Bitcoin and other cryptocurrencies have changed the way that we think about a lot of things: banking, finance, peer-to-peer payments, and so forth. One area that some in the community may have thought about is how useful cryptos could be as emergency funds. I received a request to write an article about cryptocurrencies for use in emergency funds and bug out bags, so I decided to take the opportunity to explore something that not everyone knows about.
Cryptocurrency in a Bug Out Bag
Some of you may be familiar with the concept of a bug out bag, or a sort of emergency exit package. For those of you who may not be as familiar, a bug out bag is a prepared bag that individuals pack for a future scenario where they may need to move (or “bug out,” hence the name) at a moment’s notice. As I understand it, these bags need to be light, portable, and compact.
Often, these bags include clothing, travel documents, food, cash, and other necessities. The idea is that, should the need arise, one can not only move quickly but also be prepared for almost any scenario.
Many readers will likely see where this is headed, but I wanted to explore the idea of replacing cash – in whole or in part – with cryptocurrencies. What are the advantages and disadvantages that cryptos can provide in this sort of instance?
One of the most obvious advantages is space and weight. Cash can be heavy and cumbersome, especially if one hopes to pack enough to make it worthwhile. Cryptos could be reduced down to the size of a hardware wallet, or even a humble paper wallet. This would leave more space for other essentials in a portable bag.
Another benefit is that while not anonymous, the pseudonymity associated with cryptocurrency can be appealing for someone who may be looking to change location. Speaking from a purely empirical point of view here, those funds would need to be secured outside of exchanges and the like if one wished to truly remain under the radar.
However, there are some significant disadvantages to using cryptos in one’s bug out bag. The first of these has already been hinted at. KYC laws could significantly hinder one’s ability to keep their crypto bug out assets separate from his or her identity, as is the aim of those laws.
The second disadvantage is a fairly big one as well: not everyone accepts Bitcoin. People are – for now, at least – more likely to accept cash than cryptos. Go to any neighborhood bar and try paying with a card, let alone Bitcoin, and you’ll know what I’m talking about. Anyone with a bug out bag or considering using one would be at the mercy of merchants’ discretion to take cryptos should they replace their cash with cryptos.
Moreover, it also may be easier to lose that paper wallet or hardware wallet than it would be to lose cash, depending on the individual.
I hope this article was a fun little venture into something a bit different. I’ve never known anyone who had a bug out bag, but it seems like an interesting concept where cryptos may have a place. If you yourself have one prepared, does cryptocurrency have a place in yours?