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BitMEX founder Arthur Hayes believes Bitcoin could see major gains as the US and China move further apart economically. Speaking on the Forward Guidance YouTube channel Hayes explained that governments around the world will likely need to print more money to soften the impact of the trade war. This money printing historically has triggered massive Bitcoin rallies.
Hayes pointed out that if the US tries to close its current account deficit foreign investors will have to sell US stocks. This could damage the stock market and force the US government to print even more money to stay afloat. Bitcoin stands to benefit from this situation as trust in traditional assets weakens and demand for alternative stores of value grows.
While Hayes does not think central banks will start buying Bitcoin yet he believes individuals and investors will see Bitcoin as a smart hedge. Central banks will still stick to gold for now as they remain more comfortable with it.
