•BitMEX founder Arthur Hayes criticized Federal Reserve Chair Jerome Powell’s stance on inflation and said that the same approach won’t work as debt is four times larger than it was 40 years ago.
•He believes Bitcoin’s value proposition lies in its ability to counteract a fiat system which is flawed, corrupt, and parasitic in nature.
•Hayes pointed out that the Fed plans to tighten monetary policy by raising interest rates and reducing its balance sheet, thus providing more stimulus to asset holders.
BitMEX Founder Criticizes Fed’s Stance on Inflation
BitMEX founder Arthur Hayes has been critical of US Federal Reserve chief Jerome Powell’s stance on inflation, pointing out that the same approach won’t work as debt is four times larger than it was 40 years ago. He believes Bitcoin’s value proposition lies in its ability to counteract a fiat system which is flawed, corrupt, and parasitic in nature.
Fed Plans To Tighten Monetary Policy By Raising Interest Rates
Hayes pointed out that the Fed plans to tighten monetary policy by raising interest rates and reducing its balance sheet, thus providing more stimulus to asset holders. This strategy has been strongly contended by BitMEX founder Arthur Hayes while pointing out the difference in economic and monetary conditions in the US today from what they were in 1980. The exec believes that quantity of money is more important than price when it comes to controlling inflation.
Bitcoin Can Counteract ‚Flawed‘ Fiat System
According to Hayes, Bitcoin’s value proposition grows stronger as the banking system falters due to its ability counteract a fiat system which he describes as “flawed, corrupt, and parasitic” in nature. He also argued that central banks are doomed to fail if they continue running this playbook given how different current conditions are from 1980 when this strategy was first implemented successfully.
More Stimulus For Rich Asset Holders
The BitMEX CEO opined that with tighter monetary policies such as higher interest rates or reduced balance sheets implemented by central banks will result only in more stimulus for rich asset holders while completely disregarding those who need economic aid most during these trying times.
Conclusion
Despite various regulations imposed on cryptocurrencies over recent years which have impeded their mass adoption rate among retail investors worldwide; crypto assets still pose an attractive option for investors looking for alternatives beyond fiat currency given their digital scarcity and decentralized nature compared traditional banking systems .