Bitcoin News Today: Hayes Bets Ethereum Will Win the War Against Fiat Debasement

Arthur Hayes, co-founder of BitMEX and a prominent figure in the cryptocurrency and derivatives markets, has recently made a significant accumulation of Ethereum tokens, reportedly purchasing $14 million worth of the asset. This move aligns with his broader thesis on the future of money and the role of cryptocurrencies, particularly Bitcoin and Ethereum, in a world where traditional fiat currencies continue to face structural devaluation. In a recent interview hosted by CoinFund’s Chris Perkins, Hayes elaborated on his macroeconomic views, emphasizing the ongoing expansion of money supply by central banks and its implications for digital assets.

Hayes expressed a bullish outlook on Bitcoin, labeling it the best-performing asset in human history since its launch in 2009. He argued that the relentless money printing by governments, particularly in the U.S., is likely to drive further appreciation in Bitcoin and other crypto assets. This perspective is rooted in his belief that fiat currencies are inherently prone to debasement over time, making inflation-resistant assets like Bitcoin increasingly attractive. He dismissed concerns that entering the market in 2025 marks a late entry, asserting instead that the trajectory of Bitcoin’s growth remains intact and has a long way to go.

In addition to Bitcoin, Hayes emphasized the growing significance of stablecoins and decentralized finance (DeFi) in reshaping global monetary systems. He suggested that stablecoins could serve as a critical tool for U.S. economic influence, enabling broader financial inclusion and dollarization of global markets. By leveraging the scalability and accessibility of digital assets, stablecoins could facilitate cross-border transactions and financial services for populations that have historically been excluded from traditional banking systems. Hayes pointed to potential legislative actions, such as the Genius Act, as catalysts for this expansion, which could see trillions of dollars flow into dollar-backed stablecoins in the coming years.

The DeFi sector, according to Hayes, is poised for explosive growth, particularly if stablecoin adoption accelerates. He highlighted Ethereum-based projects such as Ether.Finance and HyperLiquid as key players in this ecosystem. Ether.Finance, for instance, is positioned to facilitate offline spending of stablecoins through its cash card solution, bridging the gap between digital assets and everyday consumer use. HyperLiquid, meanwhile, is seen as a transformative force in decentralized trading, offering a high-performance, permissionless order book that could decentralize the trading of new crypto assets and reduce reliance on centralized exchanges. Hayes noted that HyperLiquid's business model, which sees 95% of its profits used for token buybacks, could drive significant value accrual for token holders.

Hayes also underscored the importance of token economics and governance in the DeFi space, advocating for projects that reward token holders through yield generation and buybacks. He warned that projects failing to align profit with token holders are likely to face market rejection, emphasizing the need for sustainable, user-centric models. In this context, digital asset corporations (DACs) are emerging as a new class of financial entities, leveraging the passive index flows of traditional financial systems to gain exposure to crypto assets. These DACs, Hayes explained, are designed to meet the inclusion criteria of major indices, thereby attracting institutional capital that prioritizes index alignment over active management.

Looking ahead, Hayes remains cautiously optimistic about the development of U.S. derivatives markets, though he questions whether they can compete with the global liquidity and efficiency of offshore exchanges. He noted that regulatory uncertainty and structural inefficiencies, such as the inability to support socialized loss models, pose significant challenges for U.S.-based derivatives platforms. While he acknowledged the potential for innovation, particularly with platforms like Coinbase introducing novel derivative products, Hayes stressed that the core of the market’s growth is likely to occur outside the U.S., where regulatory environments are more accommodating to the 24/7, highly leveraged nature of crypto trading.

Hayes’ strategic accumulation of Ethereum tokens, coupled with his macroeconomic insights and project endorsements, reflects a long-term bullish stance on the crypto markets. As governments continue to expand money supply and traditional financial systems face increasing pressure, Hayes’ vision of a digital-first financial landscape appears increasingly plausible, with DeFi and stablecoins serving as the backbone of a new, more inclusive monetary order.

Source:

[1] Arthur Hayes: Bitcoin Will Soar as Money Printing Won’t Stop! (https://wealthion.com/arthur-hayes-bitcoin-will-soar-as-money-printing-wont-stop/)