BitMEX co-founder Arthur Hayes has issued a stark warning about the future of cryptocurrencies, suggesting that 99% of them are likely to fail. Hayes referenced research indicating that only 3.44% of U.S. stocks since 1926 have generated all net shareholder wealth, while more than half have underperformed or lost money compared to Treasury bills.
The analysis, conducted by Professor Hendrik Bessembinder, highlights a significant concentration of wealth, with the top 1.88% of firms accounting for 90% of market gains. Hayes draws a parallel between the stock and crypto markets, suggesting that both follow power law dynamics, where a small number of assets achieve significant success.
Arthur Hayes Warns 99% of Cryptocurrencies May Fail, Citing Stock Market Data
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