Bitcoin has a prominent defender in chess champion Garry Kasparov, who argues that we will need cryptocurrencies to limit the power of national governments as they fool around with monetary supplies.
“Russian chess grandmaster Garry Kasparov is a supporter of blockchain, cryptocurrencies, and Bitcoin in particular,” writes Jordan Lyanchevat Cryptopotato. “In a recent interview, he outlined some of the digital assets’ merits, including increasing personal protection and allowing people to reclaim control over their finances.”
The man who beat Deep Blue at least once is now a cheerleader for decentralized currency, arguing that fears of fraud and money-laundering are exaggerated, and that the benefits of adopting cryptocurrency options outweigh the negatives.
“The steady rise in popularity of Bitcoin, other cryptocurrencies, and blockchain technology as a concept is inevitable because it’s a response to the shift of power from individuals to states or other institutions that may act on our privacy without our consent,” Kasparov said, according to Lyanchev’s report.
One of the major points in this and other reports is that the practice of arbitrarily injecting money into the supply system dilutes the power of the national fiat currency, but does not do the same thing to cryptocurrency holdings. Lyanchev quotes Kasparov again:
“We understand the formula behind that [BTC’s limited supply.] But when you look at the other side, the Fed, for instance, you never know how many trillions of dollars will appear on the market tomorrow that will damage your savings.”
Theoretically then Bitcoin is the perfect way to beat inflation, and if you transfer your funds before the fiat currency crashes, you’re suddenly holding a lot more money.
“Purchasing power and liquidity are an extension of how trustworthy an asset class is, making it an important if somewhat subjective criteria,” writes Andrew Munro on Finder.
Specifically, the current coronavirus stimulus program is printing money like it’s going out of style. Investors are seeing cryptocurrencies as a way to hedge against the eventual effects of this flood of new money that could devalue the dollar.
Keep an eye on how this plays out as markets and investors respond.
