The former CEO and co-founder of crypto exchange BitMEX, Arthur Hayes, has shared his thoughts on what could lead to Bitcoin’s demise. Also his recent comment reiterates the reservation that the crypto founder has about the possible launch of Discover Bitcoin ETFs.
TradFi could lead to the demise of Bitcoin
In his last article for the year, Hayes stated that TradFi asset managers would “completely destroy Bitcoin” if the ETFs managed by them were a great success. He made this claim while alluding to Bitcoin’s uniqueness. Hayes said the flagship crypto token is unlike “any other monetary instrument humanity has ever used.”
Due to Bitcoin’s unique nature, Hayes believes it was not designed to be owned by these asset managers. As such, they could ultimately destroy the crypto token, especially in a world where the world’s largest asset managers ultimately own all the shares. Bitcoin in circulation. If that were to happen, these companies would end up stockpiling these crypto tokens, which Hayes says should not be the case.
The co-founder of BitMEX noted that Bitcoin “only exists when it moves” and that it will “die” if not used. His position stems from the fact that he sees Bitcoin more as an asset meant to be actively traded, and not just as a store of value. He also highlighted the fact that the Bitcoin network would also die if this happened.
Miners have been known to do that earn transaction fees of the network being used. However, if these tokens were no longer traded but were all stored, these miners would have no choice but to cease their operations. Without these miners, “the network dies and Bitcoin disappears,” Hayes claimed.
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Hayes’ thoughts on a Spot Bitcoin ETF
Arthur Hayes’s latest comment anticipates a possible approval of the pending Spot Bitcoin ETF applications. The former CEO of BitMEX did that previously expressed his reservations about these funds and their issuers. He then said that these TradFi institutions were not bullish on Bitcoin, but were simply making this move to become “crypto gatekeepers.”
Hayes also went so far as to discuss how these companies’ interest in Bitcoin goes against Satoshi’s vision of a decentralized system. Unlike Hayes, however, some are looking at the bright side and how institutional interest in the top cryptocurrency can help with mainstream adoption.
Bloomberg analyst Eric Balchunas had ever touched about the importance of these Spot Bitcoin ETFs, especially considering that many could simply choose to hold Bitcoin. According to him, these ETFs are important because of the convenience they offer investors. Meanwhile, others are excited about the amount of capital that could flood in if these ETFs are approved.
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