BitMEX CEO Claims The Future Of Trading Will Be All Day Every Day 24/7 Asset Exchanging
BitMEX CEO Claims 24/7 Asset Trading Is The Way Of The Future
BitMEX CEO and co-founder Arthur Hayes was recently asked about the future of crypto on a podcast. Hayes claims that the 24/7 trading we see in the crypto world could soon reach conventional asset markets as well.
One of the unusual things about crypto is that cryptoassets are available for trading 24 hours a day, 7 days a week. The markets never close. Crypto is international, and crypto markets don’t need to abide by the business hours in one location.
Meanwhile, traditional stock markets are closed most hours of the day. They’re only open during ordinary business hours – say, 9 to 5 on weekdays. They close on national holidays. They close for the day of a former president’s funeral.
Could this really change in the future? Arthur Hayes certainly thinks so. As reported by CCN.com, Hayes was asked about the future of trading on a recent episode of Laura Shin’s Unchained podcast from the CME Global Leadership Conference in Naples, Florida. Shin asked Hayes and other guests what they thought the future of crypto might look like.
Hayes also told the story of how he got involved in crypto trading. Hayes worked at Citi Bank until May 2013. After leaving the job, he began trading bitcoin for a living. He got into derivatives trading, then eventually co-founded BitMEX in January 2014.
Today, BitMEX is one of the world’s largest cryptocurrency exchanges. The exchange has processed about $1 trillion of trading volume in 2018. BitMEX is particularly known for its bitcoin futures and leveraged trading.
Could Traditional Assets Be Traded 24/7 Like Crypto In The Future?
Hayes believes the 24/7 trading we see in crypto could carry over into traditional markets:
“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.”
Cryptocurrencies May Not Be A New Asset Class
Hayes, meanwhile, doesn’t necessarily see crypto as a new asset class. Later in the podcast, Shin asked her guests whether or not they believe cryptoassets are a new asset class.
Hayes describes how cryptocurrencies should be seen as a “blend” of multiple asset classes. As an example, Hayes stated that Apple’s cash reserves are larger than the entire market cap of the crypto world. Crypto is too small to be considered a true asset class, although this could change as crypto grows over the next decade:
“The jury is out on whether Bitcoin is actually secure over the long run. It’s had a decade, which is pretty good, but it’s still an experiment. So I say the jury is out, but it could be a new way of raising capital and sending value around the world.”
This is a surprising take from the CEO of one of the world’s largest cryptocurrency exchanges. When asked if crypto is a new asset class, it seems likely that most people would say “yes”. Hayes, however, presents a more nuanced opinion while also reminding us just how small crypto is compared to the money in traditional asset classes.
For comparison, Apple’s cash reserves were sitting at $285.1 billion in the quarter that ended in December 2017. They now have an estimated $237.1 billion as of November 2018. Any way you look at it, however, Apple’s cash hoard is significantly larger than today’s cryptocurrency market cap of $113.8 billion.
Is 24/7 Trading A Good Or Bad Thing?
24/7 trading could be good for the international movement of money. No longer would you be restricted by the hours in your home country’s stock markets.
Of course, there are also some significant downsides to 24/7 trading. It would mean trading firms would have to have staff available 24 hours a day, 7 days a week. Companies that would normally release financial statements after markets close would have to release them during active trading sessions. It would change the way we trade everything.
We’ve already seen crypto revolutionize the world of finance. Could crypto revolutionize conventional stock markets next?