CEO of notable cryptocurrency exchange, BitMEX, Arthur Hayes, has shared his views on the future of blockchain technology and crypto assets and in a recent podcast.
Bitcoin to Set Pace for Other Trades
According to Arthur Hayes, cryptocurrency trading offers a lot of side benefits and proves itself a solution to unanswered problems in the finance sector, and other trades might just be looking to take positives from the crypto model.
The fact that cryptocurrency trading went on non-stop throughout the day without pause was one of the major factors that intrigued Arthur Hayes when he first got involved in the business in 2013.
The young CEO had just lost his job as a market-maker for Citibank when he got into cryptocurrency trades for a living. In a detailed reply to Laura’s Shin question on the Unchained podcast, he recalled his initial love interest with Bitcoin:
“What really struck me about Bitcoin and the world of crypto assets was that for the first time, you basically have access for people who otherwise wouldn’t interact with financial markets. […] I think 24/7 trading of all different types of assets is something that’s going to be the future, and that will bleed into other markets we’re all familiar with, you know, FX, fixed income, and equities.”
His answer would come as a reply to Shin’s question to her guest on the future of blockchain technology, but Hayes chose instead to give an interesting biographical reply, talking about the early days he got involved in digital assets trades.
The young entrepreneur, after losing his job, turned to the 24-hour trades of BTC and would launch his own cryptocurrency exchange eight months after, in November 2014. Bitmex offering of up to 1:100 leverage trades, has contributed to the rise of the cryptocurrency exchange and has secured its relevance. Even in the dragging bear period in the cryptocurrency, the exchange has been one of the few to see an upturn in revenue.
Is Bitcoin a New Asset Class?
Laura Shin raised this question to Hayes and other guests, suggesting whether digital currencies such as Bitcoin, Ethereum and other digital assets could be considered an asset class. Hayes says the answer would be a “blend” instead. Digital assets were still too small to be regarded as a ‘bona fide asset class’ yet, according to Hayes. He cited Apple’s cash reserve—which is presently bigger than the whole crypto market capitalization—as a perfect illustration of his point.
Cryptocurrencies have existed for about a decade, and are still considered an experiment; Hayes believes the next decade should see digital assets finally fit enough to be legalized as an asset class.