It should be noted that the prospects of Bitcoin's future popularity are already evident. This is supported by the willingness of global giants like Fidelity Investments to add BTC support to their 401(k) pension plan. This is a private pension fund that allows a portion of one's salary to be set aside for investment without being subject to income tax.


Accordingly, more and more ordinary people will eventually have the opportunity to automatically invest in BTC. This will consequently lead to buying the cryptocurrency and increasing buyer pressure, which is usually good for the asset’s exchange rate. Read more about the Fidelity initiative in a separate article.

How much will Bitcoin be worth in a few years

With sanctions imposed on Russia in the wake of its invasion of Ukraine, a huge geopolitical and economic turnaround is coming, says Hayes. As the US and the European Union struggle to reduce their dependence on Russian energy and food, the long-term consequences are certain to hurt them and send the Bitcoin price on a new flight to the moon.

Inflation, already at a 40-year high before the conflict in Ukraine, is exacerbated by Western sanctions, while Russia is worried about the West freezing hundreds of billions of dollars worth of its assets. China, meanwhile, is monitoring the situation to protect itself from a repeat of similar actions already targeting its assets.


In other words, China - as well as some other countries - will want to secure their own assets. And since they could easily be frozen in conventional digital form, Bitcoin and gold will be among the options for transferring savings. Still, they cannot be controlled and withdrawn - which could be a key requirement for countries with ambiguous relations with other states from the EU and the US in particular.

At the same time, China's interest in Bitcoin will spur the interest of other countries, which will probably start doing similar things, at least for the sake of hedging, i.e. reducing possible risks. So it's the massive interest in crypto that will be the reason for their incredible growth, which is what Hayes is betting on.


Former BitMEX CEO Arthur Hayes

According to Cointelegraph, since the late 1990s, China has been selling cheap goods to the West in exchange for currency, which is then returned to importers in exchange for government debt. This keeps interest rates low, making Chinese goods even cheaper. Disrupted supply chains, inflation and now the risk of asset confiscation are changing the status quo. However, rather than changing its production model, Hayes believes that China needs to find a way to reduce its dependence on other countries' economies.

The future of the European Union is even bleaker. In Hayes’ view, it is incapable of self-sufficiency, so abandoning Russia and its resources would be an occasion for internal strife that would lead to the disintegration of the EU. Exporters like Germany will not be able to compete with China, and inflation will cause internal anger in the EU between north and south. Here is Arthur’s rejoinder on the subject.

The ECB is trapped, the EU is finished and within a decade we will be trading lira, drachmas and German marks again. As the union collapses, money will be printed in huge quantities in a pantheon of different local currencies. Hyperinflation cannot be ruled out.

In other words, the logic of Hayes' argument boils down to the problems of fiat currencies, which are now in substantial demand. And because they will get cheaper because of inflation, cryptocurrencies should get more expensive in fiat terms at least. Well, the ability to save money with digital assets could spark demand for them, which then raises the value of assets beyond just nominal value.

Bitcoin exchange rate

In this prediction, Bitcoin is set to take a key role in the global economy, says Hayes.

When European investors smell trouble, they will run to hard assets like gold and Bitcoin. EU collapse = $1 million per Bitcoin.

The truth is, will that million be equal to today’s million dollars in purchasing power? Probably not – hyperinflation could seriously devalue US currency and other money. In any case, Bitcoin is still the best investment for capital accumulation.

BitMEX co-founder Arthur Hayes


We think Arthur Hayes' point of view is more than logical. Obviously, freezing billions of dollars worth of Russian assets will be a cause for concern for other states. As a result, they will have a conclusion: either get involved with non-transportable and indivisible gold, or get interested in the world's main digital asset with limited supply, fixed inflation and other bonuses. And with massive popularity and purchases of the cryptocurrency by giant countries, BTC's current record of $69,000 clearly won't last long.


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