The former CEO of cryptocurrency derivatives exchange BitMEX believes that in a “broken banking system”, investing in cryptocurrencies will help people protect themselves from the risk of losing funds.
Arthur Hayes explained why he considers cryptocurrencies to be a good alternative to traditional finance.
“I don’t care if you are a capitalist or a communist. Everyone got into big debts. The time has passed when this debt could be profited from. Therefore, everyone will suffer losses if he does not own cryptocurrencies or some gold – some kind of hard asset that is outside the traditional banking system, ”the crypto investor argues.
According to the former CEO of the BitMEX exchange, the collapse of banking institutions harms politics and the economy. However, instead of correcting the situation, American politicians and regulators are taking actions due to which the amount of public debt only accumulates and grows. Hayes mentioned the collapse of the Silicon Valley bank, which provoked a massive withdrawal of money from banks, as a result of which the US Federal Reserve (Fed) had to implement emergency lending.
The recent collapses of the banking giants have caused people to fear that they will not be able to get full access to assets, especially in institutions with a large amount of capital. This has increased public interest in alternative finance, including Bitcoin. Therefore, unlike large financial institutions that are suffering losses, the inflow of funds into the cryptocurrency market is increasing, Hayes argues.
“If we want cryptocurrency to become another financial system, people need to understand what exactly cryptocurrencies can replace or improve. Unfortunately, many people have no idea how money works, the banking system, how asset markets function,” complains the former head of BitMEX.
At the end of last year, Arthur Hayes suggested that in 2023 the cryptocurrency market could recover, since everyone who could go bankrupt had already collapsed. He has previously spoken out against central bank digital currencies, confident that governments can track user transactions with CBDCs.
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