BitMEX Co-Founder Arthur Hayes Predicts Increased Use of Bitcoin as US Dollar Dominance Decreases
BitMEX co-founder Arthur Hayes has spoken out about the decreasing role of the US dollar in the global economy and its potential impact on the adoption of cryptocurrencies. In his recent article titled ‘Exit Liquidity,’ he pointed out that as the dollar loses its dominance, more countries may consider using Bitcoin as a savings tool.
According to Hayes, the US dollar’s global dominance is supported by its open capital accounts and commitment to free trade. This creates additional demand for the currency, but being the issuer of a global reserve currency means that the US Federal Reserve and the US Treasury are responsible for keeping the global economy intact.
However, several global trade zones have shown interest in moving away from dollar settlements in recent months, which could result in several currency blocs appearing in the future. Hayes predicts that a currency hegemony like the current US dollar will not appear, and instead, the imbalance between blocks will be resolved with “neutral reserve currencies” such as gold and cryptocurrencies that are not tied to any particular country’s currency.
Hayes believes that as Bitcoin continues to prove itself as the most powerful money ever created, more countries will consider whether it is a suitable savings vehicle, at least alongside gold.
He also linked the weakening role of the dollar on the world stage to the Biden administration’s recent crackdown on crypto firms. Hayes pointed out that the West is making it harder to buy cryptocurrencies and keep them in personal wallets, which could deter some investors.
Furthermore, he noted that after the FTX meltdown, leftist politicians in the US became extremely skeptical of cryptocurrencies, with some questioning whether crypto assets could ever become American.
In conclusion, Hayes’ article provides an insightful analysis of the global economy and its potential impact on the adoption of cryptocurrencies. As the role of the US dollar diminishes, the world may see an increasing interest in alternative currencies, such as Bitcoin and gold, that are not tied to any particular country’s currency.
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