Do you feel like you’re missing out if you don’t own Bitcoin? Or do you believe that the largest cryptocurrency will eventually reach $1 million?
During the Bitcoin 2023 Miami conference, Greg Foss, an ardent Bitcoin supporter and the Executive Director of Validus Power Corp., expressed his belief. He stated that the only mistake one can make with Bitcoin is not holding any of it. According to him, “The most ridiculous exposure to Bitcoin is being shorted, and if you haven’t figured that out, you failed mathematics.”
Speaking to an audience that included Anestis Arampatzis, co-founder of Centaur Markets, and panelists Joe Ziolkowski, CEO and co-founder of Relm Insurance Ltd., and John Divine, Digital Asset OTC trader at BlockFills, the speaker emphasized the importance of not repeating Peter Schiff’s mistake.
He pointed out that if Schiff had invested just 1% of his gold fund into Bitcoin when it was priced at $10, his return on investment (ROI) would have reached a staggering 3,000 times his initial deposit. This would have made his gold fund the best-performing in history.
According to the Executive Director, his love for Bitcoin stems from its higher probability of increasing over time, which cannot be compared to fiat currency. He cautioned the audience to be cautious in safeguarding themselves against the current financial system, stating that while nothing is certain in finance, it is mathematically certain that fiat will continue to debase at an accelerated rate. He even offered to provide six ways to prove this assertion.
Financial crises are triggered by mismanaged leverage
During a discussion about the financial crises he experienced as a trader in traditional financial firms and their implications for today’s world, Greg emphasized that every single financial crisis share similar characteristics. Two key elements are consistently present: leverage and the mismanagement of that leverage through excessive debt.
Greg shared his realization during the 1988 crisis when he worked on a project involving debts from Latin America. This experience made him aware of the vulnerabilities within the global fiat system. Furthermore, he disclosed that, at the same time, he discovered the insolvency of the Royal Bank of Canada and realized that the entire banking system was insolvent on a mark-to-market basis due to credit risks associated with Latin American and other developing countries.
Rather than focusing on finding solutions for the problem of insolvency, Greg made an observation. He pointed out that banks deemed “too big to fail” are often bailed out by governments, transferring the risk to them. As a consequence, today, every bank carries such a significant amount of debt that it cannot be resolved overnight.
Greg’s recommendation? “Own Bitcoin as a safeguard against the sovereign debt crisis that typically originates in commercial banking and has far-reaching effects.”