When a hurricane hit Puerto Rico a few weeks ago, the north west side of the island didn’t have electricity for many weeks. How can you buy anything in a cashless world without electricity?
- Banks are closed
- ATMs are down
- Credit cards couldn’t be used
- No internet access
- No cellphone service
- No access to cryptocurrencies
There were only two ways to purchase anything: cash or barter.
The only people with cash had it prior to the hurricane.
In barter transactions, people were only getting 5-10 cents on the dollar; meaning you will lose 90-95% of the fair value of your items that you sell. Only gold and silver at coin shops had the smallest discount from fair market value.
When backup generators eventually powered the ATM machines, banks limited withdrawals to just $50/day per person.
When the electricity went down, items that suddenly became very valuable:
- Candles
- Gasoline and Gas containers
- Water (for example, 30 avocados for 1 gallon of water)
- Cigarettes (2 packs of cigarettes for labor/help)
- Canned food
- Chainsaws
Another note for emergency preparation:
- Unarmed elderly were the first targets of theft and looting.
- The second targets for theft were gun-free zones like schools and daycare centers.
- Portable generators were frequently stolen – they must be chained or guarded.
- Most of the casualties from the hurricane were at the hospitals due to no electricity: people needing emergency care (no dialysis, no insulin, no electrical life support machines, anything requiring refrigeration or freezing, etc.)
So when disasters strike and the electricity goes out, if you’re cashless then you are broke!
Please use this article to prepare for what you may need to survive for a month if the electricity goes out.