© Reuters
Investing.com – While many analysts predict that the likely imminent launch of spot ETFs in the United States will cause the price of BTC to explode upwards, others have on the contrary highlighted the existential risks that such products represent for cryptocurrency in the longer term.
Speaking to BlockWorks on the On the Margin podcast earlier this week, investor Arthur Hayes, a former co-founder of the BitMEX platform whose opinion on the crypto market is widely listened to, highlighted these risks.
He specifically named the spot Bitcoin ETF proposed by the giant BlackRock (NYSE:), the world’s largest asset manager, which he believes could end the very existence of Bitcoin as we know it.
While Bitcoin represents the antithesis of state currency, designed to allow individuals to send funds around the world, Hayes questioned the consequences if the majority of bitcoins end up in the custody of a small number of institutions, believing that asset managers like BlackRock are “agents of the state” who act in accordance with government directives.
He indeed estimated that these entities will prefer to hold bitcoins in ETFs because this corresponds to the interests of the State, and warned that in such a configuration, the bitcoin essentially becomes a financial asset rather than the decentralized currency that it was supposed to. be.
“You had currencies, you bought this derivative product, and the asset manager went and bought bitcoins which he placed in a custodian, and they sit there,” he summarized, which could lead to on a stagnant and unused bitcoin.
Hayes also expressed concern about the potential control that large entities like BlackRock could exert over the Bitcoin network through mining, in which they are already largely involved through stakes in specialized companies, which could lead to a centralization of the control within the Bitcoin network.
In this regard, he stressed that some improvements that may be necessary for bitcoin to remain a “rock-solid crypto monetary asset” – particularly with regard to encryption and confidentiality – will not necessarily be aligned with financial institutions. traditional.
Remember that with sufficient mining power, an entity could potentially influence the consensus and decision-making processes of the Bitcoin network.