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Coinpaprika 2024-12-19 08:52:03

Arthur Hayes Urges Trump to Devalue Gold and Back Bitcoin

Arthur Hayes, the CEO of BitMEX, has proposed that the United States devalue the price of gold and establish a Bitcoin reserve to boost its economic growth. In his latest article, Hayes suggests this bold move could help the Treasury quickly generate dollar credits, which could then be used to purchase Bitcoin ( BTC ). He believes this approach would strengthen the economy and secure the U.S.’s position as a global financial leader. Hayes argues that devaluing gold could inject significant funds into the Treasury General Account (TGA), bypassing the need for international negotiations to weaken other currencies. Currently, gold is valued at $42.22 per ounce by the Treasury. Hayes suggests that increasing its value to $10,000 or $20,000 per ounce would immediately grow the TGA balance, providing resources to stimulate the economy. According to Hayes, the first 100 days of Trump’s administration offer a limited window to enact impactful policies, including a major gold devaluation. He predicts such a move could happen early in 2025, as it would allow the U.S. to enhance its competitiveness and promote domestic production. Hayes sees this as an opportunity for Trump to achieve swift economic progress and support Republican control of Congress. Creating a Bitcoin reserve, Hayes believes, would also secure the U.S.’s financial dominance. He explains that Bitcoin, often seen as "hard money" due to its fixed supply, would further strengthen the nation’s currency if held in significant reserves. Hayes predicts that if the U.S. government used dollars from a gold devaluation to buy Bitcoin , its price would soar, prompting other nations to follow suit in a competitive race for cryptocurrency reserves. Hayes warns, however, that time is a critical factor. The new administration would need to act quickly to show results before mid-term elections in 2026. He cautions that delays or unmet expectations could lead to market disappointment and a sell-off in cryptocurrencies and other Trump-related investments. Other nations, including Russia, Japan , and Canada, have already considered or implemented similar Bitcoin reserve strategies. Hayes highlights the growing interest in cryptocurrency reserves as a global trend that the U.S. cannot afford to ignore. He also notes that Bitcoin ETFs now manage more assets than gold ETFs, reflecting shifting market priorities. While Hayes acknowledges the challenges of implementing such policies, he emphasizes that devaluing gold is the fastest and most practical way to generate funds and stimulate the economy. He concludes that going big early is essential for Trump to make a lasting impact during his term.

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