Former BitMEX co-founder Arthur Hayes believes that the upcoming devaluation of fiat currency will drive up the prices of Bitcoin and stocks.
Inflationary Cycle
Hayes predicts that the economy is entering a new inflationary cycle. He cites projections from the Congressional Budget Office, which estimate a record-high US federal budget deficit of $1.9 trillion in 2024.
Preserving Wealth
Hayes emphasizes that holding cryptocurrency is the best way to preserve wealth during this inflationary period. He draws parallels to the 1930s to 1970s, when currency debasement led to significant gains in asset prices.
Stock Pumping
Hayes also predicts that companies will use cheap credit to pump their own stocks. Central banks have lowered interest rates and increased the supply of credit, which makes it easier for companies to borrow money and buy back their shares, boosting their stock prices.
Conclusion
Hayes believes that investors should take advantage of the current loose monetary and fiscal conditions by investing in Bitcoin and stocks. He warns that currency debasement is on the horizon, which will negatively impact savers while benefiting those holding assets that can appreciate in value.
