🌋 Why Bitcoin Will Go Higher: Arthur Hayes Shares His Analysis
posted 12 Nov 2024
In his new article “Black or White,” Hayes predicts the US dollar’s weakening under Trump’s presidency as the new policy will focus on economic growth by resourcing domestic industries, creating jobs, and limiting immigration.
Hayes expects bank credit expansion as more companies will take loans for production operations. The author refers to this monetary policy as quantitative easing (QE) for poor people, drawing parallels between China’s former president Deng Xiaoping’s approach and Trump’s.
According to him, wealth distribution in the US will change, noting that the 2008 financial crisis caused elites to be favored in the regime.
The expansion of bank credit is expected to increase inflation, leading to the US dollar’s devaluation. Hayes predicts that people holding long-term bonds and savings deposits will lose money because the yield on such investments will be intentionally kept below inflation. He says:
Instead of saving in fiat bonds or bank deposits, purchase gold (the boomer financial repression hedge) or Bitcoin (the millennial financial repression hedge)
Hayes added that he is sharing his thoughts, which readers should not perceive as financial advice. However, that’s what he is doing with his portfolio.
The growing bank credit, clearer regulations, and increased Bitcoin investments are how Hayes expects BTC to hit $1 million. These changes won’t be limited to the US.
As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western EuropeansHayes concluded.
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