Bitcoin Reserve Will Lead To ‘Pain In Under 2 Years’: Arthur Hayes
In his latest news prose Titled “Genie,” crypto entrepreneur and former Bitmex CEO Arthur Hayes condemned the call for the U.S. Bitcoin Strategic Reserve (BSR), warning that such a plan would cause “unnecessary pain in two years” and would The world’s largest cryptocurrency has transformed into a powerful political weapon. Hayes also warned the industry not to pursue what he saw as an overly complex Frankenstein crypto regulation bill, which he believes will benefit primarily from large centralized institutions rather than promoting real decentralization.
Bitcoin’s “terrible idea”?
Hayes questioned the feasibility and long-term consequences of establishing a national Bitcoin store. He believes that the U.S. government will be motivated by politics rather than a reasonable financial strategy, which may lead to manipulation of the Bitcoin market.
He believes that BSR has the potential to become a mechanism for politicians to raise funds for irrelevant agendas: “Let’s assume that Trump can create BSR. As U.S. Senator Lummis suggested, the government bought 1 million bitcoins. Boom! Prices went crazy. Then, the purchase ended and the only trend channel stopped. ”
Related Readings
Hayes envisions subsequent governments (usually hostile to bitcoin or cryptocurrencies) to clear this huge reserve. “if( Democrats) Obtained a veto majority in the House of Representatives? By 2028, what to do if Democrats win the election…find a bunch of simple cash to spend money on their supporters, this is the first directive. There are a million bitcoins sitting there ready to sell…the market will be rightly worried about when and how to sell them. ”
Another key controversy for Hayes is that regulations shaped by special interests may inadvertently stifle the innovation it aims to promote. According to Hayes, large exchanges and financial intermediaries with resources that affect legislators are more likely to drive regulatory outcomes.
This will burden smaller innovators and strengthen the status of major centralized players, he suggested: “The desire for crypto-regulatory may be granted…will be in the form of overly complex prescribed rules, with only large and affluent concentrations Only companies can afford it…that elves really want the wider cryptocurrency community?…maybe those readers who are Coinbase and Coinbase shareholders Black Stone Want a Frankenstein crypto bill. But I believe this regulation does not help change the status quo. ”
Another suggestion
Rather than BSR, Hayes proposed more radical, complex financial arrangements involving the U.S. Treasury Department, Bitcoin and “Century Bonds” (100-year zero equity bonds). His idea is that the United States unilaterally devalues its existing Treasury obligations by announcing that Bitcoin will replace sovereign debt as a neutral global reserve asset.
Related Readings
In his own words, the plan will involve a public statement by U.S. Treasury Secretary Scott Bessent, announcing his intention to use Bitcoin as a reserve asset while keeping the dollar as an invoice currency. After that, the US dollar will experience a gradual depreciation, while the U.S. Treasury is getting higher and higher at the price of Bitcoin, while issuing Century bonds instead of paying cash expenses immediately.
The next step will be to expand the maturity of treasury debts, the Treasury Department sells Bitcoin in a profitable way to buy back and retire shorter maturity, ultimately increasing U.S. debt maturity to 100 years. Additionally, StableCoin transfers on social media platforms such as Facebook and X will accelerate global USD adoption, allowing everyday users to participate in the U.S. bond market, i.e. traditional bank intermediaries.
“This is financial history… Another new goal is to make Bitcoin a global neutral reserve currency.” He believes that this strategy can be transitioned from traditional “petrodollar” or “warehouse” systems to fixed in Bitcoin is a system to restore our hegemony while ensuring that Bitcoin’s large mining operations remain within the U.S. borders.
Hayes focused on the more wary consequences that crypto voters played a significant role in returning to Donald Trump and the Republican login power. However, he highlighted the slow pace of action on cryptocurrency issues, comparing it with the government’s rapid implementation of environmental, social and governance (ESG) mandate.
“When Trump wants to act, he will act…removing ESG and DEI policies…prone to emerge…it’s a shame because in the leeway, crypto single voters will be in power (Republicans).”
So does he Reiterate his predictions The Bitcoin may see a sharp correction to the $70,000 to $75,000 range, and then raise the rally over the long term, if not immediately, specific legislation favors permissionless innovation or further monetary stimulus.
Currently, Hayes urges those who “long line up day after day in SE puff clothes or cap heels and summer gowns to think carefully about the orange elves: “Stacked SATS is my game, I hope your game is mine Games are also. So if you find yourself on the elves’ desk… please hope for the right thing. ”
At press time, BTC was trading at $98,190.
Featured Images created with dall.e, Charts for TradingView.com
