Chances are you’re aware of the cryptocurrency craze that’s been going on lately, but maybe you’re not sure if they’re a smart investment.
It’s understandable why many preppers are cautious about investing in cryptocurrencies. Their electronic nature makes them difficult for non-techies to understand.
Plus, there are so many of them to choose from that it’s difficult to get enough information to make a smart move. Some are good, some are bad, and some are downright scams.
Whether you should buy cryptocurrencies or not depends on your specific financial situation and your ability to understand and accept risk.
First, let’s take a look at what cryptocurrencies are and what their true value is.
The True Value of Cryptocurrencies
What gives a currency its value? It comes down to supply and demand. This is the same whether we’re talking about national currencies or cryptocurrencies.
The major difference between national and electronic currencies are the people controlling them.
The value of a currency is determined by supply and demand, but governments can influence the value of their currencies by manipulating interest rates and printing money.
On the other hand, cryptocurrencies are much more decentralized, which means they can’t be manipulated by the government.
In other words, the value of a cryptocurrency is a true reflection of supply and demand. Its value is whatever people are willing to pay for it at the moment.
Their prices in dollars fluctuates according to the market just like any other volatile investment.
However, the real value of cryptocurrencies is that they’re difficult for the government to regulate. Sure, the government is trying as hard as it can to regulate them, but it’s impossible for them to ever have complete control.
For preppers, this freedom from the prying hands of the government is a compelling reason to consider investing in cryptocurrencies.
Which Cryptocurrency is Best for Preppers?
Anyone can create a new cryptocurrency, and new ones are being created every day. Last time I checked, there were over 900 available and growing every day.
With so many possibilities to choose from, you may be wondering which is the best one for preppers to invest in.
Preppers only need to be concerned with two major points when it comes to investing in cryptocurrencies: long-term stability and popularity.
Some cryptocurrencies are merely fads. They rise in value with media attention and then shrivel away into obscurity forever. Preppers need long-term stability because we’re relying on it to be there for us during hard times.
Popularity is also very important because it allows you to exchange your currency for goods. If you have a large amount of cryptocurrency that nobody accepts, then it’s useless.
Here are the top three cryptocurrencies for preppers.
#1 – BitCoin
BitCoin is the original cryptocurrency, and has been the most popular one for many years now. When you see news reports about cryptocurrency, they’re usually talking about BitCoin.
BitCoin’s source code is what’s known as “open source,” meaning anyone is free to make improvements to the code. This means it’s always becoming safer and more stable.
It’s also decentralized, so governments can’t shut it down even if they tried.
BitCoin is becoming more mainstream every day. Many stores accept BitCoin just like they accept cash and checks.
Survival Frog accepts BitCoin for all transactions because we know how important cryptocurrencies will be in the future.
BitCoin’s stability and popularity make it the number one choice for preppers looking to get into cryptocurrencies.
#2 – LiteCoin
LiteCoin is like BitCoin’s younger brother. It functions very similarly to BitCoin, but it uses a different algorithm and functions faster.
The LiteCoin community is also more unified, potentially giving it more long-term stability.
LiteCoin has historically been less volatile than BitCoin, rising and falling much more steadily. This is a great crypto for those who are afraid of investing money in something that changes as rapidly as BitCoin.
#3 – Ethereum
Ethereum is different from most other cryptocurrencies.
First, it’s not decentralized. It’s owned by a Swiss company, which exposes it to interference by national governments. However, this also allows it to make improvements faster.
Second, what makes Ethereum special is that it’s known as a “smart currency.”
This smart currency technology has the potential to give Ethereum practical uses beyond just sending and receiving money.
Downsides to Investing in Cryptocurrencies
Cryptocurrencies aren’t a perfect investment. They have some problems, but you can minimize the downside by understanding the risk and taking precautions ahead of time.
Remember earlier when I said anyone can create a new currency? It’s true, and some of these new currencies are complete scams.
They get created and then promoted so the price rises, and the creator can cash out at everyone else’s expense.
This is easy to avoid by simply sticking to currencies that have a significant track record. If you stick with the three recommended currencies listed above, you’ll be able to avoid this threat completely.
Another potential downside to be aware of is that cryptocurrencies are electronic, meaning they can be hacked and your investment stolen.
However, this doesn’t sound so scary when you realize that the same thing is true of the current monetary system. Even with U.S. paper dollars, you could still lose everything overnight due to an out of control government and a financial hack.
Also, because the value of a currency is determined by supply and demand, there’s always a chance you could lose money on your investment.
Everyone’s financial situation is different, and I can’t give you financial advice, but in general I think cryptocurrencies are a good idea for preppers if you understand the downsides.