Bitmex Co-Founder Predicts Gold Rising to $10K, Bitcoin Marching to $1M – Bitcoin News Featured

On March 16, Arthur Hayes, co-founder of cryptocurrency exchange Bitmex, published a blog post called “Energy Cancelled” which describes the economy behind the ongoing Russia-Ukraine war. Hayes explains in his 26-minute op-ed that historians can point to February 26, 2022, as the moment in history when the “Petro Dollar/Euro Dollar monetary system” ended.

Speculation about an international monetary and financial system independent and free from the petro dollar and euro dollar monetary system

There has been a lot of economic calamity since the beginning of the Russia-Ukraine conflict as financial conditions across the world became tighter and Russia was sanctioned by a large number of countries. Analysts and economists believe that the war and sanctions could have negative effects on the global economy and on March 5, the International Monetary Fund (IMF) warned that “the economic consequences are already very serious”. A few days after the IMF’s warning, US lawmakers introduced a bill that would sanction Russia’s gold reserves.

Reports indicated on March 13 that Russian Federation Finance Minister Anton Siluanov explained that half of the country’s gold and foreign reserves were frozen. “That’s about half of those reserves we had. We have a total amount of reserves of around US$640 billion,” said Siluanov. “Currently, we cannot use about $300 billion of these reserves,” added the Russian finance minister.

Siluanov’s statements led to speculation about an independent international monetary and financial system between the Eurasian Economic Union (EAEU) and China. Also, a lot of inaccuracy and confusion regarding Russian frozen gold. Journalist Pepe Escobar highlights in his report entitled “Say hello to Russian gold and Chinese petroyuan”, that there is a mystery to be unraveled. “Where is that frozen Russian gold?” Escobar’s report asks.

Bitmex co-founder Arthur Hayes outlines the fallout from canceling the world’s biggest energy exporter

Meanwhile, the co-founder of cryptocurrency exchange Bitmex, Arthur Hayes, published a blog post on March 16 that addresses the cancellation of the world’s largest energy exporter and the end of the “Petro Dollar/Euro Dollar currency system.”

The blog post written by Hayes is extremely long but comprehensive and full of source data. Hayes emphasizes that historians will likely call February 26, 2022 the end of the “Petro Dollar” and “Euro Dollar” controlled monetary system.

Furthermore, Hayes believes that a financial crisis will occur and will spread throughout all aspects of the financial system across the world. “I am 100% certain that there will be a financial crisis of epic proportions, based on losses faced by commodity producers and traders that touch every aspect of the globalized financial system,” explains the Bitmex co-founder’s blog. Hayes added:

You cannot remove the world’s largest energy producer – and the security these commodity resources represent – ​​from the financial system without serious unintended and unintended consequences.

Vulnerabilities linked to centralized and authorized digital networks

The blog post written by the Bitmex co-founder details how the US and the dollar have become a dominant force in the world of finance. At one time, the United States was dominant in industrial and manufacturing businesses, but Hayes says today that “the United States exports finance, not goods, to the world on a macro scale.”

Hayes also talked about fiat currencies and how humans have created ways to send “value electronically through centralized and authorized digital networks.” Although the SWIFT payments network is operated by several countries, Hayes insists that SWIFT is “effectively controlled by the US and the EU”.

Hayes explains that vulnerabilities exist when a ruling nation “decides to block access to the network to any participant.” He says the point begs the question, “Should you ‘save’ on assets that circulate in this centralized and authorized digital currency network?” The blog post highlights that there is a level of trust, given that a nation-state will not “expropriate its ‘savings’”. The Bitmex founder’s blog post adds:

Remember this, you don’t own anything, you just ‘rent’ your net worth as an individual or sovereign of the entity that operates the centralized and authorized fiat digital currency network.

Hayes believes that if gold exceeds $10K, Bitcoin will reach a million

Later in the blog post, Hayes says he believes gold will “phase” much higher than its price today. He believes competition and demand “will push the last marginal price well above $10,000, and we can see stupendous prices for gold that seem unfathomable.”

Gold jumping to $10,000 an ounce or more will “psychologically shock” the world’s asset markets, Hayes notes. Hayes sincerely believes that most of the hard assets that people use to hedge will skyrocket in value and that includes bitcoin (BTC).

“As gold surges above $10,000, bitcoin moves up to $1,000,000. The bear market in fiat currencies will trigger the biggest transfer of wealth the world has ever seen,” explains Hayes. He adds that he believes both gold and bitcoin are forms of cash assets. “Both are hard money, one is analog (gold) and one is digital (bitcoin),” writes Hayes.

At the end of the Bitmex executive’s blog post, he outlines the pros and cons linked to storing wealth in gold and how tricky it can be to store. “Most readers don’t have a safe in a freeport to store their pet yellow stones — instead, you’d like a more transportable stash of wealth,” says Hayes.

Hayes ends his blog post by repeating that “you cannot cancel the biggest energy producer from a monetary system without major repercussions”. He deduces that, after the fog of war clears, the economy “will present a situation where hard money instruments will rule all global trade.”

Marks in this story

Anton Siluanov, Arthur Hayes, Bitcoin, Bitcoin (BTC), bitcoin $1 million, BitMex, Bitmex Co-founder, China, economy, Economy, EU, Euro Dollar, Frozen Gold, gold, Gold $10K, Hayes, IMF, Monetary System , Pepe Escobar, Petro Dollar, Petro Dollar Wars, Russia, Russia, Ukrainian War, Russian Federation, Minister of Finance, Sanctions, Swift, USA, West

What do you think of the recent blog post published by Bitmex founder Arthur Hayes? Let us know what you think about this matter in the comments section below.

Jamie Redman

Jamie Redman is the news lead for Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.




image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for information purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author are responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leave a Comment