Arthur Hayes Warns It's Time to Bet on Bitcoin (BTC) Amid Financial Crisis

Gamza Khanzadaev

Former BitMex CEO Arthur Hayes warns that Bitcoin (BTC) is solution to negative real rates in ongoing financial crisis

In a recent X post, Arthur Hayes, former BitMex CEO, emphasized the critical importance of Bitcoin (BTC) as the global financial landscape faces mounting challenges. Hayes, renowned for his insightful perspectives on digital currencies, pointed out that the real interest rates in the United States are, in fact, 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%.

Hayes urged individuals to consider their financial choices carefully, advising 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.

US real rates are actually negative.
3Q23 nominal GDP = 6.3%
1-year treasury yield = 5.4%
-1.1% real rate
If you have a choice why let the govt make a profit at your expense, better to own tech stocks, gold, $BTC and retain purchasing power.
The Lord is my shepherd ….
— Arthur Hayes (@CryptoHayes) October 26, 2023

This is not the first time Hayes has shared his views on Bitcoin’s pivotal role in today’s economic climate. Notably, 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.

Yet, for Hayes, the main driver behind the call to invest in Bitcoin lies in the ongoing issue of inflation. He previously highlighted how 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’s 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

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master’s program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.

Source: https://u.today/arthur-hayes-warns-its-time-to-bet-on-bitcoin-btc-amid-financial-crisis