Arthur Hayes: Bitcoin will benefit from the retreat of the dollar reserve system and the global trend of de-dollarization
ChainCatcher news, BitMEX co-founder Arthur Hayes stated: "The era of U.S. Treasury bonds (and to a lesser extent, U.S. stocks) as global reserve assets is coming to an end. Since Nixon decoupled the dollar from gold in 1971, the total amount of U.S. Treasury bonds has increased by 85 times. The U.S. has had to create credit currency that matches global economic growth. This is a boon for some Americans and a bane for others. Trump's election was driven by those who felt they had not shared in the 'fruits of prosperity' over the past 50 years.Once the U.S. current account deficit is eliminated, foreigners will not have dollars to purchase U.S. bonds and stocks. If countries begin to shift towards 'national priority' policies to boost their own economies, they will sell off their holdings of U.S. Treasuries and stocks to gain liquidity in their own currencies. Even if Trump later softened his stance on tariffs, no Treasury Secretary or head of state would dare to bet that he wouldn't flip-flop again. Therefore, the world cannot return to the way it was before. Every country must fight for itself.Gold will return as a neutral reserve asset. The dollar will still be the global reserve currency, but countries will settle global trade by holding gold. Trump has hinted at this, as gold is tariff-free! In the new monetary system, gold must circulate freely and at low cost.Today, those who have benefited immensely from the old system are mostly still in denial, immersed in a fantasy: that everything will eventually return to 'normal.' Absurd to the extreme.Those who wish to adapt to a return to the global trade order before 1971 should buy gold, gold mining companies, and Bitcoin (BTC)."