Arthur Hayes, co-founder of BitMEX, has proclaimed Bitcoin a superior safe-haven asset in today’s economic climate, surpassing gold due to its decentralized nature and rapid transaction capabilities. In a recent blog post, Hayes analyzed historical economic cycles, asserting that the current local cycle of inflation, driven by geopolitical tensions and the shift to a multipolar world order, favours Bitcoin over traditional assets like gold.
Hayes outlined how economic cycles, divided into local (inflationary) and global (deflationary) periods, influence investment strategies. He noted that during local cycles, financial repression funds significant expenditures, leading to inflation, as seen in the US from 1933 to 1980. In contrast, global cycles, like from 1980 to 2008, promote deregulation and favour stock investments.
In the current cycle, which began in 2008, Bitcoin has emerged as a prominent asset. Its cryptographic blockchain technology offers secure and swift transactions, allowing it to outperform gold. Hayes emphasized understanding these cycles for informed investment decisions. Supporting his view, QCP Capital analysts noted Bitcoin’s historical positive performance in July, suggesting favourable market conditions ahead.
