© Reuters. Arthur Hayes: “Bitcoin ETFs threaten the existence of Bitcoin itself”
Arthur Hayes said that ETFs linked to , could be beneficial for the US political elite, which is opposed to cryptocurrencies. Hayes explained: unlike fiat currencies, Bitcoin depends on the activity of traders and investors within the network. Bitcoin is the first monetary asset in human history that only exists if it is actively used. This will become especially true after 2140, when the block reward on the Bitcoin network reaches zero, and miners will earn exclusively from transaction fees. According to Hayes, if Bitcoin stops moving, miners will not be able to maintain the security of the network, which will lead to its collapse and disappearance.
Hayes is also concerned about the entry of large asset management companies operating in the traditional finance sector (TradFi) into the crypto space. Typically, these companies accumulate assets, hold them and issue securities without actively using the underlying assets. The co-founder of BitMEX believes that if these companies, along with large Western and Chinese asset managers, hold all the bitcoin in circulation, then the lack of circulation of coins could lead to the demise of the network. This scenario could occur when people choose Bitcoin ETFs instead of purchasing and storing coins themselves, mistaking the financial instrument for a store of value.
“If ETFs managed by companies in the TradFi sector are too successful, they will completely destroy Bitcoin. If Bitcoin becomes a government-controlled financial asset and dies due to lack of user activity, this could create the preconditions for the emergence of another cryptocurrency money network. This network could be a new version of Bitcoin,” Hayes said.
Recently, Arthur Hayes suggested that the growth of Bitcoin could be facilitated by strengthening economic ties between Russia and China. According to his forecast, in the next couple of years the rate of the first cryptocurrency could reach $760,000.
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2023-12-25 07:40:23
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