Due to the Corona Pandemic, the state of the world is very unpredictable right now. Among many things, it’s hard to know what to do with your money & assets.
If you haven’t already, should you sell off all your stocks? Is it the best time to buy in? Should you pull out all your cash from the bank? Stories of withdrawing restrictions are already surfacing. Is now the best time to put money into Bitcoin? If it is, why did it crash like everything else? Is gold turning out to be the best option?
I don’t have the answers to these questions. I’m not a financial advisor and I’m not giving investment advice here. My goal is to provide you an avenue to protect your own sovereign if & when shit hits the fan.
Why Bitcoin is a safe haven
As much as I want Bitcoin to go up, I have a greater desire to have Bitcoin used as a currency. For that to happen, it needs to have less fluctuation in price. Though it doesn’t mean you can’t use Bitcoin as your safe haven until then. Just be prepared that a safe haven does not necessarily mean it’s the best monetary investment.
A safe haven is something that provides “a place where you are protected from harm or danger”. When referring to a currency, a safe haven is interpreted as "an investment that is expected to retain or increase in value during times of market turbulence”.
There is a misconception that Bitcoin as a safe haven means that it’s a safer investment. When traditional markets plummet, some believe Bitcoin should go up or stay steady. I do not see Bitcoin as a safe haven currency measured by those metrics. I see Bitcoin as a safe haven protecting me from the higher powers in the long game of ruling the monetary system.
Governments are now moving to negative interest rates. The US is printing a trillion each day in Repo operations. The Feds said over the weekend they have ”an infinite amount of cash”. Gold is even plummeting in price, though not hit as hard as the stock market. Unfortunately, we CAN NOT transact in Gold. Unless you are a government or a bank, you will not have self-sovereign access to Gold as a currency. You can thank Executive Order 6102 for that.
Bitcoin is a safe haven for me because the supply cap can’t be inflated. It can’t be forged. It can’t be taken down without substantial resources. It will outlive your stocks. It will outlive the currency in your hands. It will outlive you and your children. It will outlive this fucking virus.
The next time someone points to Bitcoin and says it’s not a safe haven, pull out a dollar, rip it up, and ask “And this is?”
Like most things, “safe haven” is not a binary expression nor is it absolute. Anything in the world can happen. Life is a randomly generated game of risk assessments you have to make. My financial life (10-50 years+) is hedging on Bitcoin. What’s backing yours? Your recently-plummeted 401k that, at the end of the day, is held hostage by the Feds?
Bitcoin as a currency
I’ve been increasingly asked about buying Bitcoin, which I don’t mind. I’m always willing to have this conversation. It’s getting easier for me to drive the points people seek while informing them about the nature of Bitcoin. Plus, it helps me gauge global interest. The first signals of a Bitcoin bull market are when friends & family get interested in it.
You don’t need a post-apocalyptic system to further your journey into self-sovereign currency. Starting small, choosing the right storage methods, and knowing the process for spending your Bitcoin should suffice. There’s a huge variety of tools to accomplish this and to be honest, maybe too many. Loli, Bisq, River Financial, Purse, Fold, & Strike are some of my go-to’s right now.
Stayed tuned for a new guide breaking down “Bitcoin as a currency”. I will be starting from scratch and end up showing you how to buy toilet paper at Target with Bitcoin, if you can find some. My goal, both for myself and for you, is to get into the habit of using Bitcoin as a checking account. Hit the subscribe button below if that interests you.