Bitmex CEO Arthur Hayes Crypto Millionaire Explains How He Created A Multi Million Dollar Company



let's bring in Arthur Hays the co-founder and CEO of bit max the Bitcoin Mercantile Exchange which is the largest crypto trading exchange by volume so just a little bit of background I'm the CEO of bit Mex we're the largest trading platform in the world for Bitcoin and other cryptocurrencies I'm a volatility trader at the end of the day we make our money if it's volatile if it goes up to go down if you have you know Bill Gates calling it a fraud or this we're harvesting babies like great it means short it I don't care [Applause] a few moments later bit mix their ability to make money during a bear market has really served a lot of people money so today I wanted to focus on bit mix and to be specific I really wanted to like get in the brains of Alfa Hayes who happens to be the CEO of bit mix we're really going to dive deep and just get to understand exactly what was going through his mind when he created bit mix so this is the come back to this a little bit but first I'll take a look tell you about myself and how I got to this particular time I arrived in Hong Kong about seven years ago I'm a PR and I started working for Deutsche Bank here in Hong Kong I was in exchange-traded fund market-maker on the Hong Kong and Singapore Stock Exchange I work for DB for about three years and then was lucky enough to get hired over into Citibank to do the same thing so I did index arbitrage on different equity markets across Asia and also ran all of the ETF trading for Citibank and then in 2013 I got fired and I you know it was like oh great I have time on my hands to do something different I always wanted to start my own business I had no idea what that business would be and so I just started looking around and all the interesting things that I didn't have time to look at while I was working at the bank and I came across Bitcoin and if you remember in April 2013 the price went from about I think three dollars to two hundred and fifty dollars in the first quarter of 2013 and I remember reading about Bitcoin on some financial blogs and I came back to there all this is really interesting so I read the white paper by Satoshi Nakamoto person persons who created the protocol and I thought this is this is really cool I want to get involved and I started doing research on how can I actually trade this digital token so I researched all the largest exchanges at the time you might have heard of empty docks which is the famous Japanese exchange that blew up with you know half a billion dollars of customer money and I was like okay I can trigger an empty docks what about how do you short Bitcoin how do you trade on leverage how do you trade futures contracts all the types of things that I was used to trading while I was at the bank I was searching for them in Bitcoin and it happened upon this super shady Russian exchange run by two dudes you had no idea who they were there was an email address and a piece of HTML website that you could trade futures on for Bitcoin US dollars I was like awesome I'm training here so I went to the bank and I had to make a decision where am i sudden my first you know couple dollars to trade Bitcoin there was mt.gox and they had a big account in Japan and there was another exchange called bitstamp and they had a data bank account in Slovenia I thought Slovenian sounded more dodgy than Japan so I sent my money to Japan so I sent some money to Bob Cox I buy my first Bitcoin and then at the time there is this futures exchange had a futures contract that treated at a two hundred percent per annum return which means that I could buy Bitcoin I could deposit some bitcoins margin on this exchange I could sell a futures contract basically locking in the value of Bitcoin and my per annum return on my money was 2x so wow this is this is amazing so I put this trade on and I kept rolling my position and I you know I forgot about Bitcoin October comes around and I thought okay maybe I should withdraw some money from this Japanese exchange mt.gox so I put in my withdrawal request and they come in you know a week later I email support I'm like where's my money they're like oh well if you want your money back faster you need to pay us a 5% bit charge to get it back I was like that sounds like but I'd rather have 95 percent of my money than none of my money so I said fine I'll pay the 5% charge I said that they said okay well I'm not gonna wait another two weeks to get your money back at that point I was like this exchange is going down and at that time Bitcoin started rallying quite aggressively and in China you could actually sell Bitcoin at a forty percent premium to which you could buy it for on the international market outside of China so I got on the bus to Shenzhen and with my passport I faked an address and I got to make a cut in China and I opened up two exchange accounts all across China on the major exchanges and I got my money on the mouth box and