Giovanni Russo On May 4, Greg Foss, who works with Validus Power Corp., posted a video on Youtube explaining that the banking industry might lose up to $10 trillion in money. He also proposed investing in something called “hard assets”- like property, gold or so-called bitcoin – as a way of protecting yourself when this happens. According to Mr. Foss, he believes that bitcoin is one of the best hard assets for this purpose because it will act as an insurance against potential losses from different types of currencies.
Investing in Bitcoin
In the last couple of months, there have been some huge changes in U.S. banking – it’s seen the second, third and fourth largest bank failures ever! Michelle Makori from Kitco had a talk with Greg Foss talking about what Fed chairman Jerome Powell said that the whole U.S. banking system is “sound and resilient”.
Foss was talking to Makori and said he thought Jerome Powell was a bad poker player. He then went on to say that something else bad may happen in the banking industry, as Elon Musk has suggested. Foss added that Powell’s body language seemed desperate and mentioned that the Federal Reserve might have waited too long before taking action.
According to Mr. Foss, there is a chance that some banks won’t be able to survive due to financial issues. The bigger ones will probably get help from the government, but their shareholders might not be as lucky and could lose a lot of money. To make things clear, he highlighted that if the whole ‘banking system’ fails, there’s a potential $10 trillion worth of equity at stake.
Foss shared in his interview that he likes investing in hard assets, including real estate, gold, and bitcoin. According to him, bitcoin is the best choice, but you shouldn’t selling your gold off to buy it; instead, Foss thinks that you should use a chunk of the money you have saved up in bonds to purchase bitcoin. Basically, if you don’t invest in BTC already then you’re potentially taking more of a financial risk.
Foss says that Bitcoin can be thought of as a type of insurance since it is worth around half a trillion dollars whereas the United States alone has liability worth $200 trillion. That means if something goes wrong, then people could rely on Bitcoin. He also mentioned that Bitcoin exists in an open and free marketplace while other currencies are manipulated by someone like Jerome Powell.
What do you think of Greg Foss’s ideas about investing in real estate, gold, and bitcoin? Do you agree with his opinion that banks are not totally secure and that we should invest in other options? We’d love to hear your thoughts in the comments section.
