Arthur Hayes, the co-founder of Bitmex, recently published a blogpost where he predicts the end of the petrodollar/eurodollar monetary system and the biggest wealth transfer into gold and bitcoin that the world has ever seen.
Hayes believes that removing the world’s largest energy producer from the financial system will have huge and unimaginable consequences that will not have been reckoned with.
He says that he is sure that a huge financial crisis will take place:
“I am 100% certain that there will be a financial crisis of epic proportions predicated on losses faced by commodity producers and traders who touch every aspect of the globalised financial system,”
For Hayes, the blocking of Russia from the SWIFT payments network is only going to encourage a movement away from this system by other countries. His view is that, although there are several countries that operate the network, it’s the US and Europe that control it.
In his blogpost he says: “Should you ‘save’ in assets that ride on this centralised, permissioned digital monetary network?”, and he goes on to pose the question whether the trust will remain that other nations will not have their ‘savings’ expropriated?
Hayes thinks that hard assets that are used to hedge, such as gold, are going to skyrocket in price. He believes that his price prediction of $10,000 gold will be caused by competition and demand, and his view is that the same will happen to bitcoin, which he predicts will go to $1 million per coin.
“As gold marches its way above $10,000, bitcoin will march its way to $1,000,000. The bear market in fiat currencies will trigger the largest wealth transfer the world has ever seen,”
As for which of these assets is the most advantageous, Hayes writes that both are forms of hard money, but that while gold is analog, bitcoin is digital.
He says that there are problems with storing gold, while bitcoin is incredibly easy in comparison. To give an idea of the difference he writes:
“Most readers don’t have a vault in a freeport in which to store their yellow pet rocks — Instead, you would like a more transportable hard store of wealth,”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
