BitMEX founder Arthur Hayes says Ethereum rivals face major fundamental challenges amid crypto winter
Crypto veteran Arthur Hayes says tier-1 Ethereum (ETH) rivals saw their first major test last bull run and face another test amid the crypto market collapse.
In a new interview with Real Vision’s Raoul Pal, Hayes says that while Ethereum competitors may have been able to demonstrate their technical prowess, they now need to show that they can attract and maintain users.
“The question now is, okay, well, you’ve announced this very, very fast transaction speed. Great. Show me the applications that are being used by at least somebody doing things. That’s the question right now is you have to have users who are willing to to spend real money and not just receive inflated tokens.I think that is the question that all investors, me too, just looking at new projects and [saying] “Okay, show me the users. Show me someone willing to pay real money to use your service.’ I think that’s where we are now.”
The BitMEX co-founder says that in the next bull run, he’s going to look at cryptoassets that he believes have a good chance of at least surviving and maintaining a presence in the markets rather than disappearing into obscurity.
“I guess you’re using survivorship bias. Okay, if I look at a top 20 market cap and it’s down 95%, will it survive the next cycle? Will it survive the next two years? How much money did they raise? If the answer is yes, buy it. worst case it goes down to zero. best case it goes up 10x, 20x.
If it went from 100 to one and it goes from one to 10, that’s a 10x. Still nowhere near where it was, but I’m just playing the return. And so you know that on the decline of crypto when the next cycle begins, everything that fell the most will rise the most just by the dependence of how returns work. So yeah, I guess this doesn’t change in most of these things. Most of them will fail, you don’t really care, it’s really just a numbers game.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/TigerArt/noreefly
