Arthur Hayes, former CEO of BitMEX, has some words of wisdom to share in the volatile world of cryptocurrencies. According to him, if spot bitcoin exchange-traded funds (ETFs) become extremely popular, they may even destroy the crypto itself.
A leading figure in the cryptocurrency space, bitcoin-shock-price-warning-as-huge-spot-etf-update-suddenly-revealed/?sh=5b9bc4df57f5″ target=”_blank” rel=”noopener nofollow”>Hayes expressed his concerns. in a December 23 blog post. It highlights the inherent value of bitcoin, which is derived from its ever-changing character. But according to Hayes, the real danger comes from spot ETFs that are meant to take assets and store them in a vault.
If these ETF issuers hoard all the available bitcoin, driving investors away from traditional “HODLing” and turning to btc derivatives, then that is exactly how Hayes sees the end of the world. Transactional activity on the network decreases in this bleak future and miners are no longer motivated to validate transactions.
“Expression” is my last article of 2024. I offer some reflections on the expressions of the crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#crypto investment topic that will ultimately prove useless.
May the Bomb be with you!https://t.co/bG4ZnSjYu5 pic.twitter.com/nbru6yZlJD
—Arthur Hayes (@CryptoHayes) December 23, 2023
As miners' ability to pay energy costs increased, Hayes warned that they would eventually have to shut down their equipment. The result is that bitcoin disappears into cyberspace and the network falls apart.
Despite this gloomy forecast, Hayes believes there is a chance for bitcoin to rise from the ashes. He believes that a new cryptocurrency monetary network could go beyond Satoshi Nakamoto's initial idea and offer a decentralized financial system independent of conventional financial institutions.
BTCUSD trading at $43,262 on the 24-hour chart: TradingView.com
The possible approval of multiple bitcoin spot ETF applications, expected to occur between January 5 and 10, 2024, takes precedence over Hayes' contemplations. Industry titans like Fidelity, BlackRock, Grayscale and others are awaiting the SEC ruling, which may lead to the downfall of major cryptocurrencies or signal a paradigm shift.
A new article by Arthur Hayes has been published. ETFs could kill bitcoin.
It is unlikely that the price of bitcoin will continue to rise enough to sustain miners on its own. This has always been the case, but the remedy was that transaction fees would provide income to the miners. pic.twitter.com/rn7V5hEv2F– HellB (@Crypto_Hellboy) December 24, 2023
In a related development, the price of bitcoin has increased dramatically this year, reaching $45,000 per unit. However, amid this boom emerges a latent threat in the form of BlackRock's upcoming btc spot ETF. Arthur Hayes sounds the warning, stating that their demise may be imminent if these ETFs are successful.
Hayes warns of the possible fall of bitcoin at the hands of BlackRock
According to Hayes, if BlackRock buys every bitcoin in circulation out of a desire to accumulate as much wealth as possible, then transactions would decrease and miners would not be able to make a living maintaining the network. Hayes predicts that bitcoin would die in this catastrophic scenario, giving rise to a new cryptocurrency monetary network.
The SEC may reportedly approve BlackRock's bitcoin spot ETF, as interest in the product grows. There could be a decision in the first days of 2024, according to recently disclosed private conversations.
The world of cryptocurrencies stands at a crossroads, torn between the dangers predicted by people who have spent a considerable amount of time navigating its turbulent waters and the promise of institutional investment.
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