Every time there is war between two countries, there are consequences that the whole world must deal with. With the recent conflict between Russia and Ukraine pushing up oil prices, people may now worry about their assets, such as cryptocurrencies — and whether these or other assets are worth storing.
In addition to the Winter Olympics, the world’s attention recently may be the conflict between Russia and Ukraine.
This time around, global financial markets tumbled, and Bitcoin tumbled, dropping as much as 9% at one point. So when wondering about the decline of cryptocurrencies, many people are also more curious.
When war breaks out, how should we survive, how should we protect our property, and what preparations should we make? For example, should we keep cryptocurrencies like Bitcoin?
1. Crypto Assets
Due to its unregulated, decentralized and other factors, cryptocurrencies have become an investment choice for many emerging generations in recent years.
In any country there will be a group of cryptocurrency proponents willing to trade cryptocurrencies with you. At the same time, the most important advantage of cryptocurrencies is the ease of registration.
One of the ways to get cryptocurrency is through mining. At present, the mining machines with considerable income include Ant S19j Pro, Ant L7, Innosilicon A10 Pro, etc.
While cryptocurrencies such as Bitcoin can provide a store of value for users and are resistant to inflation, cryptocurrencies must rely heavily on the Internet to function properly.
Suppose the other side destroys basic power and network facilities in a war. In this case, it can be relatively difficult to pay with cryptocurrencies and you can store value first.
Broadly speaking, commodity trading is mostly fiat currency and disaster barter. By contrast, fiat currencies are mostly paper money.
In short, paper money was always critical in wartime given the existing Warring States financial blockade and the inflation that could result from over-issue of money.
Therefore, the use of paper money is not as important as barter transactions. At present, the currency unit is only a tool for the conversion of commodity value. This approach is relatively rare.
Gold has been used as an essential element for asset preservation since the inception of human society. Many gold-based cultural relics can be unearthed in a large number of famous cultural relics, which also proves the popularity of gold in most countries. The main reason for this is the gold store of value function.
Gold’s so-called store of value has been around for thousands of years, so it’s still considered an important store of value. But, of course, gold’s flaws are also evident.
Inconvenient to carry and inconvenient to trade in wartime. So you can’t buy gold with gold during a war unless there is a big premium.
3. Diamonds and gems
Diamonds are the second largest commodity in the world after gold. Although diamonds and gemstones are also love add-ons that are hyped all over the world, it has to be said that the audience of diamonds and gemstones is still very high. As an asset storage medium, diamonds and gemstones are also an essential element option.
Of course, diamond grading already has its own set of well-established criteria compared to gemstones. In addition, synthetic diamonds have developed rapidly in recent years.
In some respects, they may be purer and more standard than natural diamonds, even to the point of problem distinguishing machines. Therefore, if you want to use diamonds to preserve value, you should think carefully.
4. Collection of cultural relics
Cultural relics, calligraphy and painting are also necessary conditions for preservation of value in wartime. This part is a relatively alternative way of storing value. The main issue is protection and identification.
War and chaos can easily lead to poor preservation of folk cultural relics, resulting in the risk of poor quality, depreciation or even damage.
At the same time, the cultural relic collection market also has problems such as insufficient liquidity and serious fraud.
However, due to its unique rarity, war would further reduce the number of artifacts, so it’s certainly valuable to have survived. Once you wait for peace, its value is also invaluable.
4. Investment products (stocks and bonds)
Let’s say it’s investing in stocks and bonds in a war-torn country. In this case, such investment is risky, because once the government changes, such investment in the past will be zero, such as the nationalization of certain companies, etc.
As a result, the stocks and bonds in the hands of investors are likely to be worthless, which is an important reason why the global stock market will plummet once a war begins.
And, in the Russia-Ukrainian war, if you hold Saudi crude oil assets or Australian iron ore assets, your overseas assets will be safe in a short period of time.
But the premise is that you must have a separate overseas account, so the bank is likely to fail due to the war, leaving that part of the asset unpaid.
All in all, if an individual encounters a scenario such as war, the first task is to stock up on various necessities.
Many commodity transactions are currently required, and basic material needs can be met using stablecoins in the form of cryptocurrencies other than U.S. dollar bills and fiat currencies.
Gold, diamond and artefact collections are suitable for intergenerational transmission, not for immigration.
It is natural for investment products such as domestic stocks and bonds to sell as quickly as possible; unless you are optimistic about war and conflict situations, you can also buy at the bottom.
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