Arthur Hayes Urges US to Create Strategic Bitcoin Reserve
The post Arthur Hayes Urges US to Create Strategic Bitcoin Reserve appeared on BitcoinEthereumNews.com.
BitMEX CEO Arthur Hayes suggests that Trump’s administration should move from the Gold standard and incline more towards establishing a strategic Bitcoin reserve. Hayes suggests that the best way for the US to achieve economic prosperity is for the Treasury Department to create more dollars by devaluing the price of gold to build a Bitcoin reserve. Hayes Suggests Trump to Shift from the Gold Standard According to Hayes’ latest Substack article, this devaluation would allow the Federal Reserve’s Treasury General Account (TGA) to receive a dollar credit. This credit can later be injected into the economy directly. It eliminates the need for diplomatic efforts to persuade other countries to devalue their currencies against the US dollar. The larger the gold devaluation, the bigger the credit will be. Currently, the treasury values gold at $42,22/oz. From Hayes’ perspective, this is overvalued. He explains that if incoming Treasury Secretary Scott Bessent would consider a $10,000 to $20,000/oz revaluation, then the TGA’s balance would immediately grow. “Quickly and dramatically weakening the dollar is the first step towards Trump and Bessent achieving their economic goals. It is also something they can accomplish overnight without consulting domestic legislators or foreign finance ministry heads. Given that Trump has one year to show progress on some of his goals to help Republicans maintain their hold on the House and Senate, my base case is a $/gold devaluation in the first half of 2025,” Hayes wrote. What Would a Bitcoin Reserve Mean for the US Economy? Arthur Hayes argues that the strategy would inherently increase the price of Bitcoin and other cryptocurrencies if the Treasury decides to use the dollar credits to purchase BTC. Given that the US already owns the largest amount of gold than any other nation-state, it could do the same by creating a Bitcoin…
