Greg Foss, executive director of strategic initiatives at Validus Power Corp, believes Bitcoin is one of the most important technological and financial solutions to the looming debt crisis. During a panel discussion at the “Bitcoin Amsterdam Conference”, he said Bitcoin is a 100% hedge to monetary inflation. Foss highlighted that he doesn’t see any other solutions.
He sees the popular cryptocurrency as a hedge specifically against monetary inflation rather than a consumer price index (CPI) hedge. Foss added that Bitcoin hasn’t performed as a pure CPI hedge. He explained that monetary ease has been withdrawn from the system and caused all the stocks to fall. The executive said Bitcoin’s role will develop but it is still young.
However, with macroeconomics at play especially inflation, traders have turned to gold. It is a safe investment during times of market volatility – like the current one. In regards to Bitcoin’s role in relation to gold as a hedge against monetary inflation hedge, Foss dwelled on the fact that the total supply of gold is unknown, but Bitcoin is 100% available knowledge. He acknowledged that there is protection in gold. But Foss believes that BTC is far superior as it’s powered by math and code. He pointed out that Bitcoin is defended by a decentralized protocol, and one cannot mess with the math.
Foss said there is neither math nor 100% allocation to a specific asset – the beauty of an asymmetric trade opportunity.