Former BitMex CEO Arthur Hayes underlined the vital significance of Bitcoin (BTC) in a recent X article, given the growing difficulties facing the world banking system. Hayes, who is well-known for his perceptive viewpoints on virtual currencies, made the observation that real interest rates in the US are really negative.
He arrived at a real rate of -1.1% by deducting the 3.Q23 nominal GDP growth rate of 6.3% from the 5.4% one-year Treasury yield.
Hayes cautioned against allowing the government to profit at the expense of people, urging them to carefully weigh their financial decisions. Rather, he suggested that they increase and protect their buying power by making investments in gold, bitcoin, and technology stocks.
https://x.com/CryptoHayes/status/1717667917595378113?s=20
Hayes has already expressed his opinions on the critical role that Bitcoin plays in the current economic environment. Remarkably, he has written about the subject in the past in his writings, despite applying the wrong method. It is accurate to deduct inflation from the nominal rate—rather than GDP—to determine the actual rate.
However, Hayes believes that the persistent problem of inflation is what motivates the recommendation to invest in Bitcoin. He previously emphasised how massive quantitative easing and stimulus programmes put in place by central banks in reaction to pandemic-induced financial policies are causing fiat currencies all over the world to lose buying power.
Hayes’s caution that now is the right moment to invest in Bitcoin in light of the approaching financial catastrophe is very relevant as concerns about the state of the world economy grow.
