The crypto space will continue to explode in popularity and success, regardless of the Fed’s money printer, according to the latest reports. Check out the juicy news below.
The crypto space will keep on flourishing
As per a recent newsletter by Arthur Hayes, a veteran in the cryptocurrency industry and the controversial founder of BitMEX, Bitcoin’s price has the potential to increase regardless of the US Federal Reserve’s decision to continue raising rates.
Hayes believes that over time it will become increasingly clear that investing in bonds is not a wise decision, and that “capital at the margin” will move towards more secure financial assets such as Bitcoin, big tech and AI stocks, as well as productive farmland.
Financial analysts may still be perplexed by the rise of these assets, including Bitcoin, as they tend to focus on manipulated markets controlled by Fed asset purchases and yields on TIPS, which may seem positive and on the rise.
Investors may still find BTC attractive as the US government’s “spending bonanza” persists, which decreases the yield on government bonds, according to Hayes.
This provides some reassurance because even if the Fed does not cut rates near zero and restart quantitative easing as expected, Hayes is confident that crypto can still achieve significant gains.
Despite a controversial career, including pleading guilty to violating the Bank Secrecy Act, former BitMEX CEO Hayes was sentenced to six months of home detention and two years of probation, along with a $10 million fine.
In other recent news, Coinbase CEO Brian Armstrong has announced that the exchange will be supporting Lightning Network, a layer-2 scaling solution for Bitcoin that aims to address scalability issues.
Armstrong recognizes the importance of Bitcoin in the digital asset space and is actively working to integrate Lightning to enable faster and cheaper Bitcoin transactions.
