JAKARTA In the midst of the collapse of a number of banks in the US, one of the founders of the BitMEX crypto exchange, Arthur Hayes expressed his opinion about the possibility that the US would return to printing large amounts of money.
According to Hayes, this condition could trigger an increase in the price of certain assets. Based on an article on its official blog page, the former CEO of BitMEX explained that the US government could stop swelling the supply of money in the US if it let banks collapse. Even so, the political elite will not approve of the scenario.
"There is only one way to prevent money printing, namely if the US Government decides to let the banking system really fail but I have full confidence that US political elites prefer to print money rather than adjust the size of the banking system," Arthur Hayes wrote.
Hayes said that the US and the Federal Reserve had reached a point where they did not care which steps were taken fiscalally. Therefore, Hayes assesses Bitcoin (BTC) and it is likely that gold will rise to a higher level. He considered various possible results from high inflation and higher interest rates, or down inflation and lower interest rates.
"If inflation remains high and the Fed continues to raise interest rates or even just keep it at current levels then more banks will fail, we will see more TBTF bailouts (too big to fail), and the government will continue to support the creation of a larger TBTF bank. This will expand the supply of money and gold, and Bitcoin will rise," Hayes said.
Furthermore, he added "if inflation drops and the Fed cut interest rates quickly, in the end banks won't fail." But, it will lower the price of money, and gold and Bitcoin will rise."
The founder of BitMEX assesses that the increase in currency inflation will actually increase the price of Bitcoin and gold, as well as other commodities. The decline in the value of the currency is actually beneficial for other assets.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
