The co-founder and former CEO of BitMEX, Arthur Hayes, predicts that the devaluation of money will progressively eat away at the majority of people’s wealth. This is due to the enormous public debt amassed by the world’s largest economies, which Hayes believes will force governments to “inflate it away” through money printing. The only way individuals can protect themselves from this destruction of fiat wealth is by investing in assets outside the traditional financial system, such as crypto. Unlike fiat currency, the purchasing power of crypto does not decrease relative to the cost of energy.
In a recent interview with Cointelegraph, Hayes explained that his investing goal is to preserve capital so that he can continue to consume the same amount of energy in the future. However, the supply of available crypto assets is relatively small compared to the total amount of debt in the economy. As a result, only a few individuals will be able to protect their capital while the majority see their wealth decline.
Hayes also believes that the US government’s crackdown on crypto is an attempt to prevent the masses from abandoning the traditional financial system and fleeing to crypto assets. He argues that the government wants people’s capital to remain in the system, even if it means a gradual loss of purchasing power over time. For more information on Hayes’ investment thesis on crypto, watch his exclusive interview on our YouTube channel and don’t forget to subscribe!