Arthur Hayes, former CEO of BitMEX, has shared insights regarding the future of the global financial system, highlighting key assets such as gold and Bitcoin.
End of Treasury Bonds Era
Hayes notes that we are approaching the end of a monetary order that began with the US abandoning the gold standard in 1971. Over the last 50 years, US Treasury debt has increased 85-fold. This expansive policy has provided the dollar liquidity necessary for global economic growth, but it has not benefited all Americans equally, particularly those feeling excluded from this 'prosperity.'
Gold and Bitcoin as New Neutral Assets
Hayes posits that gold will once again become the backbone of international trade in the new era. While the dollar's status as a reserve currency will persist, countries will need to bolster their gold reserves. He emphasizes that gold should be exempt from tariffs, signaling a transformation in the global economy.
Investor Recommendations
Addressing investors, Hayes advises, 'Those wanting to return to pre-1971 trade relationships should purchase gold, gold mining companies, and Bitcoin.' He suggests that the rising trade war between the US and China, along with the depreciation of the yuan, could lead Bitcoin to reach a value of one million dollars.
Arthur Hayes’ reflections on the future of the financial system highlight potential shifts in the roles of traditional and crypto assets, prompting a reconsideration of investment strategies.
