Despite initial fears that a war could lead to a sell-off in Bitcoin, BitMEX co-founder and CEO Arthur Hayes believes that the cryptocurrency will likely outperform bonds once the war begins. In a recent interview, Hayes explained that he believes that when push comes to shove, Bitcoin will demonstrate a unique ability to thrive regardless of the geopolitical context.
Hayes argued that Bitcoin is not a traditional asset class and is instead “digital gold.” He believes that if a conflict leads to global instability or a flight to safety, investors may invest in Bitcoin as a store of value and hedge in times of war. In the event of a financial crisis, Hayes is confident that Bitcoin will demonstrate strong resilience and remain an attractive asset despite its volatility.
Hayes believes that individuals will ultimately view Bitcoin as a better store of value than traditional assets like stocks, commodities, or bonds during a conflict. He stated, “I think there’s always a place and a fear bid in Bitcoin, even when there’s conflict and violence around the world. People will realise that assets like stocks, bonds, commodities, and fiat currencies are all paper based and therefore all susceptible to geopolitical risk.” He added, “At the end of the day, Bitcoin is the only asset class with a self-custody system and guaranteed scarcity. That makes it very attractive for people who want to hedge against volatility, uncertainty, and government intervention.”
