bitcoin and Ether as Reserve Assets

BitMEX founder Arthur Hayes believes that bitcoin and Ether are the main crypto assets, while he considers everything else to be a “shitcoin.” He clarified that he has positive feelings towards shitcoins and is not a maximalist, but he emphasized that bitcoin is always the first choice because “bitcoin is money and only money.”

Hayes discusses the best investment to outperform the impact of currency debasement. According to him, the smartest choice is to invest in cryptocurrencies, as nothing else has performed better than the increase in central bank balance sheets like crypto.

Hayes’s Analysis of Janet Yellen’s Strategies

Hayes provided a direct evaluation of Janet Yellen’s influential role as the United States Treasury Secretary and the potential ramifications of her decisions on the global financial system. He described Yellen as the most powerful person in the financial world and highlighted her authority to exclude entities from the dollar-dominated financial system, which he likened to a potential “death sentence.”

In his recent blog post, Hayes also criticized government-produced inflation statistics, suggesting that they may downplay the true effects of inflation.

He specifically pointed out the uncertainties and potential risks in Yellen’s strategies, particularly in stabilizing the economy, issuing short-dated bills, and managing the balance between the Reverse Repo Program (RRP) and Treasury General Account (TGA). He hinted that Yellen’s actions may result in a significant injection of liquidity into the financial markets.

Hayes argues that this influx of liquidity, combined with the actions of other major central banks globally, could lead to a depreciation of the dollar. As more dollars circulate in the system, the relative value of the currency may decrease compared to other major currencies like the yuan, yen, and euro, potentially contributing to a weakened dollar.

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bitcoin as a Hedge

Amidst the fiat liquidity in the global markets, Hayes believes that investing in big tech such as AI could be a wise move. However, he argues that investing in cryptocurrencies, especially bitcoin, is the smartest move. He encourages investors to consider cryptocurrencies, particularly bitcoin, as a hedge against potential fiat currency debasement.

“The first stop is always bitcoin. bitcoin is money and only money. The next stop is Ether. Ether is the commodity that powers the ethereum network, which is the best internet computer. bitcoin and Ether are crypto’s reserve assets. Everything else is a shitcoin.”

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