• Arthur Hayes, co-founder of BitMEX, believes that Bitcoin will be worth $1 million in the next two-three years.
• He attributes this to the U.S. Federal Reserve’s new Bank Term Funding Program (BTFP) which is an emergency credit initiative by the Federal Reserve to extend loans to banking and other eligible depository institutions.
• According to Hayes, the BTFP endangers the traditional finance system and everything associated with it, however outside money like gold, real estate and Bitcoin [BTC] will remain unaffected if the Federal Reserve’s money printer takes down the financial system with it.
Arthur Hayes‘ Prediction on Bitcoin Worth
Arthur Hayes, co-founder and former chief executive of crypto exchange BitMEX recently appeared on a Bankless podcast hosted by David Hoffman where he shared his take on recent developments in US banking system and how it would affect inflation and broader economy. According to him Bitcoin could be worth $1 million in 2-3 years due to US Federal Reserve’s new Bank Term Funding Program (BTFP).
What is BTFP?
BTFP is an emergency credit initiative by the US Federal Reserve that extends loans to banking and other eligible depository institutions by accepting U.S Treasuries, mortgage-backed securities along with other collateral sources as security for these loans. Major banks such as JPMorgan Chase, Wells Fargo and Bank of America have already received more than $210 billion in bailouts through this program.
How Will This Affect Inflation?
Hayes believes that this kind of infinite supply of fiat currency is bound to result in significant appreciation for Bitcoin’s price. He further states that traditional finance systems including stocks, bonds, fiat currencies etc are likely endangered due to BTFP while safe havens like gold, real estate and bitcoin would be unaffected even if there is financial collapse due to money printing by Federal Reserve.
Balaji Srinivasan’s Bold Bitcoin Bet
Former Coinbase CTO Balaji Srinivasan made headlines earlier this week after making a bold prediction about bitcoin valuation stating it can reach up to one million dollars within 90 days but according to Arthur Hayes such a valuation may take longer depending upon current cycle which may last for two or three years.
To conclude Arthur Hayes believes that due US Federal Reserves new lending facility BTC can reach up too one million dollars within next two – three years depending upon current cycle while Balaji Srinivasan predicted it might happen faster within 90 days but only time will tell who was right or wrong.