• Bitmex’s Co-Founder Predicts Gold at $10,000 and Bitcoin at $1 Million

  • Arthur Hayes, the co-founder of the cryptocurrency exchange Bitmex, wrote a blog article titled “Energy Cancelled” on March 16 that explains the economics behind the ongoing Russia-Ukraine conflict. In his 26-minute opinion piece, Hayes notes that historians may look back on February 26, 2022 as the date when the “Petro Dollar / Euro Dollar monetary system” came to an end.

    Speculation on a Free-Standing International Monetary and Financial System, Separate from the Petrodollar and Eurodollar Monetary Systems

    Since the commencement of the Russia-Ukraine conflict, there has been a lot of economic turmoil, as global financial conditions have tightened and Russia has been sanctioned by a huge number of countries. Analysts and economists fear the conflict and sanctions will harm the global economy, and the International Monetary Fund (IMF) issued a warning on March 5 that the “economic ramifications are already quite significant.” A bill sanctioning Russia’s gold holdings was introduced by US lawmakers a few days following the IMF warning.

    According to reports, Russia’s finance minister, Anton Siluanov, stated on March 13 that half of the country’s gold and foreign reserves had been frozen. “This is about half of what we have in reserve.” “We have a total reserve sum of roughly $640 billion,” Siluanov stated. “Around $300 billion of these reserves are currently unavailable for utilization,” the Russian finance minister noted.

    The words of Siluanov have sparked discussion about the Eurasian Economic Union (EAEU) and China forming an independent international monetary and financial system. Furthermore, there is a significant lot of ambiguity and confusion about the Russian gold that has been frozen. In his piece “Say hello to Russian gold and Chinese petroyuan,” writer Pepe Escobar points out that there is a puzzle to be solved. Escobar’s report inquires, “Where is that frozen Russian gold?”

    Arthur Hayes, a co-founder of Bitmex, explains the ramifications of canceling the world’s largest energy exporter.

    Meanwhile, Arthur Hayes, the co-founder of the cryptocurrency exchange Bitmex, wrote a blog post on March 16 about delisting the world’s greatest oil producer and the demise of the “Petro Dollar / Euro Dollar monetary system.”

    Hayes’ blog entry is lengthy, but it is detailed and full with cited information. Hayes emphasizes that historians will most certainly refer to February 26, 2022 as the end of the “Petro Dollar” and “Euro Dollar”-controlled monetary system.

    Furthermore, Hayes believes that a financial catastrophe will occur, and that it will affect every area of the global financial system. According to the Bitmex co-blog founder’s post, “I am 100 percent positive that there will be a financial catastrophe of epic proportions dependent on losses suffered by commodity producers and dealers who touch every element of the globalised financial system.” Hayes continued, ”

    Without major undesired and unanticipated consequences, the world’s top energy producer — and the collateral these commodity resources represent — cannot be removed from the financial system.

    Vulnerabilities in Permissioned, Centralized Digital Networks

    The Bitmex co-blog founder’s article explains how the United States and the dollar came to dominate the financial world. America used to be the leading industrial and manufacturing power, but these days, according to Hayes, “America exports finance, not commodities, to the world on a macro scale.”

    Hayes also discussed fiat currencies and how humans have developed methods for sending “value electronically across centralised permissioned digital networks.” Despite the fact that the SWIFT payments network is maintained by a variety of countries, Hayes maintains that it is “essentially controlled by the United States and the European Union.”

    When a controlling nation “decides to limit access to the network to any players,” Hayes adds, there are vulnerabilities. “Should you’save’ in assets that ride on this centralised, permissioned digital monetary network?” he argues the point demands. Given that a nation state will not “expropriate your’savings,'” the blog post emphasizes that there is a level of trust. In his blog post, the Bitmex founder adds:

    Remember, you don’t own anything; you simply’rent’ your net worth from the organization that runs the centralised, permissioned fiat digital monetary network, whether you’re an individual or a nation.

    Hayes believes that if gold rises beyond $10,000, Bitcoin will rise to a million dollars.

    Hayes goes on to explain that he believes gold would “phase shift” far higher than it is now in the blog post. “We could see fantastic prices for gold that seem unimaginable,” he believes, as competition and demand “drive the marginal last price way north of $10,000.”

    According to Hayes, if gold rises to $10,000 per ounce or above, it will “psychologically shock” the world’s financial markets. Hayes is convinced that the majority of hard assets used to hedge will rise in value, including bitcoin (BTC).

    “Bitcoin will rise to $1,000,000.00 as gold rises above $10,000.” “The largest wealth transfer the world has ever seen will be triggered by the bear market in fiat currencies,” Hayes explains. He goes on to say that he considers gold and bitcoin to be hard money assets. “They’re both hard money, one analog (gold) and the other digital (bitcoin),” Hayes writes.

    The Bitmex CEO explains the advantages and disadvantages of holding wealth in gold, as well as how it can be inconvenient to store, at the end of his blog post. “Most readers don’t have a vault in a freeport to store their yellow pet rocks,” Hayes adds. “Rather, you’d desire a more transportable hard store of riches.”

    “You cannot eliminate the largest energy provider from a monetary system without significant implications,” Hayes concludes his blog post. After the veil of war has dissipated, he predicts that the economy will “present a situation where hard money instruments govern all global trade.”

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