Former Bitmex CEO Arthur Hayes: ETF Success’ Might ‘Destroy Bitcoin’

Arthur Hayes, erstwhile CEO of Bitmex and cryptocurrency marketplace analyst, pondered astir the occurrence of an upcoming spot bitcoin ETF and its effect connected the aboriginal of bitcoin. Hayes states that the popularity of these ETF derivatives mightiness ore the custody of each the bitcoin successful a fewer hands that won’t determination it, forcing miners to capitulate owed to a deficiency of enactment successful the blockchain.

Arthur Hayes Believes ETFs Might Cause the Demise of Bitcoin

Former Bitmex CEO Arthur Hayes believes that the occurrence of an upcoming spot bitcoin ETF mightiness endanger the beingness of the Bitcoin network. In his astir caller blog post, “Expression,” Hayes presents a hypothetical concern successful which bitcoin is each successful the hands of a fewer fiscal firms, similar Blackrock.

If this happens, Hayes anticipates this volition destruct bitcoin arsenic a store of value, fixed that it is antithetic from each of the assets traded successful fiscal markets until now.

Hayes argued:

Bitcoin is the archetypal monetary plus successful quality past that exists lone if it moves. But if determination was ne'er different Bitcoin transaction betwixt 2 entities, miners would beryllium incapable to spend the vigor it costs to unafraid the network.

The effect of this would beryllium the shutdown of the full Bitcoin web owed to the starvation of miners who volition person fees lone from bitcoin transactions aft the subsidy ends circa 2140.

Hayes adds that this could hap if users travel to worth bitcoin arsenic a fiscal plus much than a store of value, favoring the acquisition of derivatives alternatively of the cryptocurrency. However, if bitcoin suffers this fate, Hayes anticipates the commencement of a akin plus to let radical to transact successful a non-state-owned fiscal system.

“Hopefully, the 2nd clip around, we volition larn not to manus our backstage keys to the baldies,” helium concluded.

What bash you deliberation astir Hayes’ sentiment connected the occurrence of a spot bitcoin ETF and its effect connected bitcoin? Tell america successful the comments conception below.