Grand Cayman (CNN Business) Bitcoin might be down 80% from its peak, but true believers in cryptocurrencies and blockchain technology still gush about its enormous potential.

"There is a really good chance we have something better than gold," Travis Kling, founder and chief investment officer of crypto hedge fund Ikigai Asset Management, said on Thursday at the Cayman Alternative Investment Summit in Grand Cayman.

"It's like a CDS against fiscal and monetary policy irresponsibility," Kling said.

Credit default swaps, or CDS, are akin to insurance policies. These financial instruments pay out when a borrower defaults on debt. CDS grew infamous during the 2008 crisis when AIG, one of the biggest issuers of CDS, nearly collapsed itself.

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