Arthur Hayes, the founder and former CEO of cryptocurrency exchange Bitmex, has issued a warning to the crypto community following the anticipation of the U.S. Securities and Exchange Commission (SEC) approving a spot Bitcoin ETF. Hayes suggests that if spot Bitcoin ETFs offered by traditional finance (TradFi) giants like BlackRock are successful, they could potentially lead to the extinction of Bitcoin (BTC).
In his latest blog post, Hayes expressed his concerns about TradFi companies potentially killing Bitcoin, warning that their ETFs, if too successful, could completely eradicate the cryptocurrency. He used an analogy comparing Bitcoin to gold and paper, stating that while the latter two would still exist after being buried for 100 years, Bitcoin’s existence is contingent upon active human interaction.
Highlighting BlackRock’s plan to accumulate BTC, Hayes speculated that the firm would store Bitcoin and provide high-level security at exchange points. This would lead people to buy Bitcoin ETF derivatives instead of holding Bitcoin in their own wallets.
Additionally, Hayes added to his alarming predictions by suggesting that in the future, there will be no real-world use for the Bitcoin Blockchain, forcing miners to shut down their devices. He believes that if Bitcoin is merely stored in vaults, miners will only be able to earn Bitcoin through network activity, eventually leading to their withdrawal from the network and the inevitable death of the network itself.
Despite his grim outlook, Hayes predicts that 2024 will be a year for Bitcoin, driven by factors such as the potential approval of a spot Bitcoin ETF by the SEC, the U.S. presidential election, and central banks around the world resuming money printing.
The cryptocurrency billionaire also shared a chart showcasing Bitcoin’s performance against other assets since 2020. According to the graph, Bitcoin’s price has increased by 228% compared to gold, the S&P 500, and the Nasdaq 100.