Here Is Why Michael Saylor Says Ethereum Is “Obviously A Security” Asset
Here is why Michael Saylor says Ethereum is “obviously a security” asset. MicroStrategy CEO, Michael Saylor, who is often known for being an extremely bullish investor of Bitcoin, made a comment on a number of other cryptocurrencies in a recent interview.
Saylor’s Statements About ETHREUM
In the interview done with Altcoin Daily, Saylor was questioned on his opinions of both Bitcoin and Ethereum as well as the fact that they are classified as commodities by a few United States Senators along with figures from the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
MicroStrategy CEO Michael Saylor at the Bitcoin 2021 Convention in June 2021.Joe Raedle/Getty Images
To this, Saylor replied: “I think Ethereum’s a security, I think it’s pretty obvious it’s a security. It was issued via an ICO, there’s a management team, there was a pre mine, there’s continual hard forks [Ethereum Classic and others], there’s a difficulty bomb that keeps getting pushed back.
The difficulty bomb is going to wipe out the entire ETH mining industry, it’s going to obliterate it.“
According to Saylor, for a digital asset to be classified as a commodity, it needs to 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 said.
Commodity vs Security
Securities are generally understood as fungible and tradable financial instruments that are used to raise capital in public or private markets. While commodities are seen as goods or assets that have a monetary utility.
Michael Saylor has long being famous for being a Bitcoin maximalist with his stance that Bitcoin is the “only true commodity” cryptocurrency.
After being asked about his opinions on other altcoins like Cardano (ADA), Saylor again denounced them. He noted that one of the major reasons he favors BTC over all the other cryptocurrencies is because he views altcoins as ‘non-compliant security tokens’ that could get regulated out of existence in the future.
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