Crypto and Gold Are the Only Way to Protect Your Wealth – Arthur Hayes
BitMEX co-founder and cryptocurrency expert, Arthur Hayes, has recently raised concerns about a looming inflationary period that could negatively impact the savings of US citizens.
According to him, as the US cedes its global economic leadership position, financial markets could fragment into various blocs instead of accommodating another dominant power.
Inflation and Fragmentation of Financial Markets
Hayes argues that the US government will take extreme measures to prevent capital flight to crypto and other assets as the dominance of the US dollar in global trade declines.
He believes that paying off the substantial debts incurred since World War II is crucial, and the government requires its citizens to stay invested in conventional markets to achieve this goal. Despite this, Hayes acknowledges that enforcing strict capital controls in the West is challenging since an open capital account is fundamental to the type of capitalism it practices.
Government Measures to Prevent Capital Flight to Crypto
According to Hayes, financial markets are likely to witness a surge in the popularity of gold and cryptocurrencies as investors and nations seek to safeguard themselves against the devaluation of currency. He posits that central banks resorting to printing fiat currency to support their financial system cannot debase gold and crypto, which are not affiliated with any particular country.
According to the BitMEX founder, the US government is implementing measures to make it more difficult for individuals to store their funds in decentralized cryptocurrency wallets.
Bitcoin and Gold as Alternative Savings Options
This could indicate the government’s concerns regarding the potential capital flight. As nations prioritize their interests instead of being subservient to the Western financial system, central banks in the developing world will explore new ways to save their international trade earnings.
The founder suggests that gold allocations will be the primary option, with several countries already increasing their holdings. However, he anticipates that more countries will eventually consider Bitcoin (BTC) as a viable savings option alongside gold, given its track record as the most resilient form of currency ever created.