Arthur Hayes, a founding member and former CEO of the BitMEX crypto exchange
$88.85K
, believes that impending economic problems in Europe could potentially boost Bitcoin’s value.
In his recent analysis, a blog post entitled Bastille Day, released on October 1st, Hayes focused on France’s economic situation within the Eurozone. While France is the second-largest economy in the area, it also has some of the largest debts.
Hayes suggests that, to avert a collapse of the euro, the European Central Bank (ECB) might be forced to create more money.
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Hayes posited that if French citizens start moving their assets, the ECB will be compelled to increase the money supply even further, which in turn could benefit Bitcoin. He stated, “The ECB will bravely print currency to prevent losing its purpose”.
He further elaborated:
It will be a great day for believers as printed euros, dollars, yuan, yen, etc, join forces to increase the value of Bitcoin.
According to Hayes, the central bank is faced with a choice: finance French social programs now or later, when stricter capital control measures could apply more stress to the euro. Either way, he foresees significant currency creation.
His conclusion: “Bitcoin is indifferent and will continue to climb in value against the euro, a currency of questionable worth”.
Hayes recently offered his perspective on the best strategy for Bitcoin investors. Want the details? Find out more here.