The founder of the cryptocurrency exchange BitMEX, Arthur Hayes, believes that Bitcoin will profit from the upcoming money printing governments will use to mitigate economic uncertainty. According to him, these measures will increase the value of BTC and other cryptocurrencies.
Bitcoin to Benefit from Quantitative Easing
In his blog post titled "Supercycle of Volatility," Hayes highlights that the quantitative easing being introduced by various governments will boost Bitcoin and the broader crypto market. Hayes argues that the new money will eventually flow into Bitcoin, which he sees as the best way to protect against currency devaluation caused by government interventions.
Global Economic Measures Supporting BTC
Hayes’ statement comes in the context of the U.S. Federal Reserve’s recent interest rate cuts and China’s stimulus measures aimed at reviving its economy. For example, the Chinese central bank has lowered reserve requirements and short-term interest rates. This influx of liquidity, according to Hayes, could fuel Bitcoin’s price growth as investors seek safe havens for their assets.
Strategy for Investors
Hayes emphasizes that the ideal strategy is to acquire Bitcoin at the lowest possible price. Investors can obtain BTC through methods like receiving payment in cryptocurrency, mining, or borrowing fiat currency at low interest rates and investing it in Bitcoin. However, he cautions against using leverage, stating that Bitcoin is a long-term asset meant to be held over time.
Risks of Volatility
Hayes also warns of the risks associated with this strategy. If elites stop suppressing volatility, it could lead to a dramatic surge in instability and a subsequent collapse of the financial system. While Bitcoin could also experience a decline, Hayes believes its drop would be smaller compared to other assets, providing a relative advantage for holders.
Investment Recommendation
Hayes reiterates his recommendation for anyone holding fiat currencies to invest in cryptocurrencies. He believes that as monetary conditions loosen, the value of Bitcoin and other crypto assets will surge significantly.
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Future Outlook
According to Hayes, governments will continue easing monetary policies, leading to further money printing and increased demand for cryptocurrencies. The U.S. Federal Reserve is expected to continue lowering interest rates, which will inject more dollars into the system. In Europe, governments will push banks to provide more loans to support local economies. In China, money printing could gain momentum if it follows the Fed’s lead.
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“