Bankless Arthur Hayes Says, “Get your Bitcoin, and Get Out!”
52 snips
Mar 22, 2023 
Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, dives deep into the tumultuous state of the financial landscape. He discusses his latest essay, "Kaiseki," critiquing predictions like Balaji's $1M Bitcoin bet and navigating current banking challenges. Hayes explores the implications of the Bank Term Funding Program, rampant inflation, and the contrast between inside and outside money. He highlights the risks of hyperinflation and asserts the importance of Bitcoin as a resilient asset amid economic chaos.
AI Snips
Chapters
Transcript
Episode notes
Money Printer Go Burr
- Central banks consistently print money in response to financial crises, creating new terms like "quantitative easing".
- This response is driven by the fear of deflation and aims to maintain financial fluidity.
The Banking Sector Trap
- Following the 2008 crisis, smaller banks received a large influx of deposits and invested in long-term government bonds.
- This strategy, seemingly risk-free, exposed them to significant duration risk as interest rates rose.
The Fed Rug Pull
- The Fed's rapid interest rate hikes caused significant losses for banks holding long-term bonds.
- Banks used "held-to-maturity" accounting to avoid marking down these losses, creating a hidden risk.