- BitMEX co-founder Arthur Hayes comments on Bitcoin’s potential growth
- He sees the $1M target as possible, considering the flaws in the fiat system
BitMEX co-founder Arthur Hayes has a rather optimistic outlook on the price Bitcoin could reach, though he does not specify exact timeframes.
In his view, the current economic and political landscape could drive increasing demand for Bitcoin as a primary deflationary tool, and its limited supply could push the price up to $1M.
More on Factors Driving Bitcoin Upward
Overall, Arthur Hayes points to similar factors driving Bitcoin’s growth that extend beyond presidential elections, while also acknowledging their stimulus effect.
The Trump administration will likely engage in quantitative easing (QE), reducing interest rates and encouraging lending and spending.
He also drew a parallel here, noting that China is taking similar actions.
“American Capitalism with Chinese Characteristics.”
However, more importantly, he highlighted fundamental issues, namely inevitable inflation and the search for deflationary tools, with Bitcoin, given its 21M BTC supply cap, as one of the key options.
“As the freely traded supply of bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western Europeans. Get long, and stay long.”
According to him, Bitcoin will see growing demand in this role from an expanding number of buyers, including entire nations, as its supply continues to shrink.
“This is how Bitcoin goes to $1 million.”
Conclusion
From a purely mathematical and economic standpoint, there’s certainly sense in his words, and we are increasingly seeing this trajectory unfold, as we’ve witnessed the first crypto elections with potentially global impact.
On the other hand, there are numerous additional factors at play, which he also discusses in his essay, making the picture far more complex in reality.
