In a recent X post, Arthur Hayes, former CEO of BitMex, emphasized the critical importance of Bitcoin (BTC) as the global financial landscape faces increasing challenges. Hayes, known for his insightful perspectives on digital currencies, noted that real interest rates in the United States are, in fact, negative.
He calculated this by subtracting the 3Q23 nominal GDP growth rate of 6.3% from the one-year Treasury bond yield of 5.4%, arriving at a real rate of -1.1%.
Hayes urged people to carefully consider their financial options and advised against allowing the government to profit at their expense. Instead, he recommended investing in tech stocks, gold and BTC to safeguard and improve your purchasing power.
This is not the first time Hayes has shared his views on Bitcoin’s critical role in the current economic climate. It should be noted that he previously wrote about the topic in his essays, although with an error in the formula he used. Correctly, the real rate is calculated by subtracting inflation from the nominal rate, rather than GDP.
However, for Hayes, the main driver of the call to invest in Bitcoin lies in the current problem of inflation. He previously highlighted how fiat currencies around the world are losing their purchasing power due to the extensive stimulus and quantitative easing packages implemented by central banks in response to pandemic-induced financial policies.
As global economic uncertainties increase, Hayes’ warning rings loud and clear: it’s time to bet on Bitcoin in the face of the impending financial crisis.
