Key Takeaways
- Hayes advocates gold devaluation to generate funds for Bitcoin.
- He proposes a $10,000–$20,000/oz gold revaluation to boost the TGA.
- Global competitors are also exploring strategic Bitcoin reserves.
Arthur Hayes, former CEO of BitMEX, has called on the incoming Trump administration to devalue gold and establish a strategic Bitcoin reserve as a means of fostering economic growth.
In a recent Substack article, Hayes suggested the U.S. Treasury create additional dollars by reducing gold’s value, enabling the purchase of Bitcoin to cement its role as a global financial leader.
Gold revaluation plan
Currently, the U.S. Treasury values gold at $42.22 per ounce.
Hayes proposed revaluing gold to $10,000–$20,000 per ounce, which could significantly increase the Treasury General Account’s (TGA) dollar balance.
These funds, he argued, could then be used to inject liquidity into the economy or purchase Bitcoin.
Implementation strategy
Hayes wrote:
Quickly and dramatically weakening the dollar is the first step toward achieving economic goals.
He also emphasized that gold devaluation could be implemented without legislative hurdles, giving the administration an effective tool to meet its objectives within Trump’s first 100 days.
Expected impact
Hayes contends that a government holding significant Bitcoin reserves would naturally implement policies favorable to the cryptocurrency industry.
While he doubts the Treasury will directly buy Bitcoin, he sees gold devaluation as a critical step to create capital for strategic investments.
Global competition
The U.S. isn’t alone in considering a Bitcoin reserve.
Russia, Japan, and even Vancouver, Canada, have explored similar plans, highlighting a global race to establish dominance in digital assets.
Time constraints
Hayes warned that Trump’s administration has limited time to enact impactful policies, urging bold moves early in 2025 to capitalize on its mandate.
