Arthur Hayes Urges US to Create Strategic Bitcoin Reserve | Airdrop Alert Pro

BitMEX CEO Arthur Hayes has suggested that the Trump administration should abandon the gold standard and lean more toward building strategic Bitcoin reserves.

Hayes believes that the best way for the United States to achieve economic prosperity is for the Treasury Department to create more dollars by lowering the price of gold in order to build up Bitcoin reserves.

Hayes advises Trump to abandon gold standard

According to Hayes latest Substack articlethis depreciation would allow the Federal Reserve’s Treasury General Account (TGA) to receive U.S. dollar credit.

These credits can then be injected directly into the economy. It eliminates the need for diplomatic efforts to convince other countries to devalue their currencies against the dollar. The bigger Gold depreciatesthe greater the credit.

Currently, the Treasury Department values ​​gold at $42.22 per ounce. From Hayes’ perspective, this is overrated. He explained that if incoming Finance Minister Scott Bessant considered a revaluation of $10,000 to $20,000 per ounce, the TGA’s balance would immediately increase.

“A rapid and significant devaluation of the dollar is the first step toward Trump and Bessant’s economic goals. It’s also something they can accomplish overnight without consulting domestic lawmakers or foreign finance ministers. Given that Trump has a year Time to make progress on some goals to help Republicans maintain control of the House and Senate, my base case is USD/Gold depreciation in the first half of 2025,” Hayes wrote.

What do Bitcoin reserves mean for the U.S. economy?

Arthur Hayes It is believed that this strategy would essentially increase the price of Bitcoin and other cryptocurrencies if the Treasury Department decided to use U.S. dollar credits to purchase Bitcoin.

Given that the United States already owns more gold than any other nation-state, it can do this by creating a gold reserve. Bitcoin Reserve. Therefore, this will establish the country’s financial hegemony in terms of owning the most powerful digital assets in the world.

Bitcoin is generally considered hard currency due to its fixed supply cap, and Hayes believes the strongest government fiat currencies will be those whose central banks hold the largest Bitcoin reserves.

In turn, governments that hold large amounts of Bitcoin will naturally implement policies that favor the growth of the cryptocurrency industry.

“If the U.S. government creates more dollars by devaluing gold and uses some of those dollars to buy bitcoinits fiat currency price will rise. This in turn will spur competitive sovereign purchases by other countries that must catch up with the United States. Then the price of Bitcoin will gradually increase because why would anyone sell bitcoin And receive fiat currency that the government is actively devaluing? ” Hayes explained in his article.

It is also important to consider that the United States is not the only country considering establishing a strategic Bitcoin reserve. As BeInCrypto reported earlier, Russian parliamentarians also suggested same.

Japanese lawmakers also made similar suggestions Earlier this month, Vancouver, Canada had Bitcoin reserve plan approved for the city council. Therefore, even if the United States does not act soon, its international competitors may.

However, in reality, Hayes does not expect the Treasury Department to purchase Bitcoin. However, gold’s depreciation creates dollars anyway, which can be injected back into the economy as goods and services, or used as financial assets.

Hayes’ sentiment does line up with market statistics, as Bitcoin ETF currently held More assets under management than gold ETF. These funds have been trading for less than a year.

How much time does Trump have?

Hayes shows fatigue High expectations among cryptocurrency investors How quickly can the incoming Trump administration implement changes that would benefit the cryptocurrency market?

He predicted it would take Trump at least a year to address fundamental domestic and international issues.

At the same time, given that most lawmakers will begin midterm election campaign Just one year after Trump took office.

Hayes predicts investors will regret it if patience runs short and market sentiment quickly turns negative.

“The market will immediately realize that Trump has up to a year to implement any policy changes on or around January 20. This realization will lead to a vicious sell-off in cryptocurrencies and other Trump 2.0 stock trades.”

Since Trump has so little time to actually create change, Hayes highlighted gold devaluation as the least time-consuming way to create money and stimulate the economy.

“People are impatient because they are desperate. Trump is a savvy politician who knows his base. To me, that means he has to act sooner rather than later, which is why my money is on him taking office The dollar depreciated sharply against gold at the beginning of the first 100 days. This was a simple way to quickly make U.S. production costs globally competitive,” he concluded.

Hayes is not alone in this view. Last month, the Republican Senator Loomis also proposed The Fed sold some of the gold to buy 1 million Bitcoins and fund the Bitcoin reserve.