The encryption industry is experiencing a high rise in popularity, Arthur Hayes shares investment insights.

The Token2049 conference held recently in Singapore was unprecedented, with attendance doubling from last year to over 20,000 people. The venue was bustling with crowds, and various party activities were in abundance, even featuring a flash performance by a stripper. The entire city was vibrant, with hotels fully booked and restaurants hard to come by. This grand event may set a historical high for the economic benefits brought to Singapore.

In stark contrast to traditional finance meetings, encryption industry professionals display great enthusiasm and vitality. Traditional finance professionals, on the other hand, deliberately maintain calmness, trying to conceal the nature of their plundering of ordinary people's wealth through inflation.

Arthur Hayes reviewed his macro prediction record from the past year and found that the accuracy rate was only 25%. However, he stated that even if the prediction accuracy is not high, as long as the policy response is as expected, substantial gains can still be achieved. The key lies in grasping the overall trend - the government continuously prints money to suppress market fluctuations.

Hayes believes that in order to maintain the appearance of stability, the government needs to print more and more currency. This fiat currency will eventually flow into cryptocurrencies such as Bitcoin. As an investor, the key is to acquire Bitcoin at the lowest cost, which can be achieved in various ways.

Short-term price fluctuations are difficult to predict, but as long as leverage is not abused, the real risk arises from a systemic reset when the government can no longer suppress volatility. Even so, the decline of Bitcoin relative to assets like energy will be smaller.

Hayes expects that the Federal Reserve will continue to cut interest rates to near zero, and bank credit will also accelerate growth. Major economies such as the EU and China may also adopt loose policies. In this environment, the fiat value of cryptocurrencies is expected to rise. He suggests that investors can increase their allocation to encryption currencies to seize this round of rising opportunities.