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

On April 5th, Arthur Hayes, a co-founder of BitMEX, stated in a post that "The era of U.S. Treasury bonds (and to a lesser extent U.S. equities) serving as the global reserve asset is coming to an end. Since Nixon severed the link between the dollar and gold in 1971, the U.S. national debt has increased by 85 times. The U.S. has had to create credit at a rate matching global economic growth. This is beneficial for some Americans and detrimental for others. The election of Trump was driven by those who felt they did not share in the prosperity of the past 50 years." Once the U.S. current account deficit is eliminated, foreigners will no longer have dollars to purchase U.S. bonds and stocks. If countries begin to embrace "nationalist" policies to boost their own economies, they will sell their U.S. bonds and stocks to obtain domestic liquidity. Although Trump later softened his stance on tariffs, there is no Treasury Secretary or head of state who dares to bet that he will not change his stance again. Therefore, the world cannot return to the past. Each country must fight for its own interests. 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 proposed this because gold is free from tariffs! 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 and are immersed in a fantasy that everything will eventually return to "normal." This is extremely absurd. Those who want to adapt to a global trade order prior to 1971 should buy gold, gold mining companies, and Bitcoin (BTC).