Arthur Hayes: Bitcoin Will Benefit from the Decline of the US Dollar Reserve System and the Global De-Dollarization Trend

BlockBeats News, April 5th, BitMEX Co-founder Arthur Hayes stated in a post that "The era of U.S. Treasury bonds (and to a lesser extent U.S. equities) as the global reserve asset is ending. Since Nixon delinked the dollar from gold in 1971, the U.S. national debt has grown 85-fold. The U.S. has had to create credit at a rate matching global economic growth. This is a positive for some Americans and a negative for others. Trump's election was driven by those who felt they didn't share in the prosperity of the past 50 years."

Once the U.S. current account deficit is eliminated, foreigners won't have dollars to buy U.S. bonds and stocks. If countries start embracing "nationalist" policies to boost their own economies, they will sell their U.S. bonds and stocks for domestic liquidity. Even though Trump later softened his stance on tariffs, there is no Treasury Secretary or head of state who dares to bet he won't flip-flop again. Therefore, the world cannot return to the past. Every country must fight for itself.

Gold will return to the stage as a neutral reserve asset. The dollar will remain the global reserve currency, but countries will settle global trade by holding gold. Trump has suggested this because gold is tariff-free! In the new monetary system, gold must circulate freely and at a low cost.

Today, those who benefited greatly from the old system are mostly in denial, immersed in a fantasy that everything will eventually return to "normal." This is extremely absurd.

Those who want to adapt to a pre-1971 global trade order should buy gold, gold mining companies, and Bitcoin (BTC)."