Arthur Hayes, co-founder and former head of the cryptocurrency platform BitMEX
$67.25K
, has argued that upcoming challenges for Europe’s financial system may push Bitcoin to higher levels.
In a blog post titled Bastille Day published on October 1, Hayes highlighted France’s position in the Eurozone. Although it is the second-largest economy in the region, it also carries some of the highest levels of debt.
He noted that, to prevent a breakdown of the euro, the European Central Bank (ECB) will have no choice but to issue more currency.
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Hayes suggested that if people in France begin to move their savings, the ECB will be forced to expand the money supply further, and this could strengthen Bitcoin. He wrote, “The ECB will valiantly print money to forestall the loss of its raison d’être”.
He went on to say:
It shall be a glorious day for the faithful as printed euros will combine with printed dollars, yuan, yen, etc, to bid up the price of Bitcoin.
According to Hayes, the central bank can either start financing French social programs now or later, when tighter rules on capital flows could place more pressure on the euro. In both cases, he expects massive currency creation.
He concluded, “Bitcoin doesn’t care and will continue its inexorable rise versus the piece of trash that is the euro”.
Hayes recently shared his thoughts on how Bitcoin investors should approach the market. What did he say? Read the full story.
