In today’s digital age, most if not all of our financial and business records are stored digitally. Most of us store most of our wealth in nothing but bits and bytes in a computer hard drive in some nondescript building called a Data Center. Businesses big and small are increasingly becoming reliant on electronic data to keep their businesses running.
Imagine now what chaos would ensue if for some unforeseen event, all electronic data globally would be wiped out in one instance.
Banks would lose track who owns how much, large corporations will be crippled, the Internet would suffer catastrophic damage, you’ll even lose touch with your Facebook friends and your phone numbers. This blog post would probably be wiped out too. This would be one big bad black swan.
NASA scientists are talking about the sun’s increasing solar storm activity, which could hit us in 2013. In 1859, there was a big storm but it wasn’t much of an issue because we weren’t as technologically advanced or electronically dependent. However in March 1989, a small storm hit Quebec and caused widespread power failure which caused $2 Billion in economic damage. A kind of solar storm that happens once every century could cause economic damage twenty times that of Hurricane Katrina, NASA warns.
What Can You Do?
- Keep paper copies of important financial and business transactions and records.
- Keep money under your mattress.
- Diversify your storage of wealth. Invest in tangible items that could be bartered in such an event.