Arthur Hayes, the former head of major cryptocurrency exchange BitMEX and now acclaimed essayist, has released his new book, The Denominator.
Arthur Hayes Publishes New Article Urging Readers to “Get Your Bitcoins and Get Out!” https://t.co/9W4L9ruAmD pic.twitter.com/dERlvQ0gZ8
— Kyptos (@azcoinnews) May 9, 2023
In the article, Hayes compared the current state of the US banking industry to friends splitting the bill at a nightclub, trying to answer the question: Who will pay for the policy-driven banking crisis caused by the Fed’s deflation?
The rescue package offered by Hayes, according to the authors, would not only ensure safety but also the ability to profit in a financial storm.
If we try to answer the authors’ questions simply, we can say that this crisis will be resolved at the “cost of the lives” of small and medium-sized banks, which Hayes called “not too big to fail”.
He believes that their assets will definitely be systematically absorbed by big banks and guaranteed by the US government to make up for the loss of customer deposits.
However, Hayes also pointed out that when the Fed changes policy, the real value of money in people’s pockets will inevitably decline. To address this, Hayes identified two potential paths forward: lowering the value of money by lowering the Fed’s interest rate or increasing the money supply, both of which could lead to a “cheaper” currency.
Hayes ultimately sees the rescue of bitcoin and gold as a means of storing value outside the banking system. He urged readers to “get your bitcoins and go” if US politicians don’t let the banking system crash.
Hayes’ article is timely in the ongoing debate about the role of cryptocurrencies and the future of U.S. banking. His arguments about the possibility of smaller banks being absorbed by larger ones and the need for alternative stores of value beyond traditional banks are likely to be debated and debated.
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