Bitcoin in the doomsday scenario

Wendy McElroy, a woman living in Ontario (Canada) is ready for every doomsday scenario she can come up with. In the cellar on the farm, canned foods and food for a year are carefully stacked. However, unlike before, now her survival plan depends on the Internet as part of her assets have been transferred to buy Bitcoin in case “civilization collapses”.

In other rural areas of North America, many people are doing the same thing as McElroy when trying to hoard their assets into digital currency instead of hiding gold and money in safes in the basement. Although they will not be able to access the network and use their virtual currency as soon as a disaster occurs due to reasons such as the electrical network or the Internet goes down, all believe that if survived, Bitcoin will be the thing. will overcome the collapse of economies, global pandemics, climate change or even nuclear war.

“I see Bitcoin as a currency that equals gold,” McElroy said. “It allows individuals to become autonomous spending. When I fully understood the concepts and their meanings, Bitcoin became a passion. ”

According to Bloomberg, it seems that the intuition of the most ardent Bitcoin proponents is of the view that in the future public infrastructure will be broken by social and political crises.

This is despite the fact that the virtual currency is not yet widely accepted as a payment method and its high transaction costs make it inconvenient to use it with providers. But thanks to the support of Bitcoin as the currency that can replace the USD or the euro in the future, its value has increased 10 times in the past 12 months.

Tom Martin, a truck driver from Washington who runs a website for people interested in survival skills to deal with bad times like economic or political crises (also known as preppers). , “Not long ago, people in the prepper community were actively warning about cryptocurrencies and now they are investing in it. To be able to survive the disaster ”.

“As long as the grid remains, people will continue to use Bitcoin,” he added.

In addition to gold, silver and stocks, Martin now invests in a variety of cryptocurrencies, arguing that they are easy to use when moving anywhere, harder to steal and provide better protection in the event of a social breakdown, especially when the dollar collapses. He believes Bitcoin can withstand all pressure through the power of blockchain technology, an anonymous and public ledger that records every single bitcoin transaction.

Discussions on the pros and cons of investing in cryptocurrencies have appeared on survival forums this year, as bitcoin started to rise above $ 7,000. “Buy Bitcoin” is now a more popular search term than “buy gold” on Google. This may be the reason why US gold coin sales have dropped to a decade low, in just the first three months of 2017. And bitcoin supplies are starting to appear alongside metal transactions. precious type.

This, for sure, has an impact on the market, said Philip Newman, who studies precious metals trading and is one of the founders of research firm Metals Focus. “People see the price of Bitcoin rising like flying to the moon. No one thought gold could do that. And to attract investors, a number of digital assets have been developed alongside physical gold.

A chart comparing the prices of bitcoin and gold over the past few years.

However, many people still find it difficult to imagine that people will spend virtual currencies on food or bottled water at supermarkets when their home has no electricity to charge smartphones or connect to the Internet.

“I doubt Bitcoin can be a safe haven in a risky environment. Bitcoin is not gold, ”said Charlie Morris, chief investment officer of the Newscape Capital Advisors fund.

“Bitcoin has also not reached large enough volumes to be considered an investable currency,” said Mark Haefele from global financial services firm UBS Group AG. “The total amount of virtual currency is not even the size to compare with a small coin”.

However, the “preppers” are not interested in this. They have enough food and supplies to sustain their lives for months, even years and can wait for a certain management structure to stand up after a disaster that will prioritize reviving the economy by virtual money.

“It may be difficult, it may be inaccessible for a while, but once things start to get back to normal the blockchain will be back to what it was before the disaster,” says Rob Harvey, Bitcoin investing is preparing for both natural and nuclear disasters by learning survival skills, like creating fire. “Blockchain doesn’t need a specific place or a specific person to exist. It’s a powerful survival tactic, ”he asserted.

Many people believe that when disaster strikes, bitcoin will save them and the world.

McElroy has faith in Bitcoin. She wrote a book entitled “The Satoshi Revolution”, inspired by the pseudonyms of the person (or people) believed to have created Bitcoin in 2009 with content like an answer to the financial crisis. global key.

She said the digital currency broke society’s dependence on a country that used its monopoly in issuing money to dominate its economy, making it a natural hedge against. natural disasters.

“It’s everyone’s money,” she wrote in the book’s introduction. “Bitcoin moves seamlessly through a world with no states or borders, obeying only the orders of the individuals who choose it to transact with each other. It is immune to currency manipulation and inflation, does not serve the powerful classes at a cost consistent with ordinary people.

 

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