Investor and venture capitalist Preston Pysh says Bitcoin (BTC) is the key to solving a problem plaguing modern economies.
In a new YouTube interview with Natalie Brunell, Pysh says the global financial system is fundamentally flawed because it allows governments to issue currency without a “global peg,” or a trusted asset that guarantees its value.
[adinserter block="1"]Pysh argues that Bitcoin is the only asset capable of addressing the root cause of currency debasement and recurring market meltdowns.
“The problem in the world was there was no global peg. There was no global peg that could be trusted. That was truly the problem. That’s why fiat kept expanding. That’s why you got these crazy valuations it’s because they’ll just print more money and then it just continues to blow out and create chaos because nobody can trust the underlying fundamental unit.
So there was no peg. That’s what Bitcoin was solving.”
Pysh also believes that Bitcoin’s primary function is to serve as a store of value, with its use as a cash-like medium being secondary.
“How in the world are all these governments going to come to a collective consensus that they can trust each other when everybody is racing to debase their currency? There was no solution.
People were telling me, ‘Oh, it will be the IMF and [its] special drawing rights and all this other stuff,’ which all required trust. And I was like, ‘I don’t think so. I don’t think that solves it.’
And so then I see Bitcoin like, ‘Finally, here’s something that actually solves this massive, huge engineering problem…
I think that you have to first have store of value, and it has to continue to appreciate in value because of its store of value properties before people are going to want to conduct commerce and everyday payments, and it is treated as cash.”
At time of writing, Bitcoin is trading for $95,956.
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