Arthur Hayes, former CEO of Bitmex: ETF success could "destroy Bitcoin"

Arthur Hayes, former CEO of Bitmex and Crypto Assets market analyst, reflects on the success of the upcoming SpotBitcoin ETF and its impact on the future of Bitcoin.

Hayes said the popularity of these ETF Derivatives could concentrate custody of all Bitcoin in the hands of a few who won’t move Bitcoin, forcing Miners to Capitulation due to the lack of activity on the Blockchain.

Arthur Hayes Thinks ETFs Could Lead to Bitcoin’s Demise

Arthur Hayes, the former CEO of Bitmex, believes that the success of the upcoming SpotBitcoin ETF could jeopardize the very existence of the Bitcoin network. In his recent blog post “Expression,” Hayes presents a hypothetical scenario in which Bitcoin is all in the hands of a handful of financial companies like BlackRock.

Hayes expects that if this happens, it will destroy Bitcoin’s status as a store of value, as it is different from all the assets traded in the financial markets so far.

According to Hayes:

Bitcoin is the first monetary asset in human history that only exists on mobile. But if Bitcoin transactions no longer occur between the two entities, Miners will not be able to afford the energy needed to secure the network.

The result would be that the entire Bitcoin network would be shut down due to Miner hunger, and after the subsidy ended around 2140, they could only collect fees from Bitcoin transactions.

Hayes added that this could happen if users view Bitcoin as a financial asset rather than a store of value, and thus prefer to buy Derivatives rather than Crypto Assets. However, if Bitcoin suffers this fate, Hayes expects similar assets to emerge, allowing people to trade in the non-state-owned financial system.

He concluded, “Hopefully we can learn a second time not to give the private key to the bald man.” ”

What do you think of Hayes’ take on the success of SpotBitcoin ETFs and their impact on Bitcoin?