Bitcoin and Cryptocurrency Prophecies from Legendary Founder Arthur Hayes!

Cryptocurrency Arthur Hayes, co-founder of trading platform BitMex, has published a lengthy blog post arguing that the world’s central banks will be forced to “print money” again due to various economic pressures.

According to Hayes, this printing of money can create inflation that raises the price of alternative currencies such as crypto and gold.

BitMex Founder Arthur Hayes Speaks About the World Economy

In Hayes’ article entitled “The Pandemic,” the former CEO began by highlighting the immediate challenges facing the global economy following the major central banks’ decision to tighten monetary policy:

“The worst-affected markets were government debt markets, and the bond market crash was almost the worst in human and financial history.”

Bond yields rose unsustainably in some markets as a result of monetary tightening.

Last month the Bank of England had to turn to quantitative easing to quell the skyrocketing yields on 10- and 30-year bonds, which nearly went bankrupt for many UK pension funds.

Hayes claimed that other central banks will eventually “supply” to similar measures to solve similar problems. For example, the European Central Bank (ECB) is already buying bonds for some weak member states.

The EU in particular suffers from a shortage of affordable energy due to Germany’s current energy policy.

According to Hayes, this could hurt Germany’s economic output and export position and cause countries with which it trades to stop buying their products with the weakening euro against the dollar:

“Without cheap energy, Germany will have to try to print money to get rid of its problems. And just like any other country, they will issue more bonds to cover financial transfers.”

Hayes said that as Germany issues more bonds, bond yields will rise rapidly, as in the UK.

Hayes Shared His Thoughts on Gold and Cryptocurrencies

Hayes added that “changeable global risk assets” such as gold and cryptocurrencies could prove to be profitable, given the thesis that most major central banks are “moving towards yield curve control”.

“Given that the gold and cryptocurrency markets are much smaller in size than the trillions of fiat currencies to be printed, these non-dollar currency assets could appreciate.”

Hayes, even in the face of a stubbornly toughening Fed of bitcoin argues that it will rise with the joint efforts of other central banks.

*Not investment advice.