“Arthur Hayes, a prominent figure in the crypto space, issues a compelling warning: as the global financial crisis escalates, it’s high time to place your bets on the resilience and potential of Bitcoin (BTC).”
Bitcoin (BTC) has been hailed as a solution to negative real rates in the ongoing financial crisis by former BitMex CEO Arthur Hayes. In a recent post on Twitter, Hayes emphasized the critical importance of Bitcoin as the global financial landscape faces mounting challenges.
Hayes pointed out that the real interest rates in the United States are actually negative. He calculated this by subtracting the 3Q23 nominal GDP growth rate of 6.3% from the one-year Treasury yield of 5.4%, arriving at a real rate of -1.1%.
In light of this, Hayes urged individuals to carefully consider their financial choices and advised against letting the government profit at their expense. Instead, he recommended investing in technology stocks, gold, and BTC to safeguard and enhance their purchasing power.
This is not the first time Hayes has shared his views on Bitcoin’s pivotal role in today’s economic climate. He has previously written about the topic in his essays, albeit with an error in the formula he used. Correctly, the real rate is calculated by subtracting inflation from the nominal rate, rather than GDP.
For Hayes, the main driver behind the call to invest in Bitcoin lies in the ongoing issue of inflation. He believes that fiat currencies worldwide are losing their purchasing power due to extensive quantitative easing and stimulus packages implemented by central banks in response to pandemic-induced financial policies.
As global economic uncertainties loom large, Hayes’ warning echoes loud and clear: it is time to bet on Bitcoin in the face of the impending financial crisis.
About the author:
Gamza Khanzadaev is a financial analyst, trader, and crypto enthusiast. He holds a degree in finance and credit with a specialization in securities and financial derivatives, as well as a master’s degree in banking and asset management. Khanzadaev aims to cover economic and fintech topics, educate more people about cryptocurrencies and blockchain, and contribute to the field.