Arthur Hayes: Bitcoin is the superior tool for global capital movement, while gold can only be digitally moved in paper form

On May 15th, Arthur Hayes, a co-founder of BitMEX, published a new article stating, "Since we are aware that there is $33 trillion in foreign portfolio assets, the next step is to engage in mental speculation. We consider how much capital will leave the United States and flow into Bitcoin. What if 10% of assets in the next few years ($3.3 trillion) flee to Bitcoin? At the current market price, exchanges hold approximately $300 billion worth of Bitcoin. If 10 times the capital attempts to enter the market, it will lead to a price increase that is far more than 10 times." This is because the final price is determined in a marginal manner. Of course, if the price skyrockets to $1 million, long-term holders will be eager to sell their Bitcoin for fiat currency. However, as these portfolio assets migrate to Bitcoin, an epic short squeeze will occur. Bitcoin is the superior tool for global financial capital movement because it is a digital bearer asset. Storing and transferring wealth does not require intermediaries. Gold can only be digitally transferred in paper form. This means that you have to trust a financial intermediary to warehouse your physical gold and then trade the digital receipt. These intermediaries are subject to financial regulations designed to isolate capital domestically to support nationally strategic industries with tax-supported industrial policies. Therefore, unless you are a national or quasi-national actor, gold can only move as a physically held asset.