By Michael Scott
BitMEX co-founder says that the Wall Street behemoth will just ‘clear up’ Bitcoin and retain them in a ‘figurative vault.’ If successful, the number of Bitcoin transactions would drop drastically. BitMEX ex-CEO cautions that spot Bitcoin exchange-traded funds (ETFs) could ‘totally wreck’ Bitcoin if they are too successful.
In a December 23 blog post, Hayes, who co-founded BitMEX in 2014, said that Bitcoin contains value due to its ‘movement.’ Nevertheless, spot Bitcoin ETFs are designed to ‘clear up’ assets and ‘keep them in a symbolic vault.’
Significance of Spot Bitcoin ETF
In case Bitcoin ETF providers ultimately hold all the Bitcoin, and investors finally purchase Bitcoin derivatives instead of HODLing themselves, the number of transactions might drop significantly. Additionally, miners will lack all incentives to continue validating transactions.
Hayes claimed the final result is miners switching off their machines since paying for the energy needed to operate them will be impossible. In the miners’ absence, the network collapses, and Bitcoin disappears.
Basically, if the exchange-traded funds controlled by TradeFi managers become excessively successful, they will totally wreck Bitcoin. Remarkably, Hayes envisaged that in case this kind of scenario happened, a new cryptocurrency monetary network would replace Bitcoin.
In addition, it would expand upon Satoshi Nakamoto’s native version of P2P electronic money. Hayes also said that thinking about it is beautiful. In case Bitcoin is another state-managed financial asset, it collapses since it is not utilized.
BitMEX Official Projects Bitcoin ETF Approval to Undermine Performance of Crypto Assets
Hayes said people will again have a non-state-governed financial and monetary asset system. Confidently, given another chance, they will learn not to give their private keys to Wall Street companies.
Hayes’ Bitcoin reflections happen only two weeks prior to the expected sanctioning of all awaiting spot Bitcoin exchange-traded fund applications. Analysts say the approvals will occur between January 5 and January 10 next year.
Examples of firms awaiting a decision by the Securities and Exchange Commission (SEC) regarding their applications for spot Bitcoin BTFs include Bitwise, Ark Invest, Global X, Grayscale, Invesco and Galaxy, Pando Asset, Fidelity, Hashdex, Wisdom Tree, BlackRock, WisdomTree, and Ark Invest.
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