Bitcoin's Biggest Bull Isn't 'Long Crypto', He's 'Short Government'
Shifting digital fiat into cryptocurrency, he reasons, will be the only way to preserve privacy. Plus, cryptocurrency will allow individuals and businesses to trade in jurisdictions where parties don't trust electronic fiat – or each other, for that matter – because they know cryptocurrencies cannot be tampered with.
"If you want to have a financial presence – and not have somebody else know what you're doing at all times – then you'll use a form of cryptocurrency."
But there may be limits to the value propositions of even true cryptocurrencies today. For example, Hayes sees small value transactions are out of line with a once resounding narrative in the space, that bitcoin is – and should be – a payment system for consumers. Hayes told CoinDesk:
"I don't think bitcoin is going to replace consumer facing activities, like buying a cup of coffee or buying a magazine at a 7-Eleven."
Hayes called bitcoin's user experience "terrible" for these purchases, because public blockchains are slower than private payment systems. So, for a trip to Starbucks, buying coffee with Apple Pay is a better experience than paying with bitcoin, he contends. It's an interesting observation in that many of bitcoin's strongest proponents tend to envision a world where the cryptocurrency is used for everything. Even still, Hayes is just as bullish on bitcoin, as he continues to reiterate what a fantastic mechanism it is for online international payments and anonymity.
And "those trade flows are massive," he said.