Arthur Hayes: Bitcoin is the superior tool for global capital movement, while gold can only be digitally moved in paper form

BlockBeats News, May 15th, BitMEX Co-founder Arthur Hayes published a new article stating, "Given that we know there is $33 trillion in foreign portfolio assets, the next exercise is mental masturbation, considering how much capital will leave the United States and flow into Bitcoin. What happens if 10% of assets in the next few years ($3.3 trillion) flee to Bitcoin? At the current market price, exchanges hold about $300 billion worth of Bitcoin. If 10 times the capital tries to enter the market, it will cause the price to rise far more than 10 times."

This is because the final price is set marginally. Of course, if the price soars to $1 million, long-term holders will rush to sell their Bitcoin for fiat currency, but as these portfolio assets migrate to Bitcoin, an epic short squeeze will occur.

Bitcoin is the superior tool for global financial capital movement because it is a digital bearer asset. Storing and transferring wealth does not require intermediaries. Gold can only be digitally moved in paper form. This means that you have to trust a financial intermediary to warehouse your physical gold and then trade the digital receipt. These intermediaries are subject to financial regulation designed to isolate capital domestically to support nationally strategic industries with tax-supported industrial policies. Therefore, unless you are a national or quasi-national actor, gold can only move as a physically held asset."