Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, believed President-elect Donald Trump's policies would weaken the dollar, driving up the value of scarcer assets like Bitcoin BTC/USD significantly.
What happened: In a blog post titled "Black or White," published Tuesday, Hayes argued that the Trump era would see a massive expansion in bank credit, leading to an increased money supply.
He said that Republicans would pass bills to encourage manufacturers to establish onshore production. Subsidies and tax credits would be doled out to support such re-shoring initiatives, for which the government would incur more debt.
A devaluing dollar would heighten demand for Bitcoin, Hayes added.
"As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western Europeans. Get long, and stay long."
A Bitcoin bull himself, Hayes anticipated the leading cryptocurrency to rise to a per-unit price of $1 million eventually under these circumstances.
Why It Matters: One of the keen observers of the cryptocurrency market and the U.S. macro economy, Hayes has constantly advocated Bitcoin’s safe haven attributes, even going so far as to say it is superior to gold.
Hayes maintains that while digital fiat, or central bank digital currencies, match cryptocurrencies in terms of speed, they pose inflationary challenges owing to government involvement.
He famously said that the presidential election was just a distraction and that Bitcoin was poised for a long-term bullish trend regardless.
Price Action: At the time of writing, Bitcoin was exchanging hands at $86,494.50 down 2.90% in the last 24 hours, according to data from Benzinga Pro.
Photo via Shutterstock.
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