Bitmex founder Arthur Hayes says Bitcoin (BTC) is likely to benefit from the ongoing trade war and US-China decoupling.
In a new interview with host Felix Jauvin, host of the Forward Guidance YouTube channel, Hayes said it is likely that governments around the world will need to print money to offset the impact of the trade war that has sparked massive Bitcoin rallies in the past.
“China is not alone. All major economies need to print a lot of money to essentially mitigate the effects of this decline in globalization.
Currently, the mutual mutuality of checking deficits in the US is the surplus of our financial accounts. And all these dollars that earned, trillions of dollars that earned selling things to America, were recycled into Treasury bonds and stocks and Mag 7, all of the US’s large tech stocks. So, mathematically, if (President Donald) Trump is serious about reducing checking accounts to zero, foreigners have to sell stocks. It’s just mathematics.
And the question is, now, if the capital gains tax drops significantly because the market is not rising, can the US government survive financially? i don’t think so. Therefore, there are advantages of print money features and Bitcoin. It is ultimately detached from Tech because of its structural flow and what needs to happen in terms of affordability for the US government. ”
While some people in the crypto space suggest that market disruption could encourage central banks to begin accumulating bitcoin to diversify their asset holdings, Hayes believes that central banks will continue to turn into gold as hedges rather than flagship crypto assets.
“I don’t think they are actually mentally prepared for such a leap. They understand gold. They are trained about gold. They read history books on gold.”
Bitcoin has traded at $94,832 at the time of writing, an increase of 1.2% over the past 24 hours.
https://www.youtube.com/watch?v=bl8d97wrt0e
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