The BTC bull Michael Saylor argued that ETH is security and was issued via an ICO with the network having fundamental changes in the past years so let’s read more today in our latest Ethereum news.
The BTC bull Michael Saylor said that Ethereum is obviously a security and doubled down on labeling BTC as the only commodity in the crypto space. Saylor was questioned on his take about the classification of both BTC and ETH as commodities by the US Senators like Cynthia Lummis and Kristen Gillibrand alongside other figureheads from the US SEC and the CFTC. Saylor gave a lengthy explanation of what he thinks are the biggest differences between the BTC and ETH networks while suggesting that only the former remained unchanged:
“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 need for software upgrades on the network driven by a team of entities represents an indication that ETH is secure. He noted that the design and the delays of the difficulty bomb will likely murder the entire ETH mining industry. Saylor thinks that for a digital asset to be classified as a commodity it will have to be backed by a decentralized protocol where nobody can change it even if they wanted:
“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.”
Securities and understood as fungible and tradeable financial instruments that are used to raise capital in public but also private markets. While commodities are seen as goods or assets that have monetary utility, assets such as gold and silver are seen as hard commodities.
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Saylor reiterated that BTC is a commodity with the core of the BTC network not being able to change:
“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, the BTC network saw multiple network upgrades in the years and the most notable one was the Taproot soft fork from 2021 that aimed to improve BTC’s scripting capabilities and privacy. When asked about his thoughts on other altcoins like Cardano, Saylor said:
“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 not they don’t allow them to continue.”
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