Bitcoin has acted in an unanticipated way as geopolitical tensions increase and the global market faces a new wave uncertainty.
The world’s biggest cryptocurrency, compared with many other traditional assets has fared relatively well as the Middle East continues to slide into war and the energy markets respond to possible supply disruptions.
This resilience has raised an important question for some observers: could Bitcoin signal something about the macro-environment that markets haven’t fully priced in yet?
Arthur Hayes shares in our latest interview his views on global economic forces and how the next few months may prove crucial for the financial markets.
Hayes says that on the geopolitical side, investors could be underestimating risks in the event the conflict continues or expands.
“I don’t think global markets are fully priced in [on] a longer war between the US and Iran,” He said. If there is a disruption in energy flows, ripple effects may spread to the entire global economy, resulting in higher prices for oil, increased inflationary pressures and an increase of volatility.
Hayes also says that another major disruption is taking place below the surface, and it’s artificial intelligence.
He believes that AI will rapidly transform the workforce by displacing a large number of workers with knowledge, such as accountants, bankers, and lawyers. The result of a rapid transition could be widespread stress on credit as consumers struggle to service their existing debt.
Hayes says that ultimately, the global system of finance tends to deal with crises using the same method: liquidity. “Bitcoin is essentially just a liquidity smoke alarm,” He says.
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The interview was edited for clarity.
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Source: cointelegraph.com
