Bitcoin remains between $60,000 and $70,000, but investors are still optimistic about its future.
Former BitMEX CEO, Arthur Hayes argues that Bitcoin's limited supply makes it superior to fiat currencies, which are prone to inflation.
Hayes believes Bitcoin's historical growth suggests that the path to $1 million is achievable.
Hayes suggests US government's hastiness to avoid recession could weaken the dollar and benefit Bitcoin.
Hayes also urges investors to seize the current bull market and HODL Bitcoin for long-term gains.
The Bitcoin halving has come and gone, and yet the crypto market has still not exploded to the upside as investors had hoped.
In fact, Bitcoin, in particular, continues to consolidate between the $60,000 and $70,000 zone, leading to investor frustration.
However, despite Bitcoin's current reluctance to break above or below, the sentiment around the flagship cryptocurrency remains as strong as ever.
Very recently, Arthur Hayes, former CEO of BitMEX wrote a blog post.
In this blog post he titled “Left Curve”, Hayes shared his perspective on where Bitcoin might be headed, the impact of major US macroeconomic factors during May, and why crypto investors may now have a golden opportunity to jump in.
Let’s go over the details of this blog post.
Hayes has never minced words when it comes to stating his opinions.
He has criticized and praised everything from Ethereum to Solana to several memecoins in the space. And this time around, Hayes called Bitcoin the “hardest money ever created.” in his blog post.
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We should break things down from here.
To understand what Hayes means by “hardest money ever created”, we must first go over the issue of inflation.
Bitcoin is different from fiat currencies, which governments can print however and whenever they like.
“Bitcoin is the hardest money ever created. […]. Fiat will continue to be printed ad infinitum until the system resets.”
Moreover, only 21 million BTC will ever exist, making Bitcoin completely resistant to inflation.
Hayes declared that fiat will continue to be printed indefinitely, until the system resets, making Bitcoin “harder” than even the US Dollar.
According to Hayes, the ongoing journey from Bitcoin’s zero value when it was created in 2009 to its current value between $60,000 and $70,000 has been nothing short of remarkable.
Hayes encouraged readers to take a while to think about things.
If an asset can go from $0 to $70,000 in 15 years, then $70,000 to $1 million may not be so difficult.
Let’s explore further.
Hayes pointed towards the 2024 US elections and the possible effects they might have on the strength of the dollar.
Hayes says that the current US government has to dance to the voters' tunes because if voters think that a recession is coming, their chances of being re-elected might drop significantly.
This means that the current government might lean more towards printing more money, in a bid to stem the short-term effects of a recession and remain popular.
The money printing might be able to stop the short-term effects of a recession. However, the long-term effects include inflation, and as worldwide governments do this, the value of traditional currencies erodes and Bitcoin, with its inflation resistance, becomes more attractive to investors.
Moreover, Hayes also argues that the bull market will continue and that any investors who recognize this massive opportunity, have a golden opportunity.
“Bull markets don’t come often; […].
Too many of us try to exist in the centre of the bell curve and reason with the bull market. The true crypto legends and degens Left Curve it.
They just buy, hodl, and buy some more as long as the bull market is pumping.”
Overall, as the sovereign debt bubble swells and eventually bursts, Bitcoin’s role will become even more critical, with the path from $70,000 to $1 million basically set in stone already.
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