Arthur Hayes, co-founder and CEO of the BitMEX cryptocurrency derivatives exchange, does not exclude that in the foreseeable future, short-term bitcoin bonds may appear on the platform. The idea itself, however, is not fully worked out and it has yet to bring to mind.
This assumption was made by Hayes in a conversation with a cryptanalyst and trader Luke Martin as part of the Venture Coinist podcast published on Friday, April 12.
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“One of the ideas that I have been studying, while very preliminary, is the possibility of native income generation for Bitcoin holders. Now, if I have Bitcoins and I want to get some kind of income from them, it is extremely difficult. I owe it to someone in an insecure way to lend, while the percentage of no return is very high, ”said Hayes.
One of the foundations of fixed-income markets in the traditional space, the head of BitMEX notes, is that large corporations, which everyone knows and trust, issue commercial short-term securities and, as a rule, receive US dollars for the financial needs of their companies. From an economic and financial point of view, it is more profitable for them to borrow money, rather than use retained earnings.
“The same should happen with cryptocurrencies. I want to create a future in which major exchanges and miners issue short-term bitcoin bonds for the ecosystem. Suppose you want to buy 30-day paper. Why not buy a 30-day BitMEX zero-coupon bond, which gives a certain interest rate that reflects the definition of our credit risk market? ”, Says Arthur Hayes.
According to him, other large companies like Coinbase, Kraken or Bitmain can use the same mechanisms. At the same time, Arthur Hayes is convinced that borrowers are unlikely to want to default the ecosystem and in order to maintain their reputation they will strive to pay for such obligations.
Thus, he says, an almost risk-free percentage curve for Bitcoin is formed, however, there may be more risky borrowers, and then this is the business of companies to choose from having offers.
“Let's say there is a certain speculative project that wants to create something, they need 100 Bitcoins and they pay 20% per annum. It suits me, I agree to that, ” Hayes gives an example.
Such a mechanism, in his opinion, will help create a credit curve for Bitcoin, and people will be able to lend cryptocurrency in a native way and create businesses. And since fiat currencies do not participate in this process, this will be an impetus to the widespread use of Bitcoin and will lead the industry to a new level.
“This is what I now think about, and I hope that in the coming months I will be able to write a kind of white paper or conduct a test transaction to see if there is any interest in this,” said the head of BitMEX.
As BlockchainJournal wrote earlier, during the Venture Coinist podcast, Arthur Hayes also expressed confidence that over the next few years, Bitcoin will reach $ 50,000.
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