Arthur Hayes, a co-founder of BitMEX, thinks Bitcoin will be worth a lot more in the future – between $750,000 and $1 million by 2026. He shared this on a podcast, explaining that he believes in Bitcoin’s value going up because of economic factors like government involvement, inflation, and the global economy.
Hayes also talks about a possible big financial crisis and how the U.S. government’s actions in economic downturns might cause problems. He thinks this leads to too much money being printed, causing inflation. He says growing government debt and the need for more money printing will eventually lead to uncontrollable inflation. Hayes predicts a big market peak in 2026, followed by a serious economic downturn.
He points out issues with the U.S. banking system, like a lot of debt that needs to be handled and problems with U.S. bonds. According to Hayes, the banking system has issues because of rules encouraging risky financial behaviors, making it hard for the system to handle more debt and making the economic situation worse.
Hayes suggests that these problems with traditional financial systems will push people to invest in alternatives like Bitcoin. He thinks Bitcoin is attractive because it has a fixed supply and can bring high returns for investors looking to diversify.
Despite being worried about the world economy, Hayes is positive about Bitcoin. He expects its price to go between $25,000 and $30,000 soon. He also believes that if a special kind of Bitcoin investment gets approved and there’s a big event in Bitcoin’s technology, its price could reach $70,000 by mid-2024. Looking ahead, he predicts Bitcoin could be worth between $750,000 and $1 million by the end of 2026.
In an essay on October 6, Hayes talked about the future of the crypto market, predicting a strong period between 2023 and 2026. He thinks big central banks will print a lot of money to support their government bond markets in the next 2-3 years. This “toilet paper money” is expected to help develop AI technologies quickly, leading to what Hayes calls a “Double Happiness” effect. He believes this will particularly benefit cryptocurrencies like Filecoin.
Despite facing criticism for being too positive, Hayes is focused on long-term market cycles and is investing in assets he thinks are undervalued. He also warns about the dangers of too much debt and money printing, expressing concerns about unsustainable global debt levels.