The billionaire argues that Bitcoin is a better alternative compared to gold due to its digital characteristics.
Flag of China and the USA with Bitcoin on fire
Arthur Hayes, founder of BitMex, published another long text on his blog analyzing the macroeconomic situation. As a highlight, the billionaire talks about a divorce between China and the US, indicating that Bitcoin could benefit from this trade war.
Another asset mentioned by the billionaire was gold. However, he emphasizes that Bitcoin has significant advantages over the metal.
At the beginning of the year, Hayes predicted that Bitcoin would go through a strong decline. After accurately predicting this, the executive changed sides, now betting on a strong rise for the second half.
China cannot stop Bitcoin, says Arthur Hayes
After a long analysis of the trade war and the stance of central banks, Arthur Hayes dedicated the conclusion of his article to Bitcoin. In his view, BTC could reach $1 million in this cycle, that is, between 2025 and 2028.
"As the divorce between China and America (Chi-Merica) slowly progresses, it will lead to the balkanization of global financial markets. In the past, gold served as the only liquid link between different financial systems, but now Mr. Satoshi has given the faithful BITCOIN!"
Although China has banned Bitcoin, the executive notes that "as long as there is internet, you will be able to exchange fiat currency for Bitcoin."
Hayes explains that peer-to-peer (P2P) trading cannot be monitored or blocked by the government. Furthermore, he points out that the over-the-counter (OTC) market remains extremely liquid in the Asian country.
"Even China has not banned private ownership of Bitcoin because it knows that this is counterproductive and impossible," Hayes explained. According to a ruling by the Chinese Supreme Court, Bitcoin is a commodity, just like gold, oil, and corn.
The situation is even easier in the US, obviously, making it hard to believe in a new change that would pressure the industry.
"Knowing that the total of foreign portfolio assets is $33 trillion, the question of how much of this capital will leave the United States and migrate to Bitcoin becomes a mental exercise," wrote Hayes.
"And what if 10% of those assets ($3.3 trillion) migrated to Bitcoin in the coming years?"
In his view, Bitcoin will reach $1 million. Although investors may dump their coins as the price rises, the billionaire points out that "there would be an epic short squeeze" as this money migrates to Bitcoin.
Gold or Bitcoin?
Arthur Hayes also mentions gold in his text, being another asset seen as a protection against inflation and geopolitical events. However, the billionaire emphasizes that cryptocurrency has its advantages over the metal.
"The reason Bitcoin is a superior vehicle for moving capital through the global financial Balkans is because it is a digital bearer asset."
Explaining, Hayes points out that it is possible to transfer gold internationally, but only through certificates of ownership. In other words, the metal is not in the owner's possession and can be easily confiscated.
"Therefore, unless you are a state or a quasi-state agent, gold cannot move quickly enough, as a physical bearer asset, to be useful in a global digital economy," Hayes concluded.
"Bitcoin is the only and perfect lifeboat for global capital that needs to leave the United States and other places."
Since the beginning of the year, gold has been up 21%. Meanwhile, Bitcoin has risen 11% during the same period, currently priced at $103,800 at the time of this writing.