[NEWS] "If a Bitcoin spot ETF is successful, it will destroy Bitcoin," says Arthur Hayes

Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, published a blog in which he pointed out that if a Bitcoin spot ETF were to succeed, Bitcoin (BTC) would be destroyed.

Hayes said that a Bitcoin spot ETF seemed to please the US political establishment, suggesting that the SEC's approval of a Bitcoin spot ETF was a political ploy.

Existing financial assets exist physically as paper money and gold, but Hayes said that "Bitcoin is completely different." He explained that paper and gold may still exist physically 100 years from now, but Bitcoin is the first financial asset in human history that exists only if it moves. He argued that since miners can also receive rewards when transactions are made, there is essentially value in Bitcoin moving.

However, he warned that if Bitcoin transactions were to disappear, miners would find it difficult to maintain operations, the network would malfunction, and Bitcoin would disappear.

Currently, BlackRock, the world's largest asset management company, and others are applying for a Bitcoin spot ETF, but Hayes points out that these companies will hold large amounts of Bitcoin, which could lead to less trading of Bitcoin itself.

Therefore, he argues that what is important for Bitcoin is that it is actually purchased and traded. He also said that if Bitcoin becomes a financial asset managed by a state, there is a possibility that trading will not take place, and that "it is important not to hand over the private key."

On the other hand, he also said that if Bitcoin were to disappear, other crypto assets could become alternative assets. He expressed the view that no matter what the nature of the crypto asset, "it will create a decentralized financial system that is not managed by the state or the like."

Reference:Blog
Image: Shutterstock

Related articles

US SEC requests submission of revised Bitcoin spot ETF application by the 29th of this month; approval is near