Greg Foss says Bitcoin is a hedge against monetary inflation: Bitcoin Amsterdam
Inflation is a buzzword that permeates the world of finance, both traditional and decentralized. International leaders continue to debate whether current circumstances can be considered a recession. While the financial industry’s experts ponder a solution to the situation.
As cryptocurrencies continue to be regulated, adopted and pushed into the mainstream view, questions about digital currencies like Bitcoin (BTC) are the answer.
In the past, stablecoins have been used as a solution to protect savings against inflation. This can be seen in countries such as Venezuela, Nigeria and Argentina, where local populations have fought against large-scale cases of currency devaluation.
At the October 12 Bitcoin Amsterdam conference, Cointelegraph spoke with Greg Foss, managing director of strategic initiatives at Validus Power Corp, about whether crypto and Bitcoin, in particular, is a viable inflation exit strategy.
Despite scrutiny of Bitcoin’s role as an inflation hedge due to current market conditions, Foss believes it is one of the “most important technological and financial solutions to our looming debt crisis.”
The leader participated in a panel discussion on Bitcoin being the answer to the inflation warnings.
“In my opinion, it is 100% a hedge against monetary inflation. What other solution is there? I don’t see any.”
However, Foss highlighted digital currency as a hedge specifically against monetary inflation rather than a consumer price index (CPI) hedge. Although the two are correlated, he said:
“Bitcoin has not acted as a pure CPI hedge, because monetary ease has been pulled out of the system. That’s what has caused all our stocks to fall.”
He further stated that over time he believes Bitcoin’s role will evolve, but it is still young.
As Bitcoin continues to be questioned as an answer to inflation, gold has been a classic example of a safe investment in times of market volatility.
Related: The market doesn’t rise at first — so get used to dark times
When asked about Bitcoin’s role relative to gold as a hedge against monetary inflation, Foss highlighted the fact that the total supply of gold is unknown, while with Bitcoin it is 100% available knowledge.
“There is protection in gold. But in my opinion Bitcoin is far superior. It has math and code. It is defended by a decentralized protocol. You don’t mess with math.”
According to the manager, the way to do that is to allocate neither zero nor 100% to a specific asset. “That’s the beauty of an asymmetric trading opportunity,” he concluded.
