Former head of the BitMEX cryptocurrency exchange, Arthur Hayes, has published his new essay titled Fatty Fatty Boom Boom Boom, in which he analyzes how Donald Trump’s economic strategy could fundamentally change the rules of the game in global markets and impact the crypto industry. Hayes believes that Trump’s team is ready to abandon the policy of dollar dominance in the world and shift to a model of controlled capital outflow.
This is reported by Finway
The Importance of a New Approach
According to the author, such an approach will require massive issuance from the U.S. Federal Reserve (Fed), leading to a weakening of the dollar and an increase in alternative assets, particularly Bitcoin. Hayes emphasizes that in the new economic paradigm, Bitcoin could become a “lifeboat” for investors—a digital asset that is not subject to national control. He does not rule out the possibility of Bitcoin rising to $1 million by 2028.
Economic Parallels and Challenges
In his essay, Hayes draws parallels between the issues of obesity in the U.S. and the imbalances in the country’s economy, noting that, much like in the medical field, there are two approaches to solving economic problems: the hard and the easy. He believes that politicians often choose “soft” solutions that may initially seem beneficial but lead to serious consequences.
“It doesn’t matter whether you consider excess weight aesthetic; the problem is that metabolic disorders—though they may seem ‘beautiful’—are in reality deadly,” Hayes points out.
According to Hayes, controlling capital movement could be a simpler and more effective way to address the U.S. trade deficit than tariffs, which struggle under current conditions. In the essay, he also discusses the potential consequences of implementing taxes on foreign capital, which could serve as an alternative to tariffs.
Despite all the challenges, Hayes believes that the situation in the Bitcoin market could lead to significant changes if foreign capital begins to leave the U.S. due to new restrictions. This could create conditions for a rapid increase in the value of Bitcoin, making it an attractive asset for investors.