- Arthur Hayes predicts governments will further drive inflation.
- Policies will lead to further debasement in national currencies.
- That’s positive for cryptocurrencies, which will act as inflationary hedges, the BitMex co-founder argued.
The next couple of months will be the “perfect time” for investors to top up their cryptocurrency positions, according to BitMEX co-founder Arthur Hayes.
The continuous debasement of major global currencies by their respective governments has created a favourable environment for assets like Bitcoin, Hayes wrote in a Tuesday blog post.
“Whatever the flavour of crypto risk excites you, the next few months will present a golden opportunity to add to positions,” Hayes wrote.
“I want to remind readers why the bull market will continue and prices will get sillier on the upside,” he said.
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His argument?
Crypto is heading into a period of less volatility, which will make it a perfect hedge against rising inflation, Hayes said.
The BitMEX co-founder predicted that inflation will continue to rise as governments in the US, China, the European Union, and Japan keep “debasing their currencies to deleverage their government’s balance sheet.”
As it stands, the US’ national debt amounts to $34.6 trillion, or roughly $102,000 for every individual.
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And according to Hayes, the situation is only getting worse.
Upcoming elections in the US and elsewhere will exacerbate inflation, Hayes argued.
To stay in power, politicians often promise benefits without the need to raise taxes by increasing the national debt, aiming to boost voter support without immediate economic strain, he said.
This approach reduces the debt’s real value over time but can be detrimental to the economy.
To be sure, Hayes noted that there is a chance that inflation could drop and urged investors to “reassess your crypto conviction” if that happens.
“But until that time, let your winners run,” he said.
Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.