Arthur Hayes: Bitcoin is a superior tool for the global financial movement of capital, while gold can only be digitally moved in paper form.

On May 15, CEX co-founder Arthur Hayes released a new article saying, "Given that we know that foreign portfolio assets total $33 trillion, what follows is a mental masturbation exercise to think about how much capital will be withdrawn from the U.S. and flowed into Bitcoin." What if 10% of assets ($3.3 trillion) fled to Bitcoin in the next few years? At the current market price, the exchange holds around $300 billion in Bitcoin. If 10x the capital tries to squeeze into the market, it will cause the price to rise much more than 10x. This is because the final price is set by the margin. Of course, long-term holders will flock to sell Bitcoin for fiat if the price soars to $1 million, but an epic short squeeze will occur as these portfolio assets migrate to Bitcoin. Bitcoin is a superior tool for global financial mobile capital because it is a digital holder asset. There is no need for an intermediary to store and transfer wealth. Gold can only be moved digitally in paper form. This means that a financial intermediary must be trusted to store your physical gold, and then you trade digital receipts. These intermediaries will be subject to financial regulatory constraints aimed at segregating capital domestically to support national priority industry policies in order to pay taxes. So, unless you're a state or quasi-state actor, gold can move as a physical holder asset."