Whenever a war occurs between two countries, there are consequences that the entire world must deal with. The recent conflict between Russia and Ukraine has caused oil prices to rise, and people might now be concerned about their assets like cryptocurrencies, and whether that or other assets are worth storing or not.
Besides the Winter Olympics, what the world has been paying attention to recently may be the conflict between Russia and Ukraine.
This time around, the global financial market has dropped sharply and Bitcoin has dropped by a significant amount, dropping 9% at one point. So when we wonder about the decline of cryptocurrencies, many people are also more curious.
When war comes, how should we survive, save our assets, and what preparations should we make? For example, should we keep cryptocurrencies like Bitcoin?
1. Crypto assets
Due to its lack of regulation, decentralization, and other factors, cryptocurrencies have become the investment choice of many emerging generations in recent years.
There will be a group of cryptocurrency supporters willing to trade cryptocurrency with you in any country. At the same time, the most significant advantage of cryptocurrencies is that they are easy to store.
One of the ways to obtain cryptocurrencies is through mining. Current miners with considerable income are Antminer S19j Pro, Antminer L7, Innosilicon A10 Pro and others.
Although cryptocurrencies like Bitcoin can guarantee users’ storage of value and have anti-inflation features, cryptocurrencies need to rely heavily on the Internet to function normally.
Suppose the other party destroys basic power facilities and network facilities in a war. In that case, it can be relatively difficult to pay with cryptocurrencies and you can store the value first.
Generally speaking, commodity transactions are mostly fiat currency and barter in a disaster. By contrast, fiat currency is primarily paper money.
In short, paper money remains highly critical in times of war, considering the existing financial blockade of warring states and possible inflation caused by excessive currency issuance.
Therefore, the use of banknotes is less critical than the barter exchange. Right now, a currency unit is just a tool for converting the value of commodities. There are relatively few cases where it works.
Gold has been used as essential asset preservation since the beginning of human society. Many gold-based cultural relics can be unearthed in a large number of famous relics, which also shows the popularity of gold in most countries. The main reason for this is the reserve value function of gold.
Gold’s so-called store of value has a history of up to thousands of years, so it is still considered an essential means of storing value. But of course the shortcomings of gold are also apparent.
It is inconvenient to carry, and it is inconvenient to trade during wars. So you can’t buy gold with gold during wars unless there is a significant premium.
3. Diamonds and gems
Diamonds are the second most valuable item in the world after gold. Although diamonds and gemstones are also a love-related product that has been promoted all over the world, it must be said that the audience for diamonds and gemstones is still very high, since the active storage media, diamonds and gemstones are also one of the essential choices.
Of course, compared to gems, diamond valuation already has its own set of comprehensive standards. In addition, artificial diamonds have developed rapidly in recent years.
In some respects, they can be more pure and standard than natural diamonds and even reach a problematic level for machines to distinguish. Therefore, if you want to use diamonds to store value, you should carefully consider them.
4. Cultural Relics Collection
Cultural relics, calligraphy and paintings are also crucial for storing value during war. This part is a relatively alternative way of storing value. The main problems are preservation and identification.
The chaos of war can easily lead to the improper preservation of popular cultural relics, resulting in poor quality, depreciation, and even the risk of damage.
At the same time, there are also problems of insufficient liquidity and strict fraud in the cultural relics collection market.
However, due to its unique scarcity attributes, war will further reduce the number of cultural relics, so those that are able to survive must be of high value. Once you wait until peacetime, then the value is also priceless.
4. Investment products (stocks and bonds)
Let’s say it’s an investment in stocks and bonds in a war-torn country. In that case, this type of investment is dangerous because once there is a change of government, this type of investment in the past will go back to zero, like the nationalization of some companies, etc.
As a result, stocks and bonds held by investors are likely to be worthless, which is also a major reason why the global stock market will fall sharply in the event of a war.
Also, in the war between Russia and Ukraine, if you have Saudi Arabian crude oil assets or Australian iron ore assets, your overseas assets will be safe in a short period of time.
Still, the premise is that you need to have a separate account abroad, then it is very likely that the bank would collapse due to the war, making this part of the assets unaffordable.
In general, if an individual encounters a scenario such as war, the priority is to accumulate various needs.
Many commodity transactions are required right now, and stablecoins in the form of cryptocurrencies other than US dollar bills and fiat currencies can be used to meet essential material needs.
Gold, diamonds, and cultural relic collections are fit for intergenerational transmission to future generations and not fit for immigrants to carry.
It is natural that the national stocks and bonds and other investment products are sold as soon as possible; Unless you are optimistic about the situation of war and conflict, you can also buy at the lowest point.
Image credit: provided by the author; Royalty free image; Unsplash; Thanks!