Arthur Hayes, co-founder of the crypto exchange Bitmex, has shared his positive outlook on Bitcoin’s future, especially in light of recent interest rate cuts by major central banks. Hayes has stated that all these actions could help a lot for the subordinate benefit of Bitcoin. Recently Hayes opined on the persisting trend of rate cuts with the U.S Federal Reserve, Bank of England, and the European Central Bank. He noted that all these central banks are opting for a reduction in interest rates despite inflation still being above target levels. Hayes concurs with this by saying that it could bring about more expansion of the money supply and more inflation. Hayes pointed out that if the American economy starts to slow down, perhaps experiencing a recession, the Federal Reserve can lower
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Arthur Hayes, co-founder of the crypto exchange Bitmex, has shared his positive outlook on Bitcoin’s future, especially in light of recent interest rate cuts by major central banks. Hayes has stated that all these actions could help a lot for the subordinate benefit of Bitcoin.
Recently Hayes opined on the persisting trend of rate cuts with the U.S Federal Reserve, Bank of England, and the European Central Bank. He noted that all these central banks are opting for a reduction in interest rates despite inflation still being above target levels. Hayes concurs with this by saying that it could bring about more expansion of the money supply and more inflation.
Hayes pointed out that if the American economy starts to slow down, perhaps experiencing a recession, the Federal Reserve can lower them even more and pump more money into the economy. According to him, this could result in higher inflation rates that would be disadvantageous for some firms, although favorable for Bitcoin.
Bitcoin’s Deflationary Nature Could Lead to Massive Value Increase
Bitcoin, Hayes believes has a feature that differentiates it from rivals since it has a limited number that can be produced and these are 21 million. This makes it a deflationary asset, which can be valuable as inflation increases based on the current model for valuing such an asset.
Hayes is confident that as more central banks are going to print money, Bitcoin may embark on another upward trend. From his thinking, he posits that inflation presents a problem for some corporations, although it would benefit Bitcoin because it is scarce – an infinitely utilizable digital asset that is only available in a fixed number. He even described this potential surge as ‘a trip at lightspeed 2 Da Moon,’ which further affirmed his convictions about Bitcoin’s potential for increased value.
Altogether, Arthur Hayes seems to have a positive outlook on Bitcoin centralized financial more so if only the central banks undertake to lower their rates and increase the money supply hence inflation. He is convinced that they possess deflationary characteristics of Bitcoin, and, therefore, could become a valuable asset in the years to come.