{"id":323705,"date":"2022-03-20T02:35:26","date_gmt":"2022-03-20T06:35:26","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=323705"},"modified":"2022-03-20T02:35:26","modified_gmt":"2022-03-20T06:35:26","slug":"bitmex-ceo-predicts-dire-economic-effects-after-russia-sanctions","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/bitmex-ceo-predicts-dire-economic-effects-after-russia-sanctions","title":{"rendered":"BitMEX CEO predicts dire economic effects after Russia sanctions"},"content":{"rendered":"

The former CEO of BitMEX, Arthur Hayes, has predicted that the recent sanctions imposed against Russia could lead to dire economic effects. Hayes has predicted that there will be an influx of investments into gold and Bitcoin<\/a> in the next ten years.<\/p>\n

The remarks by Hayes echo a prediction released by Credit Suisse last week. The investment bank stated that the US dollar was losing its place as a world reserve currency, and it would be replaced by commodities such as gold.<\/p>\n

US dollar losing value<\/h2>\n

Hayes released a blog post<\/a> titled “Energy Cancelled”, where he talked about the freezing of $600 billion of foreign reserves belonging to Russia. He noted that this move would deter other governments from storing their foreign reserves using the US dollar, and they would turn towards gold.<\/p>\n

Buy Bitcoin Now<\/span><\/a><\/div>\n

Hayes noted that this would weaken the value of the US dollar, which will add a strain to the US economy that is currently battling the highest level of inflation in 40 years.<\/p>\n

The US Federal Reserve terminated the US Treasury Bind program to curb the rising costs. However, if countries dump the USD for commodities, the Fed would be forced to print money to buy back these bonds, resulting in hyperinflation.<\/p>\n

Hayes advocates for gold and Bitcoin<\/h2>\n

Bitcoin is yet to find its place as a replacement for physical money. Currently, Bitcoin is being used as a speculative asset, with its prices mimicking tech stocks. Hayes notes that governments will move their money towards physical gold in the short term. Unlike Bitcoin, physical gold has a precedent of being used as a medium of exchange.<\/p>\n

Hayes is also confident that once the demand for physical gold kicks in, central banks might use Bitcoin to make cross-border payments, as it is convenient to use compared to physical gold. He further predicted that once the US dollar collapses, gold will move to $10,000, while Bitcoin will move to $1,000,000.<\/p>\n

“Again, I am fully confident that on a personal level, if you believe you should spend fiat and save gold, the metal leap towards spending fiat and saving Bitcoin is miniscule,” he added.<\/p>\n

<\/p>

Buy Bitcoin Now<\/span><\/a><\/div>\n

Your capital is at risk.<\/em><\/p>\n

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