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I'm worried by the increasing number of reports talking about what they say is going to be a huge crash.
I'm living in Ecuador right now and gold is difficult to come by. I'd like to think I'll be ok if I just move my remaining money over to Bitcoin when the crash starts to happen, but I don't know if this is a sound strategy or not.
Are you preparing for an upcoming crash? Or are you thinking like I am and will you just move your remaining money to Bitcoin when the time comes? I can't see why it wouldn't work, but that is why I thought I would ask.
Thanks for your help!
follow me @trevorlyman
One idea is to open an account on vaultero.com. You can use BTC to buy allocated gold which is owed by you and physically stored in a vault in Switzerland. When you need to spend it, you can sell the gold online for BTC and move it back into your wallet. As a store of value, no one can argue with gold, but as a practical currency in a crisis, BTC may prove its worth next time TSHTF, as you say.
the thing i do not like about "saving in gold via gold accounts" is that when you buy it direct through a dealer it tends to be a lot cheaper than opening one of these new gold savings accounts to buy gold.
perhaps its safer to diversify into gold/silver/bitcoin. since we appear to be heading towards a cashless society then perhaps bitcoin has a role to play(there are also bitcoin debit cards) and gold/silver are historically hedges against bad economic climates
Don't know what you mean by "saving in gold via gold accounts"... I'm talking about buying ACTUAL gold and storing it in a vault. There is a fee to purchase, probably around 0.5%, as well as an annual fee for storage costs (about 0.5% a year). Whether you consider that expensive or cheap depends on your point of view. I view gold primarily as insurance, a form of sound money and as a hedge against inflation and fiat currency collapse - not as an investment per se.
you can now save in gold by having a gold (physical) savings account ( https://www.goldmoney.com/bitgold ) where you buy a small or large amount of gold each month and the physical gold is added to your account- and the $£ value of your account fluctuates with the spot price of gold
Both have their virtues, as mentioned by stevescoins. Good to hedge one's bets with both. Silver is also worth consideration as silver coins -with their lower value- would be more practicable for trading on a day-to-day basis should the unthinkable occur.
Don't wait.
I have gold and silver. I only recently got into bitcoin. But don't wait to get some... because then... it might be really $expensive$ to get some with your low-value money...
Just my advice.
But physical is better than digital IMO. You have it with you. It's not digital virtual currency.
Take care. Peace.
Interesting topic. I think it depends on how BAD the SHTF.
If there is still a large community ( or preferably communities, in the plural), that uses computers and has the web still up, then BTC is the choice.
If you think the S is going to HTF with a greater effect, then gold.
FWIW, I would go w/ guns, ammo, food, water purification/storage, and a defensible place to live first.
Thanks for your thoughts @stevescoins I feel pretty confident that the internet won't go away no matter how bad things get. Not 100% confident, but maybe 99%? ha What odds do you give it?
So here is another question for you....how high do you think the price of one Bitcoin might go?! Does anyone think it could go up over 1 million (in terms of today's purchasing power)? I mean, we're talking about a domino effect/global economic collapse! Isn't that what they say is coming?
The problem with estimating future prices is that the variables are unknown. Of course, you could plot a range of scenarios, and guesstimate how prices for each might turn out for each different scenario. Then you could determine how much to invest in either gold or btc or a balance of both, as pdclenton suggests.
In these scenarios you have to predict how local markets will be formed; for example, we know that btc gets a good deal of value due to it's use in underground drug markets. If SHTF, then drug purchases probably will be made locally. If that were to happen btc would lose some value.
Next you have to balance scenarios; suppose btc goes down b/c people buy recreational drugs locally in trade for food, but also consider that other factors could drive btc up at the same time, such as the local warlord demanding that cash be kept in "his" bank.
I will restate that a serious investment will be in personal supplies. In the US, there is either a 7 day or a 3 day supply of food is kept at the local market. If the food supply chain is distrupted, and if you DONT live on a farm, you are going to need food. Think along the same lines for water storage/supply/purification. Medical supplies, toilet paper, and alcohol. Alcohol can be used medically and recreational, and I have quite a few bottles of cheap ass vodkee set back. Weapons to keep your personal and trading stash secure. Last note. Dont sell ammo unless you absolutely trust the buyer.
You have a whole range of how bad SHTF could get, and additional ranges of other problems/opportunities that develop.
When you're talking about the price of BTC, or anything else for that matter, you need to recall that price is a ratio in relation to a denominator, and the value of the denominator is critical. Rising price of BTC is just the flip side of a declining value of fiat money. If you foresee a huge increase in the dollar-denominated price of BTC, you are really anticipating a dollar collapse, and therefore a collapse of the financial system built on the dollar as the global reserve currency. I think a hyper-inflationary surge and a dollar collapse is a possibility. How far the dollar price of BTC rises depends on how hard the dollar falls. All asset prices would rise in dollar prices in such a scenario, but especially "hard" assets like gold & silver, certain real estate and cryptocurrencies with a compelling use case and a sound monetary policy.