BCGAME - Free 5BTC Daily Bonus!- Falling dollar benefits Bitcoin
- Credit expansion could push BTC to $1M
- Chinese-style growth model in the US
Former BitMEX CEO Arthur Hayes has issued bold predictions in his latest article “Black or White,” discussing the impact of Trump’s economic policies on the global economy. Hayes argues that Trump’s approach could lead to a significant depreciation of the US dollar (USD), a scenario that would paradoxically benefit cryptocurrencies like Bitcoin.
According to Hayes, a drop in the value of the dollar is imminent due to current policies. While such a scenario would be adverse for the US currency, he suggests that Bitcoin could reach stratospheric values, reaching US$ 1 million. The reason? An unprecedented expansion of credit that is necessary to manage the US debt-to-GDP ratio, which has been growing for decades.
According According to Hayes, the effort to return the debt-to-GDP ratio to 2008 levels of around 70% would require an injection of approximately $10,5 trillion in new credit. Such an expansion could trigger a dramatic rise in asset prices, with Bitcoin in the spotlight due to its deflationary nature and limited supply.
Bitcoin, unlike fiat currencies, operates on a fixed supply of coins, making it an attractive asset for hedging against inflation. “As the circulating supply of Bitcoin dwindles, a large amount of fiat money around the world will compete for safe haven assets, not just from the U.S., but also from investors in China, Japan and Western Europe. Buy and hold for the long term,” Hayes said.
Another point Hayes makes is China’s economic model, which he describes as state capitalism with heavy government intervention, something he calls “American Capitalism with Chinese Characteristics.” Hayes suggests that the U.S. could benefit from adopting a similar strategy, using debt-financed spending as a permanent economic tool.
This cycle of debt and inflation could, according to Hayes, significantly increase the demand for Bitcoin, further boosting its value. Hayes’s view not only reflects a deep analysis of monetary and fiscal policies, but also highlights the growing role that cryptocurrencies could play in an unstable global economic landscape.
At the time of publication, the price of BTC was quoted at US$87.812,98, up 3% in the last 24 hours.
