US President Donald Trump's plans to establish strategic crypto reserves have come under criticism from BitMEX co-founder Arthur Hayes.
Arthur Hayes' Criticism
Arthur Hayes pointed out that without congressional approval to borrow or raise the price of gold, Trump's plans remain mere rhetoric. He stressed that the US government lacks the funds to purchase Bitcoin or altcoins without concrete financial measures.
Political Impact on Bitcoin
Hayes also warns of potential negative political risks stemming from Trump's policy that could impact Bitcoin's price. He mentions the situation could push Bitcoin's price down from $75,000 to $70,000 due to hedge fund selling. Hayes suggested the Trump administration consider gold devaluation and building Bitcoin reserves as a long-term economic strategy.
Bitcoin as a Global Reserve Asset?
Hayes proposes restructuring the global financial system by making Bitcoin a neutral reserve asset. He argues that while the US dollar would remain the primary currency for international trade, Bitcoin could play a crucial role as a global reserve. Key steps include gradually increasing Bitcoin's value, extending US Treasury bond maturities to alleviate financial pressures, bolstering digital dollar promotion via social media, and developing blockchain-based financial infrastructure for greater efficiency and transparency.
Arthur Hayes' views on Trump's plans reflect that economic and political stability continue to be pivotal for the crypto market. Without tangible actions such as congressional approval or gold devaluation, the formation of strategic Bitcoin reserves remains rhetorical. Nevertheless, a more mature strategy could significantly enhance Bitcoin's role in the global financial system.
