Benzinga - Arthur Hayes, co-founder of BitMEX, on Thursday talked about the Federal Reserve’s fight against inflation and its potential implications for Bitcoin (CRYPTO: BTC).
What Happened: Hayes believes that Bitcoin, with its finite supply, stands to benefit from the Fed’s current strategies.
He said in a blog post, “Bitcoin has a finite supply, and therefore as the denominator of fiat toilet paper grows, so will Bitcoin's value in fiat currency terms.”
Hayes emphasized that other than big tech and cryptocurrencies, he sees few investment options that can offer better returns than parking money at the Fed and earning nearly 6% yield.
"One of Bitcoin's value propositions is that it is the antidote for a broken, corrupt and parasitic fiat banking system. Therefore, as the banking system falters, Bitcoin's value proposition grows stronger," he wrote.
The BitMEX crypto exchange co-founder noted that "Bitcoin benefits from increased fiat liquidity. Rich people don't need real stuff; they need financial assets so they can effortlessly consume to their hearts desire."
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Why It Matters: Arthur spoke about the ongoing crackdown on cryptocurrencies. He said, "The ongoing crypto crackdown in the US and West, in general, is focused on making it hard to do business for operators who don't power lunch at The Racquet & Tennis Club on Park Ave in New York.”
He raised a question regarding the contrasting treatment received by different entities seeking approval for Bitcoin-related ventures. “Ponder this: how is it that the Winklevii – two tall, handsome, Harvard-educated, cis-gendered, tech billionaire men – couldn't get their Bitcoin ETF approved in America, but it appears it's going to be smooth sailing for crusty old Larry Fink over at BlackRock?”
He hinted at the role BlackRock’s more evolved ESG (Environmental, Social, and Governance) policies might play in gaining regulatory support, adding a touch of amusement as he joked, “Maybe it's because BlackRock's ESG policies are more evolved, LOLZ… The 50 Shades of Beige, Midtown Manhattan Edition.”
He added, “What I'm trying to say is that crypto itself was never the problem – this issue is who owns it.”
Price Action: At the time of writing, BTC was trading at $26,015.84, down 1.8% in the last 24 hours, according to Benzinga Pro.
Photo: outsideclick from Pixabay.
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