Arthur Hayes: A new inflation cycle has arrived, and Bitcoin will be the best safe haven for wealth

BitMEX co-founder Arthur Hayes published his latest article "Zoom Out" and said that "we have entered a new inflation cycle". This cycle is characterized by countries prioritizing their own interests and high inflation. Governments will once again suppress their own savers through finance to finance wars. There are two types of periods in history: local periods and global periods. Arthur Hayes said: "In a period of local inflation, I should hold gold and avoid stocks and bonds. In a period of global deflation, I should hold stocks and avoid gold and bonds. In the current cycle, we must pay close attention to the size of the fiscal deficit and the total amount of credit provided by banks to non-financial institutions, rather than focusing on changes in the central bank's balance sheet in the past." Faced with the huge fiscal deficit and loose monetary environment shown in the data, Hayes is confident about the prospects of Bitcoin. He asserted that as long as capital can still flow freely, switching from fiat currency to cryptocurrencies such as Bitcoin will be the best way to preserve wealth. Hayes predicts that the current situation is highly similar to the 1930s-1970s, so he advises investors to prepare for a rainy day and switch funds from fiat currency to cryptocurrencies.