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

BlockBeats reports that on July 2, BitMEX co-founder Arthur Hayes released his latest article "Zoom Out", stating, "We have entered a new inflation mega-cycle. The characteristic of this cycle is that each country prioritizes its own interests and inflation soars. Governments around the world will once again financially suppress their domestic depositors to finance wars.

Historically, there are two types of periods: local periods and global periods. During local inflationary times, I should hold gold and avoid stocks and bonds. During global deflationary times, I should hold stocks and avoid gold and bonds.

In the current cycle, we must closely monitor the scale of fiscal deficits as well as the total amount of credit provided by banks to non-financial institutions rather than primarily focusing on changes in central bank balance sheets."

Faced with data showing huge fiscal deficits and loose monetary environment, Hayes is confident about Bitcoin's prospects. He asserts that as long as capital can still flow freely from fiat currencies towards cryptocurrencies like Bitcoin it will be an unrivaled choice for wealth preservation.

Hayes predicts that the current situation highly resembles the period between 1930-1970s; therefore he advises investors to prepare ahead by transferring funds from fiat systems into cryptocurrency. When inflation strikes again, Bitcoin will shine brightly once more.