The ex-CEO of BitMEX cautions that if exchange-traded funds (ETFs) tracking Bitcoin (BTC) experience excessive success, they have the potential to “completely obliterate” the cryptocurrency as the spot price of Bitcoin dips to $43,687.
Hayes, one of the co-founders of the cryptocurrency exchange BitMEX established in 2014, clarified in a blog post on Dec 23 that the value of Bitcoins stems from its dynamic nature and ability to move.
Nevertheless, according to his statement, the essence of spot Bitcoins ETF lies in their ability to “accumulate assets” and securely safeguard them, akin to storing them in a symbolic vault.
Should Bitcoin ETF issuers retain all the Bitcoins, and investors opt for Bitcoin derivatives rather than holding onto the cryptocurrency, the network’s transaction volume may dwindle, leading miners to lose motivation to continue validating transactions.
However, When miners cannot cover the energy costs to operate their machines, they ultimately power them down,” stated Hayes. “The absence of miners leads to the network’s demise, resulting in the disappearance of Bitcoin.
Hayes’ Vision: Cryptocurrency’s Evolution Beyond Bitcoin
Fascinatingly, Hayes envisioned that in such a scenario, an emerging cryptocurrency monetary network could step into the role currently held by Bitcoins, potentially surpassing Satoshi Nakamoto’s initial vision of peer-to-peer electronic currency.
Once more, individuals will possess a decentralized monetary asset and financial system free from state control. We hope that this time, we will be wise enough not to entrust our private keys to Wall Street firms.
Hayes’ reflections on Bitcoins coincide with the upcoming approval expected within the next two weeks for all pending spot Bitcoins ETF applications. Bloomberg analysts anticipate this approval occurring between Jan 5 and 10, 2024. BlackRock, We are waiting for the SEC to decide on our spot Bitcoin ETF applications.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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