MicroStrategy CEO and Bitcoin (BTC) bull Michael Saylor stated that Ethereum (ETH) is ‘obviously’ a security as he doubled down on labeling BTC as the one commodity within the crypto sector.
In an interview with Altcoin Daily, Saylor was questioned on his take relating to the classification of each BTC and ETH as commodities by U.S. Senators similar to Kirsten Gillibrand and Cynthia Lummis, together with figureheads from the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
Saylor offered a prolonged run down on what he thou are the elemental variations between the Bitcoin and Ethereum networks, as he prompt that solely the previous has remained unchanged over time:
“I think Ethereum is a security, I think it’s pretty obvious, […] it was issued by an ICO, theres a management team, there was a pre-mine, there’s a hard fork, there’s continual hard forks, there’s a difficulty bomb that keeps getting pushed back.”
The CEO argued that the fixed want for software program upgrades on a community pushed by a staff or entity represents an indicator that ETH is a security. He pointed to the design of the long-delayed problem bomb, which he stated will “murder” your entire ETH mining trade as examples of such.
According to Saylor, for a digital asset to be labeled as a commodity, it must be backed by a “completely decentralized protocol where nobody can change it even if they wanted to change it.”
“For it to be a commodity there can’t be an issuer, and the truth is you can’t really make decisions. I mean one of the fundamental insights in the crypto industry is that the fact that you can change it, is what makes it a security,” he stated.
Securities are typically understood as fungible and tradable monetary devices which are used to boost capital in public or non-public markets. While commodities are seen as items or property which have a financial utility. Assets like gold and silver are seen as laborious commodities, whereas tender commodities are items similar to rice or tea.
Saylor reiterated that BTC is a commodity because the core of the Bitcoin community can’t be altered, very like the bodily make-up of gold:
“If you want to establish yourself as a digital commodity, then you’re trying to create something like gold in cyberspace.”
Despite Saylor’s arguments, nevertheless, the Bitcoin community has seen a number of community upgrades over time. The most notable one in current historical past was the Taproot tender fork from November 2021, which aimed to enhance Bitcoin’s scripting capabilities and privateness.
Asked about his ideas on different altcoins similar to Cardano’s native token ADA, Saylor as soon as once more echoed his maximalist sentiments, stating:
“I think all of the proof-of-stake networks are securities and they’re all very risky […] it’s above my pay grade, the regulators will decide whether or not they allow them to continue or nor noth they don’t allow them to continue.”
Related: Bitcoin ‘low cost’ at $20K as BTC value to pockets ratio mimics 2013
The MicroStrategy went on to notice that one of many main causes he favors BTC over all different crypto property is that he holds considerations over altcoins being non-compliant security tokens that would get regulated out of existence.
Saylor’s MicroStrategy has continued to snap up BTC regardless of the tanking worth of the asset in 2022, and as of June 29, the agency held 129,699 BTC price round $3.98 billion on the time.