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BitMEX Co-Founder Predicts the Death of Bitcoin Following ETF Launch

Published 23/12/2023, 07:18
© Reuters.  BitMEX Co-Founder Predicts the Death of Bitcoin Following ETF Launch
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  • BitMEX co-founder Arthur Hayes predicts the destruction of Bitcoin following the ETF launch.
  • Hayes asserts that the success of traditional finance platforms’ ETFs will result in the death of BTC.
  • The prediction is based on the findings that Bitcoin’s existence is completely dependent on its use.

BitMEX co-founder Arthur Hayes, who is known for his bold comments on crypto, recently predicted the potential debacle of the largest cryptocurrency, Bitcoin, following the Spot Bitcoin ETF launch. Elaborating on his prediction, Hayes asserted that Bitcoin would be completely destroyed if “ETFs managed by TradFi asset managers are too successful.”

In a tweet dated December 23, Hayes introduced his final article of 2023 under the title “Expression.” The article concentrates on “expressions of the crypto investment theme that will ultimately prove to be worthless.”

Hayes based his predictions on the basic difference between Bitcoin and other monetary instruments that ever existed in the world. Contrasting the physical existence of other monetary elements, including gold and fiat currencies, the BitMEX co-founder cited, “Bitcoin is the first monetary asset in human history that exists only if it moves.”

To share more insights into the significance of Bitcoin’s motion for its existence, Hayes illustrated it with the example of mining rewards. He stated,

Miners will only receive Bitcoin income if the network is used. In essence, if Bitcoin moves, it has value. But if there was never another Bitcoin transaction between two entities, miners would be unable to afford the energy it costs to secure the network. As a result, they would shut off their machines. Without the miners, the network dies, and Bitcoin vanishes.

Hayes’ prediction reiterates the death of Bitcoin when it becomes “just another state-controlled financial asset.” However, he added that the death of Bitcoin will give rise to an enhanced adaptation of the original Bitcoin, thereby building another crypto monetary network and “non-state-controlled monetary asset and financial system.”

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