As we approach the anticipated approval of the Bitcoin spot ETF in early 2024, the role of industry giants like BlackRock becomes increasingly pivotal. This Forbes article, featuring insights from financial expert Arthur Hayes, delves into the potential consequences of this development. While BlackRock’s entry into the Bitcoin market signifies a major shift, it raises critical questions about their profit-driven motives versus the broader interests of the cryptocurrency community.
This piece offers an in-depth analysis of what this could mean for the future of Bitcoin.
Arthur Hayes: BlackRock Can Destroy Bitcoin
Arthur Hayes, co-founder of BitMEX, said if managers like BlackRock are too successful, they will completely destroy Bitcoin.
Hayes added that if BlackRock buys up all the Bitcoin, there will be no more Bitcoin transactions and miners would be unable to afford the energy it costs to secure the network. And as a result, they would shut off their machines — without miners, the network dies, and Bitcoin essentially vanishes.
He also said that the death of Bitcoin would create space for another crypto monetary network to grow in its place [CBDCs]. This network could just be a reboot of Bitcoin or something different that is an improved adaptation of the original Bitcoin.
Read: Bitcoin Positioned For $1M As Wartime Inflation Looms Says Hayes
Potential Possibilities
There are no lies detected here and Arthur Hayes is one of the utmost crypto OGs in the space. His statements are 100% right — once Traditional Finance (TradFi) and these powerful public servants come in, they could essentially control the supply of Bitcoin.
And he is also correct that if the miners have to shut their miners off, then the Bitcoin blockchain would cease to operate. However, I personally believe the miners will not shut their rigs off, I think they will probably get bought out by a lot of these big entities.
Because at the end of the day, BlackRock, the Federal Reserve, and countries around the world are going to want their fair share, and there are public public servants that do not care about the people in any way, shape or form.
Read: Experts Anticipate SEC’s Spot Bitcoin ETF Approval Between January 8th-10th
Hayes Anticipates 30-40% BTC Crash In March
In his latest blog post, Hayes presents a prediction for the Bitcoin market crash in March, anticipating a severe correction of 30-40% due to the looming market volatility and changes in the Federal Reserve’s financial policies.
“I expect Bitcoin to experience a healthy 20% to 30% correction from whatever level it has attained by early March. The washout could be even more severe if the slate of US-listed spot Bitcoin ETFs has already commenced trading. Imagine if the anticipation of hundreds of billions of fiat flowing into these ETFs at a future date propels Bitcoin above $60,000 and close to its 2021 all-time high of $70,000. I could easily see a 30% to 40% correction due to a dollar liquidity rug pull. This is why I cannot buy Bitcoin until these March decision dates have passed.”
Final Thoughts
I personally believe we are seeing BlackRock and other investment firms come into the crypto space because they want to make money, and they also want control. Plus, we have the CBDCs, and I do not know if we will ever have another successful reboot of Bitcoin. But to me, it is more so kind of like a CBDC complete control.
Either way, I am not going anywhere — I do not think Bitcoin is going to zero, but I am going to be a little bit cautious with this. I know a lot of people are very supportive — they are very excited about the Bitcoin spot ETFs getting approved, especially BlackRock’s, but if you take a step back and think about it, what exactly has BlackRock actually done for you? They literally own or have shares of most companies in the US, and essentially own everything that we have.