made 30 percent it was great and I thought this is great business let me just arbitrage between China and the rest of the world so I started doing that for a few months and then I was like okay I want to make a real business out of this Bitcoin thing I know how to trade derivatives the derivatives platform that I was trading on is pretty shitty so let me create a better Wall Street version so I hit up my old contacts an IT at Deutsche Bank and said hey I want to start this futures exchange that you're interested and he was like no but you should talk to my colleague Ben so I said hey Ben I'm I want to start this Bitcoin exchange you want to meet for a drink she said yeah sure so we went to red bar and I pitched him my idea to start a derivatives derivatives platform he's like I'm in and then but he was like well I don't know the first thing about web technology so the okay I'll cover that I reached out to my friends and I you know came actually came to an event at the hive looking for one specific person and he was actually sitting up here giving a talk for anything general assembly on some sort of web dev thing I came up to him afterwards I said I heard that you're into Bitcoin you want to have a meeting and I want to pitch you my idea to start this drew to this platform he said sure I had a coffee with him the next day out in cyberport and I said this is what we want to do he said I'm on board too so the three of us started building bit mechs with the premise that Wall Street was going to flooding the Bitcoin and they're gonna want to trade the same types of products that I was trading at the bank and so everything okay let's do this it took us about 11 months to build our exchange and we wouldn't live in November of 2014 with this very professional Bitcoin product and no one came for the first six months so we're sitting there with an exchange that makes no money we make no money and so he said well we need to reevaluate what we're doing here there are people who offer similar types of products but are focusing on degenerate gamblers aka retail traders in Bitcoin so why don't we do the same but we can do it better so we said okay we're gonna create the most of the world's highest leverage Bitcoin US dollar product and we want to enable anyone who has Bitcoin to trade financial derivatives and so that's where bit max came from where we are today so today we have the world's most leveraged product to trade Bitcoin US dollars you can trade Bitcoin with a hundred times leverage on the most volatile asset in the history of the world it's a lot of fun and so this is our our trading platform we don't take Hong Kong dollars a US dollar is like all right over here but we only take Bitcoin and so to sign up for an account just takes an email address after you sign up you're presented with a Bitcoin deposit address within ten minutes you're able to trade we currently offer products on Bitcoin US dollar aetherium which is one of the deciduous application that Orillia was talking about very exciting we have a product on the Chinese stock market you could speculate on the Chinese stock market with Bitcoin on bit mechs and factum which is a another digital currency and so from August of 2015 until today we went from trading nothing to our I think our highest volume day was around 25 or 30 million US dollars that went through the exchange at one 24-hour period and now we're one of the top ten fifteen exchanges in the world by volume for the trading of Bitcoin but we're not truly about just trading the Bitcoin US dollar exchange rate because that's only one asset you can't survive as an exchange trading one thing and our complete thesis is that if you have Bitcoin we can offer you the ability to access any type of financial product because we can financially engineer the payoff of anything as long as the long side and the short side all come to the table with the same type of collateral which is Bitcoin and Bitcoin is great because we can take deposits 24/7 and we can get your money back any day of the week unlike lots of trading platforms there's offer you know operate in a you know five days a week nine to five sort of regime so this is the current bit Mets platform yeah I think that's uh and we recently won the Tekken Asia conference first prize in Singapore last week so it's going well for us and people are really getting attracted to the idea of you know trading other financial assets at a much lower cost using a digital currency that's bit nice we can touch up thighs

9 thoughts on “Bitmex CEO Arthur Hayes Crypto Millionaire Explains How He Created A Multi Million Dollar Company”

  1. pretty swish camera angles there and I like seeing those high rise flats too, bigger and badder than on the mean streets of london

  2. This moron states that bitcoin is going to 50k, then he says it will drop to 2k! Which one is it Arthur? Bitmex is a cancer to the bitcoin world! A former, fucking banker! Enough said.

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