Founder of BitMEX Offers Three Key Recommendations to Investors

BitMEX founder Arthur Hayes recently published an interesting article studying the dynamics of historical economic cycles, specifically distinguishing between local inflation cycles and global cycles.
Hayes
believes that in the current economic environment characterized by local inflation pressures, Bitcoin has become a better and safer asset compared to gold. He attributes this to Bitcoin’s independence from state control, making it a reliable inflation hedge.
As part of his analysis, he examined the prevailing sentiments within the cryptocurrency community, including bull market debates and
Bitcoin’s
collaboration with large US tech companies. He combined these views with discussions on shifting geopolitical dynamics and global monetary policies, arguing that the world is moving from a US-dominated unipolar order to a multipolar one involving emerging powers such as China, Brazil, and Russia.
Hayes proposed an investment framework based on belief systems. He suggested that investors who trust the system but not its leaders should invest in stocks, while those who trust both the system and its leaders should consider government bonds. For those skeptical of both, he recommended assets independent of government control, such as gold or Bitcoin.
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During periods of domestic inflation, Hayes recommended primarily investing in gold and Bitcoin, avoiding stocks and bonds. Conversely, during global deflation phases, he advised favoring stocks over gold and bonds.
Hayes highlighted that government bonds are susceptible to political influences such as monetary easing and fiscal policies aimed at avoiding direct taxation, and emphasized Bitcoin’s resilience as an asset in uncertain economic environments shaped by changing geopolitical and monetary conditions.
Hayes’ views underscore Bitcoin’s strategic role as a sustainable asset in the face of economic uncertainty and geopolitical changes, offering a distinct perspective for guiding investment choices in dynamic global markets.