By cryptoadmin 
US President Donald Trump simply added Bitcoin to the US Strategic Reserve, however Arthur Hayes isn’t shopping for the hype. He sees it as political posturing and a method to woo crypto voters forward of the 2026 midterms whereas doing the naked minimal to maintain inflation beneath management.
In an unique interview with Cryptopolitan, Arthur Hayes—CIO of Maelstrom, co-founder of BitMEX and one of the crucial outspoken figures within the crypto world—doesn’t mince phrases on the subject of the way forward for BTC and all of the issues which can be weighing it down.
With US-China tensions rising and tariffs making a comeback, might Bitcoin turn into a weapon within the new Chilly Warfare? Let’s dig in additional with Hayes who thinks China may already be forward within the BTC accumulation race.
Bitcoin’s Wall Road takeover?
With Bitcoin ETFs, institutional adoption, and political backing, many are celebrating what looks like the asset’s golden period. Nevertheless, Hayes sees the flip facet, warning that this mainstreaming might strip BTC of its insurgent DNA and switch it into simply one other Wall Road asset.
He believes that “Bitcoin is a bearer asset with a finite provide that can not be altered by authorities or central financial institution diktat. It’s the exact opposite of any TradFi asset which, even whether it is in finite provide like equities, depends on the authorized fiction woven by governments and enforced by males with weapons.”
We requested him if massive banks would kill off stablecoin issuers like Tether or if regulators might shut down all stablecoins, bank-issued or not.
He stood agency on Tether’s survival and highlighted that Tether is simply too massive to kill as a result of a disorderly unwind of their a whole lot of billions of {dollars} value of US Treasury securities would roil the market.
“Tether is usually utilized by non-Individuals, US financial institution will problem a stablecoin in its first occasion to service US individuals. Subsequently, Tether’s dominance won’t be challenged,”
stated Hayes.
Is Trump’s Bitcoin Reserve a wise transfer or a gimmick?
Bitcoin and different prime altcoins bought an official name to be included in a authorities reserve. We requested Arthur whether or not this is step one towards a Bitcoin-backed monetary system or simply political theater.
He identified that “Trump and the Republican get together have a troublesome mid-term election developing in 2026. Trump must preserve crypto buyers on facet in order that they present up with marketing campaign donations and on the poll field.”
He added “However however, Trump can’t have inflation working wild, so wanton cash printing, which might ship Bitcoin rapidly to new all-time highs, can’t be pursued as a result of inflation harms all Individuals. Trump will do the minimal crucial to achieve the assist of crypto buyers.”
President Trump Travels to Texas. Taken on January 12, 2021. Picture by Trump White Home Archived through Flickr.
Hayes believes China’s native governments have been mining Bitcoin for years and should already be forward in accumulating reserves.
He stated that “the roughly 200,000 Bitcoin the US authorities seized or stole from people is what goes into the reserve. It is vitally potential that the Chinese language authorities holds extra Bitcoin than that.”
Bitcoin as a commerce struggle weapon?
With rising US-China tensions and the return of aggressive tariffs, Bitcoin might turn into a strategic software for international locations to bypass monetary sanctions and tariffs. We requested Arthur if we might see governments weaponizing BTC in world commerce.
He thinks Bitcoin is changing into a key software for financial resistance.
“Bitcoin will turn into the one method that balkanized financial blocs will be financially related. Within the close to future, the key financial blocs will start blocking the flexibility for capital to movement freely outdoors of their borders. At that time, Bitcoin, on condition that anybody with an web connection can use it, would be the solely method that residents from totally different blocs can financially work together with one another,” he added.
If world provide chains get disrupted once more attributable to tariffs and financial nationalism, might that push companies and people towards Bitcoin as a borderless asset?
Maelstrom CIO prompt that “the balkanization of commerce and finance is inflationary as each nation should replicate manufacturing. The rise in productive capability can’t be funded out of financial savings alone; due to this fact, fiat cash printing might be used to finance this construct out.”
“Bitcoin advantages as the quantity of worldwide fiat credit score expands. That’s how Bitcoin advantages in a world commerce struggle,” he additional added.
We’ve seen El Salvador going massive on BTC, however they’re small. Which main nation do you suppose would be the first to shift a serious a part of their reserves into Bitcoin?
Regardless of El Salvador’s Bitcoin experiment, Hayes doubts any main financial system will make Bitcoin its major reserve asset. “It doesn’t make any sense for a authorities to ditch the privilege of issuing its personal foreign money by fiat.”
Arthur Hayes and Changpeng Zhao. Picture by Maelstrom through X.
Are meme cash the true central financial institution killers?
Neglect BTC and ETH, meme cash are shifting sooner and creating extra liquidity than some nationwide currencies. In the meantime, we’ve additionally seen extra scams and hacks within the shadow of the meme cash explosion.
Would it not be potential to see a future the place such cash disrupt fiat techniques greater than BTC? We requested Hayes, who ceaselessly locations his bets on social media.
He indicated that “Meme cash will redirect funding flows from investments deemed appropriate by the elites, to no matter is scorching within the metaverse.”
Nevertheless, he thinks that this may frustrate the flexibility of child boomers to dump their monetary belongings on the youth as a result of the youth would relatively purchase a meme coin than a inventory.
Through the latest election season, the market noticed Trump and Biden-themed cash explode in a single day. I requested for Arthur Hayes’s tackle political events formally launching their meme cryptos to boost funds and affect voters.
He sees the true meme coin wars heating up through the 2026 midterm elections. “They’re the proper marketing campaign financing software for younger aspiring politicians going through off in opposition to the gerontocracy,” he acknowledged
Whereas meme cash could also be extra fashionable, Hayes says governments have one simple benefit in pushing CBDCs.
“Governments which can be critical about CBDCs will mandate that taxes be paid in them. Provided that it’s essential to pay your taxes or get shot within the head, they may acquire adoption alongside or despite meme cash,” Hayes added.
Crypto’s subsequent Black Swan?
Hayes made waves in 2023 when he predicted the banking disaster. We requested him what the following main crypto shock might be, and he pointed in direction of a world struggle.
“The Europeans at the moment are hell bent on gearing up for struggle given Trump desires to discover a peaceable resolution to the Ukraine/Russia struggle. What if there’s a nuclear trade between Europe (NATO) and Russia?”
he acknowledged.
Arthur Hayes has stated that AI would favor Bitcoin due to its energy-backed nature. However let’s go deeper, what’s the wildest state of affairs you see the place AI and crypto collide?
He envisions a close to future the place AI brokers management monetary transactions, on and off-chain. Hayes talked about that “People will depend on AI brokers to conduct all of their monetary transactions, which can exist all on-chain within the close to future.” He added “I’m speaking about each native crypto and TradFi belongings.”