- Arthur Hayes, former CEO of BitMEX argues that ‘capital can get destroyed over time’ in the traditional financial system.
- The spike in inflation is expected to negatively impact invested capital and Hayes proposes crypto, Bitcoin as a feasible alternative.
- Hayes is bullish on BTC and predicts a run up to $1 million in the current cycle.
Arthur Hayes, crypto influencer and the founder of BitMEX believes that capital invested in traditional financial systems erodes with the spike in inflation and increasing leverage in the ecosystem.
The Bitcoin bull has set a $1 million target for the asset in the current market cycle.
Also read: Ethereum active deposits explode, wiping out decline from the FTX collapse
BitMEX founder explains $1 million Bitcoin thesis
Arthur Hayes of the investment fund Maelstrom and the founder of BitMEX critiques the US banking system and the failures of banks in the economy. Hayes has consistently predicted further failures in US banks, and argues that “lower interest rates” could fix the banking system.
While the US Central bank continues hiking interest rates, banks continue to fail, Hayes highlights the failure of Silvergate and FRC in a recent interview. Hayes is bullish on Bitcoin and believes that capital from other markets is likely to rotate into BTC and fuel a rally in the asset.
Hayes explains that Bitcoin is a feasible alternative for investors whose capital is getting eroded year after year in the traditional financial market and with rising inflation rates and cost of living.
Bitcoin and decentralized cryptocurrencies like Ethereum, Uniswap, Compound and AAVE pose as alternatives for investors looking to beat inflation in the traditional financial market, fueling a “crypto as inflation hedge” narrative.
Hayes told Cointelegraph that Bitcoin is likely to rally to $1 million in the current cycle if the US Federal Reserve keeps up its interest rate hikes.
Another crypto influencer who put forward the $1 million Bitcoin thesis recently closed a bet early and explained his thesis.
Balaji Srinivasan closes losing $1 million BTC bet
Balaji Srinivasan, former Coinbase CTO and crypto influencer recently closed his bet that Bitcoin price will hit $1 million by June 2023. The expert shared the inspiration behind his million-dollar Bitcoin bet and explained that the purpose was to alarm investors regarding hyperinflation in the US.
I just burned a million to tell you they're printing trillions. pic.twitter.com/pX5622rjUO
— Balaji (@balajis) May 2, 2023
While the former Coinbase CTO’s bet was considered unrealistic and garnered criticism in the crypto community, Hayes stands by his bullish thesis for Bitcoin and a rally to $1 million in the 2023 cycle.
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