Billionaire and BitMEX co-founder Arthur Hayes shared a recent prediction about a possible “destruction” of Bitcoin (BTC) following the launch of the Bitcoin spot exchange-traded fund (ETF). The forecast throws cold water on the community considering that an ETF is highly anticipated in the market, which could push the industry to new highs.
In his prediction, shared in a recent blog post on December 22, Hayes highlighted that the market’s largest cryptocurrency would be completely destroyed if “ETFs managed by TradFi asset managers were too successful.”
“Fundamentally, if ETFs run by TradFi asset managers are too successful, they will completely destroy Bitcoin. This prediction is based on an important, subtle but profound difference between Bitcoin and every other monetary instrument humanity has ever used,” said Hayes.
Hayes made a comparison between Bitcoin and gold, highlighting that if a person dug a hole and deposited gold and reams of paper and came back in 100 years, the gold and paper would still exist, however with Bitcoin it is completely different.
“Bitcoin is the first monetary asset in the history of humanity that only exists if it is moved. After Bitcoin block rewards reach zero around 2140, miners will only be rewarded for validating transactions through transaction fees. This means that miners will only receive income in Bitcoin 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 not be able to afford the energy needed to secure the network. As a result, they would shut down their machines. Without miners, the network dies and Bitcoin disappears.”
The crypto community estimates that a Bitcoin ETF will be launched in January 2024. The expectation is that two events in 2024 will boost market prices, the launch of a spot Bitcoin ETF and the BTC halving.
At the time of publication, the price of Bitcoin was quoted at US$43,621.27, up 0.2% in the last 24 hours. In the last seven days, Bitcoin has increased its price by 3.3%.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.