Bitcoin Bullish Predictions: Arthur Hayes on $1 Million by 2028
Bitcoin Could Face a Spike Due to Central Bank Money Printing: Arthur Hayes Predicts
Bitcoin's journey to the stars? That's the prediction from Arthur Hayes, the crypto entrepreneur and former BitMEX boss. In a blog post, Hayes - known for his consistent bullishness on Bitcoin - forecasts that the digital currency could hit $1 million by the year 2028.
Hayes' 7,000-word post delves into economics, politics, wealth, and philosophy. It features a rather unexpected photo of musician Lizzo. In it, he asserts that the biggest cryptocurrency could surge due to an evolving macroeconomic environment.
Global Shifts Propelling Bitcoin
Hayes suggests that a likely outflow of foreign investment and the devaluation of the dollar could power Bitcoin to $1 million. He ties this prediction to the next presidential election and the potential future advent of a less crypto-friendly president.
Shifting away from tariffs to capital controls seems a likely progression, according to Hayes. He believes this policy change, coupled with the Fed's response to capital leaving the U.S., will drive the Federal Reserve to print money. This move will prompt investors, concerned about money printing, to flee the U.S. and seek alternative investments.
Safe Harbor in Turbulent Seas
Hayes views Bitcoin as "the perfect and only lifeboat for global capital that must leave America and elsewhere." He bases this opinion on Bitcoin's features as a decentralized currency, immune to government control and manipulation.
Hayes has previously argued that Bitcoin would thrive under American monetary policies due to excessive money printing. The crypto market indeed saw significant surges during the pandemic, as the country's central bank pushed interest rates down to zero and flooded the market with new dollars.
(Edited by James Rubin)
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Underlying Enrichment Insights:
- Monetary Easing and Inflation: Hayes argues that central banks, in response to economic pressures, will resort to aggressive monetary easing. This includes massive liquidity injections, pushing down bond yields and inflating asset prices, which benefits alternative assets like Bitcoin as a hedge against inflation.
- Loss of Trust and Capital Flight: Global loss of trust in traditional financial systems and instruments could lead investors (including Europeans) to move their capital from traditional assets to alternatives like Bitcoin, as they seek safe havens during times of volatility and eroding confidence in government bonds and fiat currencies.
- Anticipated Capital Controls: The potential anticipation of capital controls could accelerate the flow of capital into alternatives like Bitcoin. This is driven by the erosion of trust in government bonds and fiat currencies, as well as a broader shift towards liquidity and safety outside the traditional financial system.
[1] https://www.investopedia.com/terms/q/quantitativeeasing.asp[2] https://www.nasdaq.com/articles/why-central-banks-are-buying-bitcoin-2021-05-18[3] https://www.businessinsider.com/bitcoin-investors-evaporating-trust-us-bonds-2019-6[4] https://www.ft.com/content/f6469b7a-e075-448d-915d-b714cb9bc25f[5] https://www.ccn.com/bitcoin-is-the-ultimate-inflation-hedge-crypto-expert-says/
- Arthur Hayes, a renowned crypto entrepreneur, predicts that Bitcoin, the biggest cryptocurrency, could surge to $1 million by 2028, as a result of an evolving macroeconomic environment.
- Hayes suggests that a potential outflow of foreign investment and the devaluation of the dollar could power Bitcoin's growth, linking this prediction to the next presidential election and the potential election of a less crypto-friendly president.
- In his 7,000-word post, Hayes also highlights the role of shifting policies, such as a likely progression from tariffs to capital controls, and the Federal Reserve's response to capital leaving the U.S., in driving the digital currency's price.
- Hayes views Bitcoin as a "lifeboat for global capital" due to its decentralized nature, making it immune to government control and manipulation.
- The crypto market, particularly Bitcoin, has shown significant growth during periods of monetary easing, excessive money printing, and low interest rates, as investors seek safe havens like altcoins and Bitcoin as a hedge against inflation.
