Arthur Hayes Explains Why Nations Still Prefer Gold Over Bitcoin

Arthur Hayes on Gold Over Bitcoin: Why Governments Trust Gold More

Why do countries still trust gold more than Bitcoin? That's the question Arthur Hayes, co-founder of BitMEX, recently discussed. In his opinion, sovereign nations still consider gold over Bitcoin as a safer option to protect one's wealth.

Hayes explained that gold is the standard for governments because they trust its store of value over a span of thousands of years. It's physical, easy to track, and widely accepted across the world. World largest cryptocurrency, on the other hand, is luring those looking for financial freedom in a decentralized manner with no one controlling their money.

Source: X (formerly Twitter) 

Gold: The Ultimate Safe-Haven Asset

Centuries have passed, and this physical asset has always been a part of human history. It depends on no government, and its values have survived wars, recession, and inflation. When markets become turbulent or there is an escalation in political tensions, investors and countries turn to this asset for safety.

According to Hayes, the biggest strength for gold is its stability. It doesn't swing heavily, like Bitcoin does. Central banks keep buying it against currency risk and to balance their books. Its use in industries such as electronics and medicine adds to its long-term demand.

In other words, this asset has stood the test of time. It's not exciting, but it's reliable and that's what nations want.

Bitcoin: Modern but Risky Option

New, fast, and digital, but this digital currency is also unpredictable. Hayes thinks that though BTC is all about giving power back to the people, it's not quite ready to replace the physical asset on a national level. Governments want assets predictable in character and easy to handle, and those swings in its price make that tough.

He added that the decentralized system of crypto can also be tricky for nations. No one controls it, which makes it great for personal freedom but hard for countries trying to manage financial stability. It's value also originates much from speculation, while XAUUSD has practical uses that keep its demand strong.

Still, its popularity continues to grow. More and more people see it as a form of "digital gold"especially as global money printing continues.

Gold vs Bitcoin Comparison

Gold Price Performance (1-Year View)
It is trading near $4,001, up 47.9% in the past year. The steady climb reflects global demand for stability as nations hedge against inflation and currency devaluation.

Source: Trading View

Bitcoin Price Performance (1-Year View)

BTC is trading near $102,232, up 34.6% YoY. Despite high volatility, it remains a leading digital asset, reflecting investor optimism amid shifting global liquidity and macroeconomic conditions.

Source: CMC

The above charts suggest different nature of both the assets, XAUUSD has a stready growth, while BTC has a volatile graph. 

The Global Shift and Future Outlook

Hayes also noted recent oil trades between China and Saudi Arabia settled in yuan instead of U.S. dollars. He believes these types of moves signal slow but important changes in the global economy and both could benefit from it.

In the long run, Arthur Hayes Bitcoin prediction may eventually align with XAUUSD as the dollar weakens. But for now, he says sovereign nations will continue choosing the yellow metal because it’s proven, stable, and accepted everywhere.

Conclusion 

Arthur Hayes' view crystallizes one thing: the yellow metal asset represents trust, while the digital asset represents freedom. And nations want stability, while people want independence. Till the time BTC gets as stable and widely accepted as the physical asset, countries will continue to opt for gold over Bitcoin - the world's oldest and most trusted form of money.