Inflation is a buzzword that permeates the financial world, both traditional and decentralized. International leaders continue to debate whether the current conditions can be considered stagnation. While experts in the financial industry are considering a way out of this situation.
As cryptocurrencies continue to be regulated, accepted and actualized, questions about digital currencies such as bitcoin will (
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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 the local population is struggling with large currency devaluations.
At the Bitcoin conference in Amsterdam on October 12, Cointelegraph spoke with Greg Foss, managing director of strategic initiatives at Validus Power Corp, about whether cryptocurrencies and bitcoin in particular represent a viable inflation exit strategy.
Despite scrutinizing bitcoin’s role as a hedge against inflation in current market conditions, Voss believes it is one of the “most important technological and financial solutions to the looming debt crisis”.
The CEO participated in a panel discussion on whether Bitcoin is the answer to inflation warnings.
“In my opinion, this is a 100% hedge against money inflation. What other solution is there? I see nothing”.
However, Voss highlighted digital currency as a hedge against money growth rather than as a hedge against the consumer price index (CPI). Despite their association, he said:
“Bitcoin didn’t work as a pure CPI hedge because the simple cash was removed from the system. That’s why all our stocks have fallen.”
He also stated that over time, in his opinion, the role of Bitcoin will evolve, but it is still small.
As bitcoin continues to be questioned as the answer to inflation, gold has become a classic example of a safe investment in times of market volatility.
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When asked about Bitcoin’s role in relation to gold as a hedge against monetary inflation, Foss explained the fact that the total supply of gold is unknown, while with Bitcoin the information is 100% available.
“Gold has protection. But in my opinion bitcoin is much better. It has math and symbols. It is secured by a decentralized protocol. Don’t bother with math.”
