Bitcoin is poised for a fantastic future! According to Arthur Hayes, former CEO of BitMEX, the price of the first cryptocurrency could skyrocket to an astonishing $1 million under Donald Trump’s presidency.
In his latest essay, Hayes pointed out that reducing the US national debt-to-GDP ratio to 70% would require the country to borrow an additional $10.5 trillion. This massive credit expansion could have a profound impact on asset prices, particularly Bitcoin.
Hayes further explained that Trump would employ a model of "American capitalism with Chinese characteristics," aimed at boosting nominal GDP through government tax breaks and subsidies to relocate critical industries.
According to Hayes, the United States could see a large increase in money supply in the near future. This would happen if the government injects trillions of dollars into the economy through various credit programs or loans. Typically, such injections drive inflation and make fiat currencies less valuable. As a result, investors will have to look for alternative assets, with Bitcoin likely catching their attention.
With every new dollar pumped into the US economy, Hayes believes that Bitcoin will become more appealing to market participants. In this scenario, the digital currency has every chance of reaching $1 million, the businessman concluded.