BitMEX co-founder becomes Bitcoin billionaire – volatility is king

Ben Delo, co-founder of the BitMEX crypto trading platform, was the first Bitcoin billionaire and the youngest self-made billionaire in the UK to be unveiled. BitMEX*, a Hong Kong-based crypto-trading exchange, was launched in 2014. It offers up to 100x leverage trading and trading in Bitcoin derivatives and is particularly popular with traders.

The path of the Bitcoin Trader billionaire

Delo, 34, was born in Sheffield, England, the oldest of four children. As a child, he struggled to behave in class, which led to teachers asking him to leave three primary schools. At 16, he wrote that he wanted to become a Bitcoin Trader. Despite his early difficulties, he took the first steps towards his goal and earned a place at Oxford where he studied mathematics and computer science.

After graduating, Ben worked as a software engineer for IBM and a stock brokerage firm before moving to Hong Kong to work for JP Morgan. It was in Hong Kong that he first met the other two BitMEX co-founders, Arthur Hayes and Samuel Reed.

The beginnings were a challenging time, recalls the British billionaire. For four years he and his team had worked 18 hours a day. To save money, Delo also rented a large part of its living space to AirBnB users.

The Sunday Times reports that the co-founders together have hundreds of millions in their bank accounts, with the rest of their “billionaire status” tied to the Bitmex platform and crypto asset valuation.

Ethereum code is king

While 2018 has not been a good year for Bitcoin’s value, it has been a very successful Ethereum code review for BitMEX. In an interview with CNBC, Arthur Hayes, CEO of BitMEX said:

“We have a good volume of up days and even better volume of aggressive down days. In 2018, we tripled what we did in 2017,” he said.

He also commented that volatility decreases with price and warned that lower volatility is ultimately bad for Bitcoin. Volatility is what makes Bitcoin skyrocket. While 2013-2015 saw a decline of over 80 percent from $1200 to $200, volatility allowed Bitcoin to grow from $200 to $20,000 between 2015 and 2017. With a more mature market, he believes that the time span between aggressive bull and bear markets is getting shorter and shorter.

“I think that something that goes up to $20,000 in a year can have a correction up to about $6,000…we can reach a bottom in the $3,000 to $5,000 range, but we’re just a positive regulatory decision away, maybe a SEC-approved ETF to reach the $20,000 and even the $50,000 by the end of 2018.”

Since there have been many positive contributions to Bitcoin lately, such as that the way is paved for traditional investors through Coinbase Custody. This could lead to the long-awaited wave of capital in the future and boost the market. It seems that the infrastructure will continue to improve so that Bitcoin ETFs can be expected in the near future.