How to Protect Your Downside Risk With Bitcoin and Gold
Are you prepared for a potential currency collapse or a large economic downturn? Most people haven’t even considered the possibility of such an event. How quickly we forget the events that happen just over 10 years ago when we had the largest dip in the stock market in over 75 years! This article will cover two such ways you can protect yourself from a potential collapse of the traditional economy.
What Are the Chances of an Economic Collapse?
I won’t try to speculate too much on how much chance we have of encountering an economic collapse in our lifetimes. History is littered with currency collapses in different countries throughout the world over the past century. While it is not likely, it is certainly possible. A currency collapse can mean total catastrophe if you are not prepared for it.
Traditional Way to Prepare for Economic Collapse
The traditional way folks have invested for the possibility of an economic collapse is by investing in physical gold. If a currency complete is destroyed in a matter of days or weeks, you will not be able to spend it fast enough before it becomes virtually worthless. Gold is a traditional human storage of wealth. It has been a highly prized material throughout thousands of years. Most people believe that in a true economic or currency collapse, humans will still value gold as a storage of wealth.
If you don’t want to exactly hang onto physical gold, but you’d still like exposure to this commodity, you have options. In the case of a downturn, having investments in gold with a company like Virtuse Exchange will see your portfolio rise. You can then capitalize on this by getting paid out and converting your investment into physical gold if you so choose.
Newfound Ways to Prepare for a Financial Downturn
With the advent of computers, many are turning to investing in crypto gold or Bitcoin. This really protects against a currency crisis. Some believe that the dollar, or other currencies, can be manipulated by the government to inflate over time. We know this to be true, and Bitcoin can help to protect against inflation because there are only a certain number of bitcoins which will ever be available. No more can ever be produced after they are all found.
Final Thoughts
While I hope we never see a large economic collapse or currency failure in our lifetimes, it is possible. As mentioned, we just saw a gigantic economic collapse a little over ten years ago with the Great Recession! Taking a small bit of your money to hedge against complete disaster is a wise strategy in my book. I think of it as a small insurance plan in case the very worst were to occur. What do you think?
