- BitMEX co-founder Arthur Hayes predicts the destruction of Bitcoin following the ETF launch.
- Hayes asserts that the success of conventional finance platforms’ ETFs will consequence within the loss of life of BTC.
- The prediction relies on the findings that Bitcoin’s existence is totally depending on its use.
BitMEX co-founder Arthur Hayes, who is understood for his daring feedback on crypto, lately predicted the potential debacle of the biggest cryptocurrency, Bitcoin, following the Spot Bitcoin ETF launch. Elaborating on his prediction, Hayes asserted that Bitcoin can be fully destroyed if “ETFs managed by TradFi asset managers are too profitable.”
In a tweet dated December 23, Hayes launched his remaining article of 2023 beneath the title “Expression.” The article concentrates on “expressions of the crypto funding theme that can finally show to be nugatory.”
Hayes based mostly his predictions on the essential distinction between Bitcoin and different financial devices that ever existed on the earth. Contrasting the bodily existence of different financial components, together with gold and fiat currencies, the BitMEX co-founder cited, “Bitcoin is the primary financial asset in human historical past that exists provided that it strikes.”
To share extra insights into the importance of Bitcoin’s movement for its existence, Hayes illustrated it with the instance of mining rewards. He said,
Miners will solely obtain Bitcoin earnings if the community is used. In essence, if Bitcoin strikes, it has worth. But when there was by no means one other Bitcoin transaction between two entities, miners can be unable to afford the vitality it prices to safe the community. Consequently, they’d shut off their machines. With out the miners, the community dies, and Bitcoin vanishes.
Hayes’ prediction reiterates the loss of life of Bitcoin when it turns into “simply one other state-controlled monetary asset.” Nevertheless, he added that the loss of life of Bitcoin will give rise to an enhanced adaptation of the unique Bitcoin, thereby constructing one other crypto financial community and “non-state-controlled financial asset and monetary system.”
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