“The BTC Financial Revolution Is Here! Prices Will Soar Dramatically” – Arthur Hayes #Finance

well I think at the end of the day decentralization is key we ran a centralized company um and that comes to certain risks especially when you’re in an industry that’s trying to completely upset the way things are done and so yeah we were a centralized company there’s laws

we broke them and we suffer the consequences um it’s one of the reasons why I love to centralize protocols is because you’re able sort of to take the human element out of it take the Arthur hay or the CZ the sand bakman freed away and it’s literally just about do I serve customers

do I have good technology is it transparent and open and all these sorts of things rather than you know running having these company specific issues these people specific issues a thrilling Bitcoin Bull Run is on the horizon and it’s about far more than just Rising prices it’s the start

of a financial revolution blockchain technology is fundamentally reshaping how we think about money moving toward a world where Finance is secure accessible and most importantly controlled by

the people few understand this transformation better than Arthur Hayes co-founder of bitmex who was dedicated his career to building a decentralized financial system for Hayes this journey began with a deep distrust of traditional color: #1a73e8; text-decoration: none;">Finance sparked by the 2008 financial crisis as he watched giants like Leman Brothers collapse and Deutsche bank’s Balance Sheets unravel Hayes saw the risks and fragility of centralized control now with with Bitcoin primed for a

major Bull Run Hay’s Journey stands as a powerful Testament to the disruptive force of decentralized Finance this isn’t just another Market rally it’s the beginning of a

financial Revolution that’s here to stay with traditional Finance on notice let’s watch clips from Arthur Hayes’s interview for deeper insights please like subscribe and

turn on notifications for exclusive content thanks for joining us again enjoy the CashNews.co no so I was one of the founders of the um Hong Kong Bitcoin Association and it was just all types of people with text-decoration: none;">Finance developers um just meeting in a bar in Hong Kong talking about Bitcoin and Crypto back in the day um obviously it’s you know a lot bigger organization

now but that sort of like spoke to me because I did have this distrust of um the financial system having lived you know the first day on the desk was liia went bankrupt in 2008 and Deutsche Bank was one of the few banks that didn’t take a government bailout uh however deut B lied about his

entire Balance Sheet that’s why didn’t take a bailout and obviously one of the worst performing Banks over the insing years contrast that to the American banks with all took government bailouts paid massive bonuses the next year and and following years and so you see

the difference of like Oh I thought this was supposed to be free Markets Capitalism but it’s just another socialist experiment and your your wealth is predicated on how

well you can suck the government tee Genesis of the perpetual Swap and I’d like to tell us to a lot of Founders is that so me Ben and Sam my co-founders we answered every single support ticket ourselves and there’s only there’s only one or two other employees back in May 2016 and

so this takes up a lot of our day answering answering questions from customers but it gives us an insight into what what the problems are with our with our product and we get the similar sort of question a lot which was hey bitmex are you guys scamming me I had this position and on this thing

called an expiry day it disappeared didn’t understand what an expiry was for a Futures Contract oh hey bitmax why does the Futures Contract trade at a much different price in the spot Market is this a scam they didn’t understand interest rate parity and

why a Futures Contract trading in the future to trade a different price than the spot price today so internally we had this dialogue was like we’re getting all this feedback from customers they don’t understand our product they’re slagging us off on the forums of

the internet saying that we’re we’re bad dudes and running this bad platform is there a way that we can create a financial product that looks that mimics Margin Trading has very high leverage um but doesn’t expire and so that was a challenge and so you know we

knocked our heads around and sort of we we came up with uh this this swap concept the first iteration of it we used the the bit finex um Interest Rates and back in sort of you know May June 2016 you know text-decoration: none;">Crypto was I think it was like $300 or $400 whatever it was and it was rapidly appreciating and the Interest Rates weren’t high enough to convince people to come in and sell this this product so we have this massive Divergence in terms of the swap

price versus the underlying spot price so we went back to the drawing board and we came up with this sort of self-correcting mechanism which is the Innovation here really which is looking at the previous premium over the last eight hours and charging that as an interest in the next eight hours uh

and this is the completely new thing called the Perpetual Swap and we roll this out one day we the funding rates you’re talking about right funding rates so we changed the funding calculation and the market hated it there’s a massive um reaction people what the you guys doing we like

Futures contracts just do it like okay coin why you guys trying to be different and you know there’s even people internally who are like at bitx like why let’s just go back to Futures the customers don’t like it and I was very adamant that we have

to do this this is solving a problem that we all recognize let’s stick with it and we stuck with it we kept tweaking things and sort of you know by middle of 2017 we’re like holy this product is actually working um our trading volume is going up we’re seeing a lot more activity on

the platform uh and that’s sort of the Genesis of the Perpetual Swap and sort of the rest is history it’s the most successful Crypto product ever traded the most on every single

exchange and trillions of dollars in notional every year because it solves a problem High leverage no expir it looks just like Margin Trading so the retail Crypto Trader can

understand it intuitively with a bitcoin price rally expected soon Arthur Hayes highlights the vital role of decentralization in disrupting traditional Financial structures reflecting on his past Ventures Hayes recognizes the risks of regulatory interference and Praises Satoshi nakamoto’s

anonymity which protects bitcoin’s Creator and its value from government influence Hayes believes that while not every project requires decentralization those resilient to government shutdowns must prioritize it carefully reaching bitcoin’s level of decentralization is challenging often

proving its strength only Under Pressure Hayes stresses that authenticity is essential for projects claiming decentralization though he acknowledges that not every Venture needs it a strong supporter of decentralized exchanges like Unis Swap and drift Hayes considers whether these platforms could

