On May 15, BitMEX co-founder Arthur Hayes released a new article stating, "Given that we know the total foreign portfolio assets are 33 trillion dollars, the next step is a mental masturbation exercise to consider how much capital will leave the United States and flow into Bitcoin. What if 10% of assets (3.3 trillion dollars) escape to Bitcoin in the coming years? At current market prices, exchanges hold about 300 billion dollars worth of Bitcoin. If 10 times the capital tries to enter the market, it will cause the price to rise far more than 10 times.
This is because the last price is set by the margin. Of course, if the price soars to 1 million dollars, long-term holders will rush to sell Bitcoin for fiat currency, but as these portfolio assets migrate to Bitcoin, an epic short squeeze will occur.
Bitcoin is a superior tool for moving global financial capital because it is a digital holder asset. Storing and transferring wealth does not require intermediaries. Gold can only be digitally moved in paper form. This means you must trust a financial intermediary to store your physical gold, and then you trade digital receipts. These intermediaries are constrained by financial regulations aimed at isolating capital domestically to support national priority industries. Therefore, unless you are a state or quasi-state actor, gold can only be held as a physical asset."
