This exec believes ‘it’s pretty obvious’ Ethereum is a security
Michael Saylor, CEO of MicroStrategy and a supporter of Bitcoin (BTC), has reiterated his claim that BTC is the only commodity in the cryptocurrency market. In fact, he ruffled some feathers by claiming that Ether (ETH) is “clearly” a security.
The exec made these comments when he wasquestioned in an interview recently. He was asked for his opinion on the classification of both BTC and ETH as commodities. In doing so, Saylor gave a thorough explanation of what he saw to be the key distinctions between the Bitcoin and Ethereum networks. According to Saylor, only the former has stayed constant throughout 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 stated that it is a security because it requires ongoing software upgrades on a network that is controlled by a group or other organization. He touched upon the long-delayed difficulty bomb’s design, which he claimed will ‘kill’ the whole ETH mining business as an illustration.
According to him, Ethereum’s difficulty bomb serves as evidence that the asset is a security and is continually delayed every six months.
Saylor also thinks that one of Ethereum’s issues with regard to securities legislation is its potential to evolve. In fact, Saylor is of the opinion that people prefer an immutable decentralized protocol like Bitcoin.
Saylor also acknowledged that securities have their purposes. However, “full and reasonable disclosures” concerning these tokens are required, he added.
As the central component of the Bitcoin network cannot be changed, like the physical
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