Arthur Hayes, BitMEX founder, asserts Bitcoin could thrive amid US-China trade tensions. He claims this will result in extensive money printing globally. Despite speculation, he believes central banks will favour gold over Bitcoin. Currently, Bitcoin is priced at $94,832, rising slightly in recent hours.
Arthur Hayes, the co-founder of BitMEX, has expressed a strong belief that Bitcoin (BTC) stands to gain from the ongoing trade war and the rift between the US and China. In a recent interview with Felix Jauvin on the Forward Guidance YouTube channel, Hayes pointed out that major economies globally may need to increase money printing to alleviate the fallout from what he describes as a decline in globalization. He stated, “It’s every major economy that will need to print money – Bitcoin benefits from that.”
He elaborated on how the interplay between the US’s current account deficit and financial account surplus is crucial. The trillions earned from exports to America are often reinvested in Treasury bonds and stocks, particularly in the largest US tech companies. Hayes predicts problems ahead if US policies push for reduced current account deficits, suggesting this would force foreign investors to liquidate stocks, which in turn places pressure on capital gains tax revenue for the government. Thus, he claims, things will lead to more monetary printing which ultimately benefits Bitcoin, hinting at a potential uncoupling from tech assets due to financial necessities.
When it comes to central banks in the current environment, there’s a debate brewing. Some believe that the volatility might encourage these institutions to diversify into Bitcoin. However, Hayes is sceptical, asserting that central banks appear more inclined to stick with gold. “They understand gold. They’ve been trained in gold. They’ve read history books about gold,” he mentioned, casting doubt on a swift institutional shift to Bitcoin.
As of now, Bitcoin is trading at $94,832, reflecting a modest increase of 1.2% in the last day. The crypto community keeps a close eye on its trajectory, particularly in light of these geopolitical dynamics.
In the world of investments, the usual disclaimers apply—any investment, especially in cryptocurrencies, carries inherent risks. It’s paramount for investors to conduct thorough research before diving into Bitcoin or any digital assets. The Daily Hodl is not an investment advisor and does not recommend buying or selling cryptocurrencies.
