BitMEX founder Arthur Hayes has provided three pieces of advice to investors regarding the current economic climate. Hayes argues that during an inflationary period, investors should turn to gold and Bitcoin, while avoiding stocks and bonds.
In his analysis, Hayes highlights the significance of Bitcoin as a safe-haven asset in the current domestic inflationary cycle. Due to its independence from national control, Bitcoin has surpassed gold in terms of its reliability and stability.
Hayes also addresses common beliefs within the cryptocurrency community, such as the notion that the crypto bull market is over or that Bitcoin should rise alongside major US tech companies. He juxtaposes these views with the changing geopolitical landscape and global monetary policies, suggesting that we are witnessing a shift from a unipolar world order dominated by the US to a multipolar order with emerging leaders like China, Brazil, and Russia.
Based on one’s belief in the system and its management, Hayes outlines three investment strategies. If you have faith in the system but not its leaders, he suggests investing in stocks. If you believe in both the system and its leaders, government bonds should be your choice. And if you have little faith in either, assets that exist independently of government control, such as gold or Bitcoin, are the way to go.
Hayes emphasizes that during a domestic inflationary period, it is wise for investors to opt for gold and Bitcoin while avoiding stocks and bonds. Conversely, in a global deflationary period, stocks should be favored over gold and bonds.
Hayes also points out the vulnerabilities of government bonds, noting that their values are often compromised by political incentives to print money and evade direct taxation.
Overall, Hayes’ perspective highlights Bitcoin’s potential as a resilient asset in an uncertain economic environment shaped by geopolitical and monetary changes.
Please note that this article does not constitute investment advice.
