• BitMEX founder Arthur Hayes claims that legacy financial institutions are trying to take control of the Bitcoin and crypto industry.
• Hayes believes banks and asset managers are attempting to offer crypto exchange-traded funds (ETFs) in order to make a profit from the unfavorable banking regulations.
• He also suggests that BlackRock, the largest asset manager in the world, may attempt to corner much of Bitcoin’s consensus network as well as the mining industry.
BitMEX Founder Claims TradFi is Taking Over Crypto Industry
BitMEX founder Arthur Hayes has suggested that traditional finance giants (TradFi) are planning a takeover of the Bitcoin (BTC) and cryptocurrency industries. According to Hayes, there is now a battle for who “owns” crypto after many firms have died off due to unfavorable banking regulations. He believes banks and asset managers will offer crypto exchange-traded funds (ETFs) in order to make a profit from these regulations by becoming gatekeepers for their multi-trillion dollar deposit bases.
BlackRock Could Corner Bitcoin’s Consensus Network
Hayes further suggests that BlackRock, the world’s largest asset manager, may attempt to corner much of Bitcoin’s consensus network as well as its mining industry. He questions whether we can retain Satoshi’s ethos when such large amounts of money are parked in financial products within the fiat system controlled by banks and regulators. If this were to happen, it could have an impact on proposed improvements such as increased privacy or censorship-resistance which would be counterintuitive with BlackRock’s goal of centralizing assets under their management.
Banks Could Restrict Redemptions
The BitMEX founder also warns that banks and regulators could agree on restrictions concerning redemptions from crypto investments which could trap investors within the corporate banking architecture. This could mean investors having to convert any returns into fiat currency every time they wish to withdraw or transfer them, leading them away from cryptocurrencies entirely.
Crypto Assets at Risk From Fiat Summer Takeover?
Hayes postulates that if cryptocurrency can have more monetary systemic impact than Eurodollar markets then traditional finance might be able recoup their losses due their current unfavorable conditions and use it as a way into controlling digital assets too. This type of takeover would pose risks not just for individual users but also for companies involved in cryptocurrency who may find themselves unable or unwilling comply with new restrictions enforced by these giant corporations potentially limiting innovation or adoption rates altogether .
Conclusion: Who Owns Crypto?
Ultimately, Hayes warns us about who owns cryptocurrency moving forward – does it stay with individuals looking for freedom from oppressive systems or do legacy financial institutions take control? This is what he believes is truly at stake here – will we see decentralization continue through open source software development or will it become centralized through corporate control? Only time will tell how this plays out over ensuing decades as cryptocurrency becomes increasingly popular around the world.