According to a recent disaster preparedness survey, more than 75% of Americans are not ready with ample food or water supplies – even after going through COVID-19.

Experts recommend that you have $2,000 of cash in case banks fail. However, the U.S. Federal Reserve reports that nearly 40% of Americans couldn’t handle a $400 cash emergency. If disaster strikes, it makes good sense to ensure that you have enough money, food and water.

There are many types of crises and disasters. Natural disasters such as the spreading wildfires we’ve seen this summer across California or hurricanes ripping up the U.S. eastern coastline have caused mass evacuations. Last year’s experience shows that civil unrest, or even a pandemic, can cause families and individuals to be placed in protective lockdown.

There is also the risk of economic collapse. Consider the consequences if a country’s currency turns hyperinflationary, or supply chain disruptions cause prolonged stock outs at stores, or if there’s a repeat of the 2008 housing collapse that spread globally – producing an extended economic crisis, which can be just as dangerous as any natural calamity.

Would it make sense to keep some of your investments in cryptocurrency, as well as cash, food and water, for all these scenarios and any other macro-level crises? The answer is yes – but it’s a qualified yes (besides the most important disclaimer that this is NOT financial advice).

Here’s why:

Scenario 1: SHTF aka Mad Max Post-Apocalypse

We need to remember that mass adoption of cryptocurrencies is still several years away due to price volatility, regulatory scrutiny, and technical complexity. So in a “S**t Hits the Fan (SHTF) scenario” where economic upheaval occurs or society breaks down, not everyone is going to universally accept cryptocurrencies as a method of exchange. Cryptos are likely to be useless in such circumstances.

In a “Mad Max” type of scenario, it’s better to have skills to barter such as woodworking, nursing, butchering, clothes and shoe mending, small engine repair, candle and soap making, etc. Also, it might be less valuable to have fiat currency.

Perhaps the best option to consider from a “currency” perspective would be having a pre-supply of hard goods such as various size bandages, matches, candles, disinfectants, soaps, shampoos, zip-loc bags, toothpaste and toothbrushes, socks, large garbage bags, bottled water, plastic flatware, paper plates, toilet paper, aluminum foil, plastic tarp, zip ties, duct tape, and hand tools. These items have many uses and are of greater value in an emergency situation.

If the power grid goes down, it will be difficult – if not impossible – to access the Internet and subsequent crypto exchanges to remove your crypto and convert to dollars. Even if funds are converted and transferred to the bank, it is possible that your banking system will not work properly. It could even be temporarily or permanently down.

In that type of “worst case” scenario it’s a better idea to have a store of silver that can easily be measured in fractional ounces as a method of exchange, such as these Canadian, two ounce silver plates. Each plate comprises 19 silver “coins” featuring unique weights and multiple denominations that form two ounces of silver.

These silver “flex” coins are a solid store of value, have served as a trusted method of exchange for centuries, with a stamped unit of account in both troy silver ounces and dollar equivalent, which most everyone understands. In the SHTF scenario, cryptos will lose.

Scenario 2: Economic or Financial Collapse

Alright, enough dystopian dialogue – which is unlikely to happen anyway.

A temporary shutdown of the government, an extended recession or economic collapse within a country are more likely, which could send shockwaves through global financial markets.

In those instances, select cryptocurrencies such as and would be your best options as an extended store of value, with a stablecoin such as USD Coin as a preferred method of exchange and unit of account.

These crypto assets are able to be used in any peer-to-peer transaction or payment that operates independently from a government or bank, as long as they do not affect the electricity grid, mobile phones networks or Internet.

It’s best to have the bulk of your cryptocurrency assets off-chain, in a cold wallet storage such as a Trezor or Ledger hardware wallet – before disaster strikes. Also, be sure to keep those cold storage devices in a secure location that’s physically separate from your wallet recovery phase.

You can keep your cryptos safe from hackers by storing them in cold storage until you are comfortable with bringing them online. Avoid storing any non-stablecoin cryptos not in the top-10 market cap rank – people will only care about the major cryptos (if they care at all) during a crisis..

Scenario 3: Natural Disaster Evacuation

In any evacuation scenario, cryptocurrencies are arguably the best asset due to their discrete portability and easy mobility.

Whether it’s a hurricane, flash flood, chemical spill, nearby riot, tornado warning, bomb threat or anything else that requires you to leave quickly, your cryptocurrencies in a cold storage wallet are your best choice.

It can be hidden in a jacket lining, or plain sight by hanging it on a keychain. It’s simple to instantly move and hide literally billions in assets stored on one of those devices – try that with any other asset.

Simply move yourself and loved ones out of harm’s way, to an area with mobile phone service or Internet connectivity and you can access your cold storage assets. Make sure you don’t leave your recovery phrase in the disaster zone – otherwise your cryptos may never be unlocked if the recovery phrase gets destroyed or lost.

Disaster Diversification

Bottom line, no single asset is perfect for every disaster scenario. As with your investments, your “disaster assets” should be diversified and mobile.

It is possible for your most valuable assets to be lost or stolen during times of crisis. A bag of protein bars in the event of an extended global shortage of food will prove more valuable than an entire ounce of precious metal in just a few months.

A few weeks worth of food, minimum 2500 calories per day for each person and water at hand (minimum 1 gallon per person per day) is a good idea. Be sure to also have a mix of cash and easily divisible silver available for use, and cryptocurrencies in a cold storage wallet – don’t forget the wallet’s respective recovery phrase.

Cryptocurrencies might be a solid asset option if a crisis strikes – as long as the power stays on and Internet access is available.

On The Flipside

• Very few families or individuals are equipped for any type of protracted disaster scenario and have not thought about what they could do to prepare in advance.
• Currency and methods of exchange are one consideration – but not the most important especially if public safety breaks down, a government is overthrown, or a cataclysmic natural disaster occurs.
• In a disaster, the best assets are shelter, food, and water.

What are the reasons you should care?

We are falling into complacency, even though we have made it to the COVID-19 crisis. Too many people depend on the federal, state and local governments for help in times of crisis. What if government help doesn’t arrive or comes too late? You are your safety and help.

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