I was recently reading Casey Research’s most recent iteration of “Going Global” (a great book by the way) and it got me thinking about how Bitcoin relates to internationally diversifying one’s assets. While traditional means of diversification are still valid, such as foreign bank accounts, a second passport, and foreign brokerage accounts, I feel that Bitcoin has a place in this strategy too…and here is why.
First, Bitcoin is not beholden to one particular nation or central bank. It’s decentralized model allows it to transcend all borders and sovereign ownership. Therefore, in a way, Bitcoin is not even a global monetary unit in that it doesn’t even “exist” on the globe. Bitcoin exists outside the banking system in the digital realm, hence its value.
Next, if you need to buy anything with Bitcoin, at this point in time the digital currency is mature enough so that you can do so. There was a time when Bitcoin was not widely accepted and this has changed with the prevalence of the internet. If you need to buy something, Bitcoin will be there for you.
Lastly, when it comes to cost effective and speedy international transfers, you would be hard pressed to find a better currency than this “digital gold” we are speaking about right now. Bitcoin makes it incredibly easy, fast, and cheap to send money across borders and as a means of internationalization or “getting your money out” this could be an effective medium.
Trying to internationalize your assets? Put some money into Bitcoin…it might be that exact lifeline you need when your domestic wealth is at risk of confiscation by the powers that be.