Arthur Hayes advises against sticking with the traditional banking system
Arthur Hayes, the founder of the cryptocurrency exchange BitMEX, believes that people need to understand the shortcomings of the traditional banking system in order to fully appreciate the value of cryptocurrency. He sees crypto as an important asset for consumers to own as a hedge against risk from the traditional banking system. Hayes asserts that excessive debt has become a widespread problem, and that it’s no longer useful to the extent that it was before. This, he claims, puts everyone at risk of losing money, unless they invest in some form of hard asset such as crypto or gold.
Hayes is known as the original “crypto bad boy”, having founded BitMEX in 2014 and profited greatly from his early involvement in the industry. However, in 2021 he was charged with violating the U.S. Bank Secrecy Act, for which he pleaded guilty and served probation and home detention before relocating to Singapore.
Despite his legal troubles, Hayes has continued writing long-form essays about cryptocurrency and blockchain adoption. He sees it as his responsibility to educate people about how crypto works and why it’s a valuable alternative to traditional financial institutions.
Hayes believes that recent banking collapses have increased interest in alternative assets like Bitcoin, as people fear that they might not have full access to their assets. He claims that politicians and regulators have tried to keep the traditional banking system afloat by piling on more debt, which is unsustainable in the long run.
As financial institutions have suffered large losses this year, cryptocurrencies have seen increased volume and inflows. Hayes believes that in order for crypto to become another financial system, people need to understand what it’s replacing or improving upon. Unfortunately, many people lack education about how money works, how the banking system functions, and how asset markets really operate.
Clever Robot News Desk 26th April 2023