Impacts of war on storing assets like crypto, gold and more

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Every time a war occurs between two countries, there are consequences that the whole world has to deal with. The recent conflict between Russia and Ukraine has driven up oil prices, and people might now be worried about their assets like cryptocurrencies – and whether those or other assets are worth storing or not.

In addition to the Winter Olympics, what the world has been paying attention to recently may be the conflict between Russia and Ukraine.

This time, the global financial market fell sharply and Bitcoin fell significantly, dropping 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, save our possessions, 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 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 important advantage of cryptocurrencies is that they are easy to register.

One of the ways to get cryptocurrency is through mining. Current miners with considerable revenue are Antminer S19j Pro, Antminer L7, Innosilicon A10 Pro and others.

Although cryptocurrencies such as Bitcoin can provide storage of user value and have anti-inflationary characteristics, cryptocurrencies must rely heavily on the Internet to function normally.

Suppose the other side destroys basic power facilities and network facilities in a war. In this case, it can be relatively difficult to pay with cryptocurrencies, and you can first store the value.

2. Tickets

Broadly speaking, commodity transactions are mostly fiat currency and disaster barter. In contrast, fiat money is mostly paper money.

In short, paper money is always very critical in times of war, given the existing financial blockade of warring states and possible inflation caused by over-issue of currency.

Therefore, the use of banknotes is less critical than barter. Currently, a monetary unit is only a tool for converting the value of a commodity. There are relatively few cases where this works.

3. Gold

Gold has been used as an essential element of 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 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 a history of up to thousands of years, so it’s still considered an essential way to store value. But, of course, gold’s flaws are also apparent.

It is inconvenient to carry, and it is inconvenient to trade in wars. Therefore, you cannot buy gold with gold during wars unless there is a large premium.

3. Diamonds and gemstones

Diamonds are the second most valuable commodity in the world after gold. Although diamonds and gemstones are also a commodity attached to love that has been hyped around the world, it must be said that the audience for diamonds and gemstones is still very high. , as assets Storage media, diamonds and gemstones are also one of the essential options.

Of course, compared to gemstones, diamond grading already has its own comprehensive set of standards. In addition, artificial diamonds have developed rapidly in recent years.

In some ways they can be purer and more standard than natural diamonds and even reach a problematic level for distinguishing machines. Therefore, if you want to use diamonds to store value, you should consider them carefully.

4. Collection of cultural relics

Cultural relics, calligraphy, and paintings are also essential for storing value during war. This part is a relatively alternative way of storing value. The main issues are conservation and identification.

The chaos of war can easily lead to poor preservation of folk cultural relics, resulting in poor quality, depreciation and even risk of damage.

At the same time, there are also problems of insufficient liquidity and strict fraud in the market for collecting cultural relics.

However, due to their unique rarity attributes, warfare will further reduce the number of cultural relics, so those that can survive must be of high value. Once you wait for peace time, the value is also priceless.

4. Investment products (stocks and bonds)

Suppose it is an investment in stocks and bonds in a war-torn country. In this case, this type of investment is risky because once there is a change of government, this type of investment in the past will return to zero, such as the nationalization of certain companies, etc.

As a result, stocks and bonds in the hands of investors are likely to be worthless, which is also an important reason why the global stock market will fall wildly in the event of war.

Moreover, in the war between Russia and Ukraine, if you hold Saudi crude oil assets or Australian iron ore assets, your overseas assets will be safe in a short time.

Still, the premise is that you must have an independent overseas account, so it’s very likely that the bank collapsed due to the war, making that part of the assets unpayable.

To summarize

All in all, if an individual encounters a scenario such as war, the priority is to hoard various necessities.

Many commodity transactions are required at present, and stablecoins in the form of cryptocurrencies other than US dollar banknotes and fiat currencies can be used to meet essential material needs.

Gold, diamonds and collections of cultural relics are suitable for intergenerational transmission to future generations and are not suitable for immigrants.

It is natural for domestic stocks and bonds and other investment products to sell as soon as possible; unless you are optimistic about the war and conflict situation, you can also buy at the lowest point.

Image credit: provided by the author; Royalty free image; Unsplash; Thank you!

Nabeel Azam

After getting my BS in Computer Science, I entered the IT world to explore my passion for SEO, content writing, and web development. Currently, I work as a full-time content writer and write tech-related content on several reputable sites.

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