Bitcoin & the Future of Bonds with Greg Foss - WBD435

Location: Miami
Date: Thursday 2nd December
Company: Validus Power Corp
Role: Bitcoin Strategist


Credit is central to the modern capitalist system. This makes
bonds the most important financial contract in the world,
significantly more important than equities. So, when credit
markets get sick, all other markets suffer. 


Bonds have performed well for nearly two generations. However,
the market looks like it’s about to turn. Yields are being
suppressed by unprecedented government purchase schemes. This has
to end, and when it does, yields will increase, prices will drop,
and debt will become more costly for governments.


The demand side effects are just as damaging. Pension funds are
mandated to make significant bond purchases (usually representing
40% of a portfolio). Low bond yields in a high inflation
environment result in increased liabilities for pension funds.
Rising yields are obviously better, but not for those holding
bonds dropping in value.   


Is it time for pension funds to be allowed to add bitcoin to
their portfolios?   


In this interview, I talk with Bitcoin Strategist Greg Foss about
how government bond markets are being manipulated through
quantitative easing and how this will soon have to end. We
further discuss what this means for equities and pensions and the
potential for investors to seek refuge in bitcoin.