Former BitMex CEO Arthur Hayes warns that Bitcoin (BTC) is a solution to negative real rates amid the current financial crisis.
In a recent article Arthur Hayesformer CEO of BitMex, highlighted the critical importance of Bitcoin (BTC) as the global financial landscape faces increasing challenges. Hayes, known for his insightful perspectives on digital currencies, pointed out that real interest rates in the United States are actually negative.
He calculated this by subtracting the nominal GDP growth rate of 6.3% in 3Q23 from the one-year Treasury yield of 5.4%, to arrive at a real rate of -1.1%.
Hayes urged individuals to think carefully about their financial choices, advising against letting the government profit at their expense. Instead, he recommended investing in tech stocks, gold and BTC to safeguard and increase their purchasing power.
it is not the first time Hayes shared his views on the central role of Bitcoin in the current economic climate. Notably, he has previously written on the subject in his essays, albeit with an error in the formula he used. Correctly, the real rate is calculated by subtracting inflation from the nominal rate rather than GDP.
Yet for Hayes, the main driver behind the call to invest in Bitcoin lies in the persistent problem of inflation. He has previously highlighted how fiat currencies around the world are losing purchasing power due to the extensive quantitative easing and stimulus programs implemented by central banks in response to pandemic-induced financial policies.
As global economic uncertainties loom, Hayes’ warning rings loud and clear: It’s time to bet on Bitcoin in the face of the looming financial crisis.