Arthur Hayes Proposes Gold Devaluation and Bitcoin Reserve for Economic Growth
Arthur Hayes, CEO of BitMEX, proposes that the United States devalue gold and establish a Bitcoin reserve to enhance economic growth. His article suggests this strategy could enable the Treasury to generate dollar credits for purchasing Bitcoin (BTC), thereby reinforcing the U.S. economy and its global financial leadership.
Hayes argues that devaluing gold would significantly increase funds in the Treasury General Account (TGA) without requiring international negotiations to weaken other currencies. Currently, gold is valued at $42.22 per ounce by the Treasury. Hayes suggests raising its value to $10,000 or $20,000 per ounce, which would immediately boost the TGA balance and provide resources for economic stimulation.
He cites the first 100 days of Trump’s administration as a critical timeframe for implementing impactful policies, including gold devaluation. Hayes predicts this could occur early in 2025, enhancing U.S. competitiveness and supporting domestic production, thereby allowing Trump to achieve rapid economic progress and bolster Republican control of Congress.
According to Hayes, creating a Bitcoin reserve would further secure U.S. financial dominance. He notes that Bitcoin's fixed supply positions it as "hard money," which could strengthen the national currency if held in substantial reserves. He anticipates that if the U.S. government uses funds from gold devaluation to purchase Bitcoin, its price would increase, prompting other nations to pursue similar cryptocurrency reserves.
Time is crucial, according to Hayes. The new administration must act swiftly to deliver results before the mid-term elections in 2026. Delays or unmet expectations could result in market disappointment and a sell-off in cryptocurrencies and related investments.
Other countries, including Russia, Japan, and Canada, are exploring or adopting similar Bitcoin reserve strategies. Hayes emphasizes the growing trend of cryptocurrency reserves globally, which the U.S. cannot afford to overlook. He also points out that Bitcoin ETFs now manage more assets than gold ETFs, indicating a shift in market focus.
While acknowledging implementation challenges, Hayes maintains that devaluing gold is the most efficient method to generate funds and stimulate the economy. He concludes that taking significant action early is vital for Trump to leave a lasting impact during his term.