeping your credit in good standing. This opens up a slew of financial benefits — many of which are critical elements of financial preparedness, such as higher chances of loan approvals if and when society rebuilds.
The Downsides of Crypto in Your Prepper Portfolio
When cryptocurrency is brought up in a negative light, it typically revolves around two things: unstable prices and energy usage. We already addressed the former and why it shouldn’t be a major concern for preppers — especially when fiat money is the alternative.
However, the energy usage associated with the crypto market is certainly a concern. This has led to major declines in the value of cryptocurrency, such as when Elon Musk criticized Bitcoin for its “rapidly increasing use of fossil fuels.” Many preppers prioritize things like sustainability and personal energy independence, which is the ability to produce the amount of energy needed for all power needs. The energy used in transactions and mining goes directly against the efficacy of this financial model.
Along with these more high-minded, universal concerns, there are a few personal considerations when it comes to your own financial prepping. For instance, in a serious emergency, there’s a good chance that you won’t be able to immediately access your cryptocurrency.
Even if you can get your hardware wallet back online, there’s no guarantee that it will hold its value in every scenario — or even be useable as a legitimate form of tender. Metaphorical money isn’t the same as a lump of gold — or ideally, silver — that you could use to barter with in a pinch.
While there are plenty of upsides, it’s important to realize that you’re taking a risk if you prep with crypto. And for all the reasons listed above, it should never be your primary investment.
Considering Crypto as a Prepper
Recent disasters like the Great Recession and the COVID19 pandemic taught us that prepping needs to go much further than the end of the world. It also showed us that everything from food to energy to toilet paper needs to be factored into the equation.
Finances also remain a critical piece of the prepping puzzle. The novel “digital gold” offers a host of benefits for any avid prepper, and while it comes with its downsides, for the time being at least, it seems like a great move to add some crypto to your prepping portfolio.