The founder of BitMEX and cryptocurrency investor, Arthur Hayes, asserts that both gold and Bitcoin (BTC) are now taking over the roles of US Treasuries and stocks as the leading global reserve assets.
In a recent post on the social media platform X, Hayes mentions that President Trump was partly elected by voters who feel excluded from the so-called “prosperity” attributed to abandoning the gold standard in 1971.
He indicates that if the White House commits to lowering its debt and current account deficit, other nations will have no choice but to fund their economies by selling off their US equities and bonds. This could trigger a lasting transformation in the global financial system, as finance ministers worldwide will be unwilling to gamble on Trump reversing this policy.
“THE END: Of US Treasuries and, to a lesser degree, US stocks as the global reserve asset. If the US current account deficit is eliminated, foreigners will lack dollars to purchase bonds and stocks. As countries prioritize their own economies, they will need to divest from US bonds and stocks to support their nation-first initiatives.”
The crypto investor further believes that gold and Bitcoin will come out on top in this evolving financial landscape.
“THE RETURN:
Of gold as the neutral reserve asset. While the dollar will maintain its status as the reserve currency, countries will use gold reserves for settling international trade. Trump hinted at this because gold is free from tariffs! In the new world monetary arrangement, gold must move freely and affordably.”
Many who have been thriving seem to be in denial, clinging to the illusion that things will somehow revert to ‘normal’…
For those looking to adapt to a revival of pre-1971 trading relations, invest in gold, gold mining stocks, and BTC.”
Hayes also proposes that the economic upheavals caused by Trump may have ultimately severed the correlation between BTC and the Nasdaq.
“BTC hodlers must learn to embrace tariffs; perhaps we’ve finally broken from the Nasdaq correlation and can transition to the most straightforward form of a fiat liquidity alarm.”
As of this writing, BTC is valued at $83,322.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors are encouraged to conduct their own research before committing to high-risk investments in Bitcoin, cryptocurrency, or digital assets. Any transfers and trades are done at your own risk, and you are responsible for any losses incurred. The Daily Hodl does not advocate for the buying or selling of any cryptocurrencies or digital assets, nor does it act as an investment advisor. Please be aware that The Daily Hodl is involved in affiliate marketing.
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