Arthur Hayes, co-founder of BitMEX, anticipates a surge in Chinese demand for Bitcoin (CRYPTO: BTC) as Beijing leans towards aggressive monetary stimulus to combat the effects of its prolonged property crisis.
What Happened: Hayes argues that China’s adoption of quantitative easing (QE)—mirroring approaches used by the Federal Reserve and European Central Bank—will drive yuan debasement, making Bitcoin a more attractive option for wealth preservation.
In a blog post issued Monday, Hayes suggests that, should China implement large-scale QE, as many economists expect, this would likely lead to a significant yuan devaluation.
This “monetary chemotherapy,” as Hayes calls it, would primarily benefit large financial institutions and well-capitalized players while gradually eroding purchasing power for average citizens.
“Bitcoin is not a foreign concept to middle and high-income coastal urban dwellers,” Hayes notes, pointing out that Chinese citizens are adept at utilizing P2P platforms, including Binance …
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