Crypto veteran Arthur Hayes predicts a shift in traditional finance as banks turn toward scarce assets like Bitcoin and gold to hedge against currency devaluation. Driven by rising global debt and inflation, Hayes believes this marks a major move towards what he calls the ‘debasement trade.’ He argues that financial institutions are actively selling off their portfolios of fiat-based instruments to clients and shifting focus to cryptocurrencies and tech assets, signaling a renewed interest in these markets after two decades of hesitation. Hayes emphasizes the ‘scarcity’ nature of these assets, pointing out how Bitcoin’s fixed supply contrasts with the unlimited creation of fiat currencies by central banks. This scarcity is seen as an inherent protection against devaluation. This trend aligns with recent observations like the growing correlation between Bitcoin and gold as inflation and debt levels rise. Institutional investors are increasingly viewing these assets as essential parts of diversified portfolios, driving a potential shift in financial strategies towards tangible, finite-supply investments.