MicroStrategy CEO Michael Saylor, a Bitcoin (BTC), bull, stated that Ethereum (ETH) was ‘obviously” a security. He doubled down on declaring BTC the only commodity in crypto.
Altcoin Daily interviewed Saylor about his views on the U.S. classification of ETH and BTC as commodities. Senators Kirsten Gillibrand and Cynthia Lummis were questioned by Altcoin Daily about their views on the classification of BTC and ETH as commodities by the U.S.
Saylor gave a detailed explanation of the differences between Bitcoin and Ethereum networks. He suggested that only the former has changed over time.
“I believe Ethereum is a security. I think it’s quite obvious […] it was issue by an ICO, there was a management team, there were a pre-mine. There’s a hardfork, there are continual hardforks, and there’s a difficulty bomb which keeps getting pushed back.”
CEO argued that constant software updates on a network controlled by a group or entity is a sign that ETH is a security risk. As an example, he cited the delayed difficulty bomb design that he claimed would “murder” the entire ETH mining sector.
Saylor says that in order for digital assets to be considered a commodity, they must be supported by a “completely uncentralized protocol so that nobody can alter it, even if they wanted.”
“To make it a commodity, there must be an issuer. The truth is that you don’t have the ability to make decisions. He said that one of the most fundamental insights in crypto industry is the fact that it can be changed, which makes it a security.
Securities can be described as fungible, tradable financial instruments used to raise capital in the public and private markets. Commodities are goods and assets that have a monetary value. Hard commodities include assets like gold or silver, and soft commodities include goods like rice or tea.
Saylor reiterated that BTC was a commodity because the core of Bitcoin’s network cannot be changed, much like gold’s physical makeup.
“If you want your digital commodity to be established, you can create something like gold online.”
Despite Saylor’s claims, the Bitcoin network has experienced multiple network upgrades throughout the years. Taproot soft fork, which was released in November 2021, was the most prominent. It aimed to increase Bitcoin’s scripting capabilities as well as privacy.
When asked about his views on altcoins like Cardano’s native token ADA (or any other altcoins), Saylor reiterated his maximalist sentiments and stated:
“I believe all proof-of-stake network are securities. They’re all very risky […] they’re above my pay grade. The regulators will decide if they allow them or deny them.”
Related: Bitcoin price to wallet ratio mimics 2013 at $20K – Bitcoin is ‘cheap” at $20K
MicroStrategy stated that BTC is his preferred crypto asset because he has concerns about altcoins not being compliant security tokens and that they could be regulated outright.
Saylor’s MicroStrategy continues to buy BTC despite its declining value in 2022. As of June 29, the firm had 129,699 BTC valued at $3.98 billion.