Arthur Hayes, Co-Founder and CEO of BitMex, explained in his latest blog post how the adoption of Bitcoin ETFs will, contrary to popular belief, bring about the end of Bitcoin.
Hayes, who started his long blog post by touching on the similarities between Bitcoin and a meal he loves very much, talked about the interest policy followed by America, election strategies, the current state of decentralized finance and the current situation of decentralized finance. Bitcoin ETFHe evaluated his ‘s.
In his article, he underlined how much he loved the Hokkaido king crab dish and made the connection with Bitcoin as follows:
“What is the similarity between Hokkaido king crab and Bitcoin? One is the most delicious dish among seafood, the other is the best option among financial products.”
Bitcoin doubles traditional finance
Hayes first showed Bitcoin’s value in a chart comparing gold, American stock markets, and Bitcoin. January 1, 2020compared to others since 228% higher performance referring to what you show “best option” underlined his emphasis.
He continued his article by talking about how FED Chairman Powell and Treasury Secretary Yellen shaped the American economy under the control of President Biden. Hayes says Biden will use unprecedented inflation to get re-elected interest rate increases how they suppressed it and the available information to deceive the public How are oil reserves scattered around? He mentioned that the prices were reduced.
Regulations bring an end
“Regulated decentralized finance” Hayes, who lists his criticisms against this approach under the title, mentions that such formations are doomed to lose:
“DeFi is a market with many individual investors, and unlike traditional finance, institutional investors are not involved in this market. If you regulate such markets, make them “permitted” and allow institutional investors to be involved in the process, you will dry up these markets. Because markets filled with single investors are the favorite types of markets for institutional investors. Institutions profit from the emotional individual investor’s money. In such regulated markets, individual investors will not trade, corporate hype will fade over time, corporates will leave due to inadequate trading, and projects will be killed.” said.
We’re shooting ourselves in the foot, Bitcoin ETF will destroy Bitcoin
Finally, Hayes, who attributes all these to the subject he really wanted to talk about, Bitcoin ETFs, said that after the acceptance of Bitcoin ETFs, the fixtures of traditional finance Bitcoin will take over its flag and this process will completely destroy Bitcoin. he stated.
Hayes went into the details of his hypothesis by mentioning that all monetary assets used to date are based on physical foundations.
“Any fiat money or gold can be waiting for you in the same place 100 years later, where you left it. But Bitcoin is not like that. For Bitcoin to exist, it must move. If you let it go, it will disappear.”
In these words, Hayes said that even leaving paper money or precious metals unused for hundreds of years would not have any negative effects on them, but Bitcoin is constantly traded and can only survive if used and he mentions that this creates its value.
As it is known, Bitcoin distributes rewards to miners from each block discovered until 2140, that is, until the block rewards are reset. Apart from this, miners also earn income from transaction fees. In this case, they keep their computers on and ensure Bitcoin lives.
However, if the transaction does not take place, new blocks are not created, and therefore miners do not make any profit, they close the systems. This causes Bitcoin to disappear.
Stating that Bitcoin ETFs will exactly drag Bitcoin into this situation, Hayes said that if institutional investors buy Bitcoin ETF instead of buying, transacting or using Bitcoin and own Bitcoin without going through all these processes, no transactions will start to take place on the network over time. miners will shut down the systems because they cannot make a profit, and this situation He claims that it will spell the end of Bitcoin.