Saviors or crashers? – The central banks have two main means of monetary interventions. either they print magic money for x or y “good reasons” (like saving banks in 2008), either they raise their key rate to fight inflation. The problem is that the markets are so used to these mood swingsthat they now almost only react to the decisions of central bankers. Bitcoin stands in ambush.
A “contagion” of the ease of printing magic money
With ratesinflation increasingly worrying that many regions of the globe are experiencing, the current fashion is rather to interest rate hikes among central bankers. But it is, as always, far from without perverse effects.
Arthur Hayesthe former CEO and co-founder of the BitMEX platform, is convinced that the consequences of these key rates will sooner or later lead to a switch to more money printing. And Bitcoin is already rubbing its hands.
In a recent blog post titled “Contagion”Arthur Hayes explains that the tightening current monetary policies (Quantitative TighteningWhere QT) will inevitably lead to a loop (like a vicious circle) towards policies ofrelaxations monetary (Quantitative EasingWhere EQ). In other words, to return the money board.
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Bitcoin and gold: future big winners against central bank currencies
To illustrate his point, Arthur Hayes takes up the recent (flagrant) example of the Bank of England (BoE). Indeed, at the end of September, the sharp rise interest rates on government bonds British debt (the country’s debt) forced the Bank of England to intervene urgently.
“80% of the most important central banks in the world will relapse into a form of money printing. Only the Fed (US Federal Reserve) remains resolute in the face of the bloodbath in the financial markets. Determined to follow through on her desperate quest to curb inflation. Inflation for which she is at least partially responsible, with the culmination of decades of terrible economic policies. With the icing on the cake, a possible world war. »
Arthur Hayes
In this coming chaos, two actors will do well, according to the founder of BitMEX. Faced with the depreciation of fiat currencies, the price of alternative currencies such asgold and Bitcoin should to skyrocket.
“Since the gold and cryptocurrency markets are much smaller in size than the trillions of fiat money that will be printed, (…) these assets will appreciate. »
Arthur Hayes is far from the only one bullish on Bitcoin’s appreciation. Indeed, the Bloomberg analyst Mike McGlone estimate that Bitcoin will hit $100,000. The whole question will be to know of how much will have depreciated purchasing power of those dollars by then. Looking back, the answer might be: greatly.
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