![\"Co-Founder](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/03\/ddddd-2.jpg\")
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On March 16, Arthur Hayes, the co-founder of the cryptocurrency exchange Bitmex, published a blog post called \u201cEnergy Cancelled,\u201d which describes the economics behind the ongoing Russia-Ukraine war. Hayes explains in his 26-minute long opinion piece that historians may point to February 26, 2022, as the time in history when the \u201cPetro Dollar \/ Euro Dollar monetary system\u201d ended.<\/strong><\/p>\n There\u2019s been a lot of economic calamity since the start of the Russia-Ukraine conflict, as financial conditions worldwide have tightened<\/a> and Russia has been sanctioned<\/a> by a large swathe of countries. Analysts and economists believe the war and sanctions could have negative effects on the global economy and on March 5, the International Monetary Fund (IMF) warned<\/a> the \u201ceconomic consequences are already very serious.\u201d A few days after the IMF warning, U.S. lawmakers introduced<\/a> a bill that sanctions Russia\u2019s gold reserves.<\/p>\n Reports<\/a> indicated on March 13, that the Russian Federation finance minister, Anton Siluanov, explained that half of the country\u2019s gold and foreign reserves were frozen. \u201cThis is about half of these reserves that we had. We have a total amount of reserves of about $640 bln,\u201d Siluanov said. \u201cCurrently, we cannot use about $300 billion of these reserves,\u201d the Russian finance minister added.<\/p>\n Siluanov\u2019s statements have led to speculation concerning an independent international monetary and financial system between the Eurasian Economic Union (EAEU) and China. Moreover, a great deal of vagueness and confusion concerning the Russian\u2019s frozen gold. The journalist Pepe Escobar highlights in his report<\/a> called \u201cSay hello to Russian gold and Chinese petroyuan,\u201d that there is a mystery to be solved. \u201cWhere is that frozen Russian gold?\u201d Escobar\u2019s report asks.<\/p>\n Meanwhile, the co-founder of the cryptocurrency exchange Bitmex, Arthur Hayes, published a blog post<\/a> on March 16, that touches upon canceling the world\u2019s largest energy exporter and the end of the \u201cPetro Dollar \/ Euro Dollar monetary system\u201d<\/p>\n What happens when you “cancel” the world’s largest energy producer \u2026 ? “Energy Cancelled” is an essay on why the post-1971 Petro \/ Eurodollar regime died on 26 February 2022. Are you ready for $1 million #Bitcoin<\/a> and $10,000 #Gold<\/a>?https:\/\/t.co\/EttRAmPPS9<\/a> pic.twitter.com\/LOSqaseq3N<\/a><\/p>\n \u2014 Arthur Hayes (@CryptoHayes) March 16, 2022<\/a><\/p>\n<\/blockquote>\n The blog post written by Hayes is extremely long, but comprehensive and filled with sourced data. Hayes stresses that historians will likely call February 26, 2022, as the end of the monetary system controlled by the \u201cPetro Dollar\u201d and \u201cEuro Dollar.\u201d<\/p>\n Furthermore, Hayes believes a financial crisis will take place and it will stretch across every aspect of the financial system worldwide. \u201cI am 100% certain that there will be a financial crisis of epic proportions predicated on losses faced by commodity producers and traders who touch every aspect of the globalised financial system,\u201d the Bitmex co-founder\u2019s blog post explains. Hayes added:<\/p>\n You cannot remove the world\u2019s largest energy producer \u2014 and the collateral these commodity resources represent \u2014 from the financial system without serious unimagined and unintended consequences.<\/p>\n<\/blockquote>\n The blog post written by the Bitmex co-founder details how the U.S. and the dollar became a dominant force in the world of finance. At one time America was dominant in industrial and manufacturing businesses, but Hayes says these days \u201cAmerica exports finance, not goods, to the world on a macro scale.\u201d<\/p>\n Hayes also talked about fiat currencies and how humans have devised ways to send \u201cvalue electronically over centralised permissioned digital networks.\u201d While the SWIFT payments network is operated by a number of countries, Hayes insists SWIFT is \u201ceffectively controlled by the U.S. and EU.\u201d<\/p>\n Hayes explains that there are vulnerabilities when a ruling nation \u201cdecides to block access to the network to any participants.\u201d He says that the point begs the question: \u201cShould you \u2018save\u2019 in assets that ride on this centralised, permissioned digital monetary network?\u201d The blog post highlights that there\u2019s a level of trust given that a nation state will not \u201cexpropriate your \u2018savings.\u2019\u201d The Bitmex founder\u2019s blog post adds:<\/p>\n Remember this, you own nothing, you merely \u2018rent\u2019 your net worth both as an individual or sovereign from the entity that operates the centralised, permissioned fiat digital monetary network.<\/p>\n<\/blockquote>\n Further into the blog post, Hayes says that he believes gold will \u201cphase shift\u201d a great deal higher than the price is today. He believes competition and demand \u201cwill push the marginal last price well north of $10,000, and we could see stupendous prices for gold that seems unfathomable.\u201d<\/p>\n Gold jumping to $10K per ounce or higher will \u201cpsychologically shock\u201d the world\u2019s asset markets, Hayes notes. Hayes wholeheartedly believes that most hard assets that people use to hedge will skyrocket in value and this includes bitcoin (BTC)<\/a>.<\/p>\n \u201cAs gold marches its way above $10,000, bitcoin will march its way to $1,000,000. The bear market in fiat currencies will trigger the largest wealth transfer the world has ever seen,\u201d Hayes explains. He adds that he believes both gold and bitcoin are forms of hard money assets. \u201cBoth are hard money, one is analog (gold) one is digital (bitcoin),\u201d Hayes writes.<\/p>\n Toward the end of the Bitmex executive\u2019s blog post, he describes the pros and cons tied to storing wealth in gold and how it can be cumbersome to store. \u201cMost readers don\u2019t have a vault in a freeport in which to store their yellow pet rocks \u2014 Instead, you would like a more transportable hard store of wealth,\u201d Hayes says.<\/p>\n Hayes finishes his blog post by repeating that \u201cyou cannot cancel the largest energy producer from a monetary system without massive repercussions.\u201d He deduces after the fog of war is dispersed, the economy will \u201cpresent a situation where hard money instruments rule all of global trade.\u201d<\/p>\nSpeculation Concerning an Independent International Monetary and Financial System Free From the Petro Dollar and Euro Dollar Monetary System<\/h2>\n
Bitmex Co-Founder Arthur Hayes Outlines the Consequences Tied to Canceling the World\u2019s Largest Energy Exporter<\/h2>\n
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Vulnerabilities Tethered to Centralized, Permissioned Digital Networks<\/h2>\n
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Hayes Believes if Gold Marches Its Way Above $10K, Bitcoin Will March Its Way to a Million<\/h2>\n