Arthur Hayes, co-founder and former CEO of BitMEX, believes that hundreds of billions of dollars will flow into gold and Bitcoin over the next decade. However, he is also “100% confident” that the financial crisis and extreme inflation of the US dollar will skyrocket. greatly increased during this time.
As explained in his latest BitMEX blog post titled “Energy CanceledIt said that freezing over $600 billion in Russian foreign reserves would convince other world governments to store value in US treasuries. Especially China, which has the largest budget surplus in the world at more than $273 billion a year.
Thus, Hayes’ calculations predicted that China and other trade surplus countries would look to gold and other stowable commodities. with an estimated value of $967 billion per year. which used to belong to the fiat currency
on the contrary This will severely weaken the US dollar, which isfightwith the highest inflation in 40 years
The Federal Reserve just ended its program to buy US Treasury bonds. To help control the soaring prices across the country, however, while other countries Move wealth away from bonds and commodities. The Fed will be forced to buy US bonds again. These purchases will definitely require capital. by printing money which will become “extreme inflation”
The US has a $600 billion account deficit every year. And it must sell $2.8 trillion in bonds to pay for that deficit in 2021 alone.
“The Fed can’t do much either,” so a small rate hike won’t help keep US bonds in the spotlight again. regression which politicians will not allow
Although some investors refer to Bitcoin as “digital gold,” Hayes expects Bitcoin to trade more like a tech stock than a safe haven. This indicates that the world is not yet aware of its financial properties, and as such, governments are pouring most of their money into real gold now.
But that doesn’t mean digital gold isn’t profitable: Hayes remains “confident” that if a new golden age happens, Some central banks will choose to start trading in Bitcoin instead of shipping gold around the world.
“Gold will go to $10,000 and Bitcoin will go to $1,000,000 as the fiat meltdown will result in “the largest wealth transfer the world has ever seen.”
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