Former BitMEX CEO Arthur Hayes has published an article titled For War, where he explains how Bitcoin will protect capital during a war.
He said governments have a wide variety of tools to ensure citizens’ financial loyalty and limit their ability to invest. In this context, he suggested that attention should be paid to decentralized assets that cannot be completely banned and whose value is not tied to the banking system.
“Any digital asset held by banks can be confiscated, regardless of currency. You have to exit completely,” he said.
Hayes noted that while authorities could potentially ban the conversion of fiat money to bitcoin, it would not be so easy for them to confiscate it from their owners.
First, the assumption that a public address belongs to a specific person does not imply that they have access to the funds in the account. Also, cryptocurrencies have no physical arrangement allowing you to convert and use them silently.
“I can memorize the seed phrase and spend it whenever I want without anyone noticing. There is no externally visible indication of how much bitcoin I have,” the former head of BitMEX explained.
He stressed that the state cannot take complete control of bitcoins without the owner’s consent. Even in the case of physical threat and pressure, the owner of the cryptocurrency can refuse to transfer the private key.
Free markets thrive during the war. According to Hayes, if the goods on them were priced in electronic currency, that currency would be bitcoin.
He suggested that in the future, the value of the asset will shift from the fiat exchange rate to the oil rate.
Hayes is confident that now is the best time to buy his first cryptocurrency.
“Bitcoin is the best tool for ordinary people to protect their wealth,” he wrote.
In conclusion, Hayes added, an individual’s financial flexibility is only guaranteed if capital is diversified.
Remember, in October 2020 the US Department of Justice and CFTC BitMEX owners Arthur Hayes sued Ben Delo, Samuel Reid, and head of business development Greg Dwyer for violating the Bank Secrecy Act and KYC/AML procedures.
That same month, Reed was arrested in the United States and released on $5 million bail. Case and Hayes surrendered to US authorities in March and April 2021, respectively. They were released on $20 million and $10 million bail.
In the spring of 2022, Hayes, Delo and Reid were found guilty of violating the Bank Secrecy Act and each pledged to pay $10 million in fines.
At the end of May, Hayes was sentenced to two years of probation.
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Source: Fork Log
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