Historical economic trends suggest Bitcoin is fated for another massive leg up this market cycle, according to BitMEX co-founder Arthur Hayes.
However, the start of the current economic era was also marked by Bitcoin’s genesis block in 2009, which introduced a currency that improved on all of gold’s qualities. Not only is the currency limited in supply, but it also “moves at the speed of light” much like digital fiat currencies. “That is why Bitcoin stole some of gold’s thunder from 2009 until the present,” he said.
Hayes cited an update from the Congressional Budget Office last month projecting the budget deficit to reach $1.915 trillion in fiscal year 2024 – the highest level ever besides the Covid-19 era. Meanwhile, the Atlanta Fed projects real U.S. GDP growth to be 2.7% in Q3 2024, quelling any fears of a potential recession in the short term.