ever match centralized exchanges however he notes their distinct goals decentralized exchanges focus on price Discovery while centralized exchanges prioritize high performance trading let’s go back to the interview and watch more Clips to gain insights from Arthur Hayes well I think at the

end of the day the centralization is key we ran a centralized company um and that comes to certain risks especially when you’re in an industry that’s trying to completely upset the way things are done and so yeah we were a centralized company there’s laws we broke them and we we

suffer the consequences um it’s one of the reasons why I love to centralize protocols is because you’re able sort of to take the human element out of it take the Arthur Hayes or the CZ the sand bakman freed away and is literally just about do I serve customers do I have good technology

is it transparent and open and all these sorts of things rather than you know running having these company specific issues these people specific issues one of the best things that Satoshi ever did was never be outed as whoever they or he or she was because now don’t attach sort of our opinion

of whether Bitcoin is good or bad to a person and the government can’t go and arrest and put this person in jail for violation of whatever laws they said that Satoshi may or may not have violated it’s it’s depends on what you’re trying to build some projects are predicated

on the centralization if you’re trying to build the next you know social media platform that can’t get shut down by a government Authority like what’s happened to pavle um at telegram decentralization is key you must be decentralized from day one or you know you can land your

private plane and Char to G and get arrested for you know running a platform right or you can be Elon Musk and get your platform banned in in Brazil so I think there’s certain products projects and products that have to be decentralized and there’s certain other things that I guess

using sort of the really Secure Public blockchain to build a centralized product which is fine it just depends on what you’re trying to do be very clear about that don’t try to be decentralized you don’t need to be and if you’re running a a social media platform and

you’re trying to do decentralization then you might suffer some consequences do you believe that we’re going to get to that point where these decentralized networks are are resistant to well I mean most of them AR that’s that’s the thing and we find that not only in times of

of extreme stress we find okay well actually that thing you said in the white paper is not true because you were compromised in this particular fashion so if you are going to be if decentralization is key to your business model then you have to be all the way decentralized as if you were Bitcoin

that’s the standard it’s very very difficult it’s very very hard to do that it takes a long time which is why your incentive mechanisms need to be very aligned with the actual people using it it’s not like you know you do a massive Ico you hand a bunch of tokens out and then

think they’re going to get decentralized like it’s a slow process it’s not overnight and so again not everything needs to be decentralized is the thing most people think a lot of things need to be when they don’t need to be but then the things that actually need to be

decentralized people need to be honing in and making sure okay does this actually make make sense and what they’re claiming they’re supposed to be doing do you have a favorite decentralized exchange well I am an advisor uh of drift so I have to I I I’d be remiss in not saying that

I think the the team at drift has built a very very um compelling product especially in the derivative space I have to say that you know Unis swap which I don’t own any uh uni token I think Hayden has done an extremely amazing job some do you think we’re gonna you know dex’s um

will get to the same sort of you know uh quality that is available on centralized exchanges I don’t know we’ll see it again what’s your use case right do we does the Dex need to be as high performance so that you know Ken Griffin can go and rip off retail customers like he does uh

in the traditional Markets because of the latency aspects or is it hey I just want to have price Discovery such that anyone with an internet connection can connect with other people and trade

things free from um anyone sort of impeding on their ability to to do so so it depends on the goals I don’t know if you’re going to have sort of a high high frequency trading shop being able to run the same strategies on defi maybe that’s not something that we want to have happen

and if you want to run that stuff stay over there uh in in the tradire world we have a different sort of reason why we’re building these protocols Arthur Hayes’s insights on decentralization offer a valuable perspective as bitcoin’s next rally draws near the introduction of spot

Bitcoin ETF in January 2024 triggered massive growth in the market with net inflows now surpassing $24 billion and October alone seeing a remarkable $5.4 billion Hayes has consistently underscored the power of decentralization to Shield Assets like Bitcoin from regulatory

interference a point that resonates as traditional Financial products such as ETFs Drive wider Bitcoin adoption moreover Hayes praised Satoshi nakamoto’s anonymity for safeguarding

bitcoin’s Value from government meddling noting that while not every project requires decentralization it’s essential for those that can resist shutdowns with regulatory Clarity becoming a focal point in the upcoming US presidential election both leading candidates Donald Trump and

kamla Harris are advocating for more transparent digital asset Frameworks this shift which aligns with Hayes’s views on financial autonomy has further boosted Market confidence adding to the bullish Outlook technical indicators like the golden cross on October 27th have signaled a strong

upward Trend hay remains a supporter of decentralized exchanges such as Unis Swap and drift noting that while decentralized and centralized exchanges serve different purposes price Discovery versus high performance trading The increased interest in Bitcoin only strengthens the push for

decentralized resilient Financial systems Lee also emphasized IES the possibility of forthcoming economic developments influencing bitcoin’s growth during November the Federal Reserve interest rate decision on November 7th is especially critical a 25 basis point drop might boost Market

Liquidity boosting Cryptocurrency Assets according to Lee a rate drop might dampen the present climb in the US dollar Index and Treasury

Yields enhancing overall macroeconomic Liquidity and potentially boosting Crypto asset prices other interesting measures include cme’s BTC open interest

reaching an all-time high showing strong demand for Bitcoin Futures sustained inflows into Bitcoin ETFs combined with a potential Microsoft BTC acquisition might provide more

support Lee predicts that bitcoin’s price will range between $66,000 and $75,000 in November with Market volatility remaining strong do you believe decentralized Finance def will

eventually surpass traditional Finance in terms of adoption and usage or will they coexist as complimentary systems please drop your thoughts in the comments below share this CashNews.co and

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