BitMEX founder Arthur Hayes gave three pieces of advice to investors! He highlighted Bitcoin
Hayes advocated that investors should choose gold and Bitcoin during inflationary periods and avoid stocks and bonds.
BitMEX founder Arthur Hayes has published a thought-provoking article discussing the dynamics of historical economic cycles and distinguishing between local inflation cycles and global cycles.
Arthur Hayes: Bitcoin Surpasses Gold as a Safe Haven Asset in Local Economic Cycles
Hayes argues that in the current economic environment, Bitcoin emerges as a superior safe haven asset compared to gold due to its independence from national control in a local inflationary cycle.
In his analysis, Hayes addresses prevailing beliefs within the crypto community, such as the end of the crypto bull market or the expectation for Bitcoin to rise alongside large-capitalization US technology companies.
He juxtaposes these views with discussions on changing geopolitical landscapes and global monetary policies, suggesting that we are at a significant point in transitioning from a unipolar world order dominated by the US to a multipolar order with emerging leaders like China, Brazil, and Russia.
Hayes outlines three investment strategies based on an individual’s confidence in the system and its governance:
Here are the investment strategies outlined by Hayes based on beliefs in the system and its leaders:
1. If you believe in the system but not in the leaders, invest in stocks (stonks).
2. If you believe in both the system and its leaders, invest in government bonds.
3. If you don’t believe in either the system or its leaders, invest in assets that are independent of government control, such as gold or Bitcoin.
In a period of local inflation, it is argued that investors should prefer gold and Bitcoin, while avoiding stocks and bonds.
Conversely, during a global deflationary period, stocks should be preferred over gold and bonds.
Hayes highlights the vulnerability of government bonds, noting that their value often weakens due to political incentives favoring money printing and avoidance of direct taxation.
Hayes’ perspective underscores Bitcoin’s potential to be a resilient asset in an uncertain economic environment shaped by evolving geopolitical and monetary conditions.
Note: This is not investment advice
