Cryptocurrency

Bitcoin Billionaire Michael Saylor Labels Ethereum an 'Obvious' Security

Partially due to it being released through an ICO and having a company makeup.

Cryptocurrency

Bitcoin Billionaire Michael Saylor Labels Ethereum an 'Obvious' Security

Partially due to it being released through an ICO and having a company makeup.

In an interview with Altcoin Daily Bitcoin billionaire and CEO of MicroStrategy Michael Saylor shared his thoughts on Ethereum in regards to its asset classification — calling it an “obvious” security.

Saylor based his opinion on the fact that the cryptocurrency has a management team, was issued by an initial coin offering (ICO), has continual Hard Forks in which the makeup of the crypto changes, and mentions the looming difficulty bomb that will inevitably see ETH mining come to an end.

“The difficulty bomb is going to wipe out the entire ETH mining industry. It’s going to obliterate it, murder it,” said Saylor, adding that “the fact that somebody is able to murder an entire industry — is indicia that it is a security and not a commodity”

In terms of commodities, Saylor recently showed support for SEC Chair Gary Gensler’s statement, in which he said Bitcoin is the only cryptocurrency he would publicly label a commodity. Saylor, known for being a BTC maximalist tweeted his interpretation of the statement in that “Bitcoin is the only investment-grade cryptocurrency.”

For any cryptocurrency to be a commodity Saylor said it can not have an issuer, no board of decision-makers, and no changing the assets fundamentals — otherwise, it is a security.

“If you want to establish yourself as a digital commodity, then you’re trying to create something like gold in digital cyberspace,” said Saylor.

The CEO then gave an example that no gold miners in the world could change the physical characteristics of gold and that an email would never go out saying that gold is now steel or that steal is now aluminum.

“If you can change the characteristics of it — then it is not a commodity, it is a security,” concluded Saylor.

Despite Bitcoin being down with the overall market, Saylor’s conviction has remained and is shown in a recent acquisition of BTC just weeks ago by his company MicroStrategy. The purchase was made up of nearly 130,000 BTC and cost roughly $10 million USD.

In a recent position update, Saylor tweeted that in August of 2020, MicroStrategy began its Bitcoin Strategy, acquiring 21,454 bitcoins at an aggregate purchase price of $250 million. He then went on to share the following asset comparisons, BTC in that time is up 83%, MicroStrategy stock up 79%, S&P up 16%, Gold down 14%, and Silver down 33%.

In other news, A DAO forms with hopes of purchasing an $8 million USD Dinosaur.

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