Arthur Hayes Criticizes Donald Trump, Reveals Why US Election Outcome Doesn’t Matter

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As a seasoned crypto investor with years of experience in the industry, I can’t help but agree with Arthur Hayes’ insightful take on the political landscape and its impact on cryptocurrencies. While many may view Trump as pro-Bitcoin due to his unconventional approach to governance, it’s essential to look beyond the headlines and focus on actual policies.

Arthur Hayes, the founder of BitMEX and CEO of Maelstrom, expressed that Donald Trump may not necessarily be a strong supporter of Bitcoin, contrary to common belief among many cryptocurrency holders. Instead, Hayes suggests keeping an eye on the developments in the crypto space following the November election for a clearer picture.

However, he believes that, whoever wins the Election – won’t impact cryptospace too much.

Arthur Hayes Warns Crypto Holders: Don’t Mistake Trump as Pro-Bitcoin

Reflecting on a recent conversation with Channel News Asia, I, as an analyst, find myself compelled to share insights from Arthur Hayes, the BitMEX founder. In this discussion, he appeared critical of former President Donald Trump. Contrary to popular belief among cryptocurrency holders, Hayes suggested that Trump was not pro-Bitcoin during his last term. Instead, he emphasized that there were no crypto-friendly policies implemented during Trump’s presidency.

He stated:

It seems that some crypto holders might mistakenly assume Trump is a Bitcoin supporter, but during his four-year tenure, he didn’t introduce any beneficial policies for cryptocurrencies. Neither Kamala Harris nor Joe Biden has done so either. So, it remains to be seen what they will do about crypto, but we do know that they plan on printing money.

If Trump reduces taxes and Kamala boosts welfare benefits, savings should increase. This could potentially prompt the U.S. government to borrow more and print money to cover the costs, which might stimulate the economy and benefit cryptocurrencies like Bitcoin.

He noted that regardless of a Trump or Harris presidency, money printing and increased US debt issuance could ultimately boost Bitcoin and other crypto assets, driven by policies like tax cuts or welfare spending.

My recent interview with @ChannelNewsAsia

— Arthur Hayes (@CryptoHayes) October 31, 2024

According to Hayes, if Trump wins the election, he plans to adopt a weak U.S. dollar policy. In his view, this could be advantageous for cryptocurrencies, gold, stocks, and oil prices as well. Interestingly, he believes that Kamala Harris would also pursue the same strategy, but perhaps at a different pace.

China’s Stimulus Will Fuel Bitcoin Boom

Arthur Hayes posits that the U.S. Federal Reserve’s rate reduction is akin to “calm before the storm.” In essence, he believes this means that China is continuing its stimulus measures due to their preference for a robust yuan. Furthermore, he predicts that cryptocurrencies would thrive in times of geopolitical conflict.

In a noteworthy change in direction, the Federal Open Market Committee (FOMC) has reduced interest rates by 0.5%, signifying a break from almost four years of tightening monetary policy. This move, led by the Federal Reserve and its chairman, Jerome Powell, hints at potential further cuts depending on future economic circumstances. This relaxation reflects the Fed’s adaptability to new economic difficulties and their dedication to maintaining growth in the face of changing financial stresses.

According to Hayes, China’s move towards economic stimulus or “quantitative easing” could fuel Bitcoin’s next growth spurt. This transition is driven by China’s need to address its most severe economic downturn in decades, which may lead them to relax their stringent lending policies such as the “Three Red Lines,” and instead opt for quantitative easing.

Additionally, it’s anticipated that revitalizing the economy will, in turn, provide an unspoken foundation for Bitcoin growth in China. As more and more yuan flow into circulation, Bitcoin’s global allure is likely to increase due to its perceived value.

As China prepares to pump funds into its economy, Arthur Hayes anticipates rising inflation and views Bitcoin as a superior safeguard. During a recent conversation, the creator of BitMEX highlighted that increased money supply frequently results in inflation, making Bitcoin an increasingly appealing refuge.

Hayes describes China’s anticipated economic stimulus as akin to “monetary chemotherapy.” He forecasts that an influx of liquidity into the market will occur, potentially causing local currencies to devalue. Under such circumstances, he speculates that Bitcoin could experience growth as it may be seen as a protective asset by people seeking to safeguard their funds.

China’s QE Won’t Sink the Yuan, But It Could Propel Bitcoin

Due to its distinctive circumstances, China’s currency is less likely than many other nations’ currencies to experience a collapse during quantitative easing, a situation that may cause such instability in other economies.

One way to rephrase the given text in a more natural and easy-to-understand manner is as follows:

The structure enables China to overflow its economy with funds, which it currently does, without facing a potential currency crisis – a situation that financial expert Arthur Hayes thinks could increase the attractiveness of Bitcoin as a protective asset for China’s wealthy class.

From my perspective as an analyst, I concur with his assertion that the economic policies of any single nation cannot control Bitcoin’s trajectory, making it a favorable asset during periods of inflation. Furthermore, I share Hayes’ conviction that China’s affluent individuals may soon view Bitcoin as a dependable store of value in times of rising prices.

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2024-10-31 14:20