Bitcoin's Value Likely to Reach $1 Million by 2028, According to Arthur Hayes, Due to Implementation of Capital Controls
Going Giga with Bitcoin: Arthur Hayes' $1M Prediction
In an audacious call, ex-BitMEX CEO Arthur Hayes is betting big on Bitcoin (BTC) hitting a mind-boggling $1 million by 2028. But why the astronomical leap? He lays the blame on impending American capital controls.
You heard it right! Hayes suggests that the U.S. could impose financial restrictions on foreign investors, leading them to ditch traditional assets for Bitcoin and gold in a mad dash.
Bitcoin: The New Safe Haven Amid Global Economic Shifts
This isn't the first time Hayes has cast a seven-figure spell on Bitcoin. Earlier this month, he predicted Bitcoin would soar to millions due to Treasury buybacks, bond market chaos, and a monetary apocalypse. Cue the dramatic music!
Yet, his latest theory, penned in his Substack opus, introduces a radical twist: a dramatic policy shift. Hayes envisions the Trump administration imposing taxes on foreign holdings of stocks, bonds, and real estate to whittle down trade deficits. And guess what? A seismic capital shift towards Bitcoin could result.
"Capital repatriation and the devaluation of the mammoth stock of US treasuries will be the two catalysts pushing Bitcoin to stratospheric heights between now and 2028."
Tariffs, according to Hayes, are leaving a sour taste with voters due to higher prices and chaotic supply chains, so he reckons policymakers might opt for stealthier solutions like capital controls. A hypothetical 2% tax on foreign-owned U.S. assets could rake in a whopping half-trillion dollars, money he thinks would vanish the income taxes for the vast majority of Americans.
Bitcoin: Better Than Gold In a World Gone Mad
However, Hayes warns of potential upheaval in the $33 trillion foreign-held US debt and equity market. Ever the doomsayer, Hayes emphasizes that as capital floods out, the Federal Reserve would need to revive quantitative easing to keep bonds afloat and asset prices kicking.
"Foreign investors will continue to sell products to the U.S., but they'll face taxes on their earnings. Alternatively, they might decide to reduce exports or invest in assets without borders like Bitcoin or gold." he wrote.
Unlike gold, Bitcoin's digital bearer asset nature allows for frictionless cross-border transactions, a trait that could shine in a world divided by financial barriers. Meanwhile, Bitcoin currently hovers around $102,000, with a 3.2% weekly surge and a nearly 20% monthly growth.
In his Substack opus, former BitMEX CEO Arthur Hayes suggests a radical shift in financial policy, predicting that American capital controls could drive a significant capital shift towards Bitcoin. This potential seismic shift, as Hayes foresees, could push Bitcoin's price to stratospheric heights by 2028, surpassing its current value of around $102,000. Contrasting traditional assets like gold, Bitcoin's digital nature and frictionless cross-border transactions make it a potentially resilient choice amidst financial barriers.
