Threat in Institutional Interest in Bitcoin.
Former BitMEX CEO Arthur Hayes shared his concerns with Blockworks regarding the approval of a fund based on bitcoin for spot market trading. He is convinced that such a move could harm bitcoin and its users. Hayes believes that the growth in institutional interest in the cryptocurrency could lead to ambiguous consequences.
He noted that large investment companies, such as BlackRock, act in the interests of state structures, which are keen on keeping citizens within the traditional banking system and subject to inflationary taxes, thus facilitating the repayment of public debts.
In Hayes's view, the introduction of such a system will limit clients' ability to use bitcoin as the primary cryptocurrency: where they previously could exchange fiat money for bitcoin directly, they now acquire a derivative financial instrument backed by the cryptocurrency, which is under asset management and stored away.
Hayes acknowledged that widespread adoption of cryptocurrency could stimulate an increase in its value, but he expressed doubts as to whether this would be a true benefit for bitcoin.
"An ETF is launched, the price goes up, but what happens if all this cryptocurrency is controlled by one organization?" he rhetorically asked, expressing concern about the centralization of control over bitcoin.
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