Arthur Hayes, cofounder of BitMex, discusses how he’s trading the Merge, the impact of macroeconomic policy in the markets, his career as a writer, and much more.
Show highlights:
- how crypto is reconfiguring how humans do finance over the internet
- why Arthur initially thought Ethereum was worthless
- how NFTs allow users to trade human culture and will unlock trillions of dollars of value
- why Ethereum doesn’t even need to be deflationary
- whether other layer 1s can take some market cap from Ethereum
- why Arthur thinks that a successful Merge is understated and why this is a valid reason for hedging
- why he thinks an Ethereum proof of work chain won’t succeed and how Arthur will trade ETHPoW
- why LDO, Lido’s token, is a riskier bet but has more potential gains
- how he believes the Shanghai upgrade will impact ETH’s price
- whether the Merge affects BTC’s narrative as digital gold and whether the inflation hedge theory of Bitcoin still holds
- why Bitcoin is a measure of USD liquidity and why the Fed rates don’t matter as much as everyone thinks
- whether hedge funds and institutional investors would want to invest in crypto given the high correlation with traditional markets
- what Arthur believes the impact of a potential US recession would be on the crypto markets
- why he believes the real economy is not relevant to the financial markets
- whether algorithmic stablecoins are doomed to fail
- how the credit cycle works and how it repeats again and again
- Arthur’s method for identifying good projects to invest in
- how Arthur became such a good writer
- whether BTC is money and the religious aspect of the Bitcoin culture
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Episode Links
Previous Coverage on Unchained:
- With the Merge, Will Ethereum Take Over Bitcoin’s Title as Digital Gold?
- Why Kevin Zhou Believes Ethereum Will Have 3 Forks After the Merge
- Post-Merge, If Lido Becomes Dominant, What Does That Mean for Ethereum?
Arthur’s posts discussed during the show:
- Eth-Flexive
- Ether, a double digit shitcoin
- Teach me Daddy (on USD liquidity and Macroeconomics)
Macroeconomics:
- Adam Cochran on the Fed’s QT
- Pantera Capital’s newsletter
ETH Trade:
- Whether Ethereum’s Merge is priced in
- Gauntlet’s view on the Merge
- BTC correlation with stocks
ETH Post-Merge Dynamics:
- Cumberland on the Ethereum dynamics after the merge
- Miles Suter on the implications of the Merge
- The triple point asset
Read the episode transcript here