Greg Foss Asserts That Bitcoin (BTC) Is A Hedge Against Inflation
As reports of global inflation continue to swirl, disagreements boil both inside and beyond the decentralised finance community as to whether Bitcoin is the solution.
Inflation is a term permeating the conventional and decentralised financial worlds. International leaders continue to argue over whether present conditions qualify as a recession. As specialists in the financial business seek a solution to the problem.
As cryptocurrencies continue to be regulated, embraced, and pushed into the mainstream, doubts are raised as to whether digital currencies such as Bitcoin are the solution as its price drops to $19,080.
In the past, stablecoins were employed as a hedge against inflation. This is evident in nations such as Venezuela, Nigeria, and Argentina, where the local populace has fought against significant currency depreciation.
At the Bitcoin Amsterdam conference on October 12, Cointelegraph talked with Greg Foss, executive director of strategic initiatives at Validus Power Corp, on the viability of cryptocurrencies and Bitcoin in particular as an inflation escape plan.
Foss thinks Bitcoin is one of the “most essential technical and financial answers to our oncoming debt catastrophe” despite the fact that Bitcoin’s function as an inflation hedge is under review owing to current market circumstances.
The CEO took part in a panel debate on whether Bitcoin is the solution to inflationary warnings.
“In my opinion, it is 100% a hedge to monetary inflation. What other solution is there? I don’t see any.”
Nonetheless, Foss emphasises the digital currency as a hedge against monetary inflation, not the consumer price index (CPI). Despite their correlation, he states:
“Bitcoin has not performed as a pure CPI hedge, because monetary ease has been withdrawn from the system. It’s what’s caused all of our stocks to fall.”
He said that he thinks Bitcoin’s function will evolve with time, but the cryptocurrency is still new.
Gold has been a classic example of a secure investment during times of market turbulence, while Bitcoin’s efficacy as an anti-inflation solution remains in doubt.
When questioned about Bitcoin’s significance in comparison to gold as a hedge against monetary inflation, Foss emphasised the fact that gold’s entire quantity is unknown, but Bitcoin’s supply is completely transparent.
“There is protection in gold. But in my opinion, Bitcoin is far superior. It’s got math and code. It’s defended by a decentralized protocol. You don’t mess with math.”
According to the CEO, neither a 0% nor a 100% allocation to a certain asset would suffice. he said more that’s the beauty of a chance for asymmetric trade.
