Arthur Hayes, one of the influential names in the cryptocurrency world, evaluated the impact of Bitcoin Spot ETFs in his statement.
Arthur Hayes, noted cryptocurrency market analyst and former CEO of Bitmex, recently raised concerns about the potential implications of the forthcoming spot Bitcoin ETF on the future of BTC.
Arthur Hayes discusses in his most recent blog post titled 'Expression' that he speculates the success of these ETF derivatives could result in the majority of Bitcoin being controlled by a limited number of financial institutions such as Blackrock. This concentration of ownership may potentially result in reduced activity on the blockchain, consequently impacting miners.
The analyst presented a hypothetical scenario in which Bitcoin is held predominantly by a few financial companies. The analyst presented a hypothetical scenario in which Bitcoin is predominantly held by a small number of financial companies. Hayes predicts that if such a scenario were to unfold, it could potentially undermine Bitcoin's value as a store of value. He highlights Bitcoin's unique structure in comparison to other assets traded in financial markets as a factor contributing to this concern.
Hayes elaborated on his predictions regarding the scenario in which all BTCs are controlled by financial institutions and BTC transfers for payment purposes cease.
"Bitcoin is the first monetary asset in human history that exists only if it moves. After Bitcoin block rewards reach zero around 2140, miners will only be rewarded for validating transactions through transaction fees.
This means miners will only earn Bitcoin revenue when the network is used. In essence, if Bitcoin moves, it has value. But if another Bitcoin transaction never occurs between two people, miners will not be able to afford the energy needed to secure the network. As a result, they turn off their machines. Without miners, the network dies and Bitcoin disappears.”
However, in the event that Bitcoin shares this fate, Hayes predicts the emergence of a similar asset that would allow individuals to transact within a financial system independent of any specific country.
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