Arthur Hayes Predicts Governments Will Drive Inflation, Leading to Cryptocurrency Growth

BitMEX co-founder Arthur Hayes predicts that governments will further drive inflation, leading to the debasement of national currencies. In a recent blog post, Hayes argued that this environment is positive for cryptocurrencies, which will act as inflationary hedges.

Hayes believes that the next few months will be the perfect time for investors to top up their cryptocurrency positions. He pointed out that major global currencies are being continuously debased by their respective governments, creating a favourable environment for assets like Bitcoin.

According to Hayes, the bull market for cryptocurrencies will continue as governments in the US, China, the European Union, and Japan continue to debase their currencies to deleverage their balance sheets. With the US national debt reaching $34.6 trillion, Hayes warned that the situation is only getting worse.

Hayes also highlighted that upcoming elections in the US and elsewhere could exacerbate inflation, as politicians may promise benefits without raising taxes, increasing the national debt to boost voter support. While there is a chance that inflation could drop, Hayes urged investors to reassess their crypto conviction in that scenario.

In conclusion, Hayes advised investors to let their winners run and take advantage of the less volatile period ahead for cryptocurrencies. As governments drive inflation through currency debasement, cryptocurrencies are poised to serve as a hedge against rising inflation.