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Recently, renowned BTC proponent and BitMEX co-founder Arthur Hayes referred to Bitcoin as the “cure” for yield curve control (YCC), the method used by governments to deploy quantitative easing to restrain rising bond yields.
Hayes made his remarks in response to the Bank of England’s (BOE) most recent decision to temporarily acquire long-term UK government bonds, which took effect on September 28.
The 10-year gilt rates spiked on Tuesday to 14-year highs of over 4.5%, up from about 3.5% on Friday, forcing the BOE to intervene. The Financial Times claims that this was brought on by a flood of interest rate derivative liquidations that led pension funds to sell their long-term government debt.
Hayes anticipated that YCC will quickly expand to central banks all around the world, meaning that Bitcoin would become more desirable as a result.
The United Kingdom may be partially deviating from the g xnmxlobal trend toward the hawkish monetary policy as a result of YCC, which increases the volume of money in the economy. Other nations will shortly follow, claims Hayes.
Hayes: Bitcoin is “Lord Satoshi’s cure”
He wrote in a tweet on Wednesday that “a virus starts in one host and moves on quickly to the next.” “All central bankers think and act alike. If it’s happening in the UK, your banana republic is next.” BitMEX co-founder continued by saying that Bitcoin is “Lord Satoshi’s cure” for the issue.
Hayes stated in March that over the course of the next ten years, fiat currencies, particularly the U.S. dollar, will hyperinflate, driving people to turn to gold and bitcoin as safe havens. Due to their scarcity, both commodities have often been compared to one another as investments for hedging against inflation.
In July, he added that if other currencies kept losing ground to the dollar, it could lead Federal Reserve in printing money, which would eventually be a good thing for Bitcoin.
The post Former BitMEX CEO believes Bitcoin is the cure to global YCC appeared first on Blockchain, Crypto and Stock News.
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