Michael Saylor, CEO of MicroStrategy and Bitcoin (BTC) Revolutions, said that Ethereum (ETH) is an “obvious” guarantee as it doubled BTC’s rating as the only commodity in the crypto sector.
In an interview with Altcoin Daily, Saylor was questioned about his opinion regarding the classification of both BTC and ETH as commodities by US Senators such as Kirsten Gillibrand and Cynthia Lummis, along with figures from the Securities and Exchange Commission (SEC) and commodity futures. Trading Commission (CFTC).
Saylor gave a long glimpse into the fundamental differences between the Bitcoin and Ethereum networks, suggesting that only the former hasn’t changed over the years:
“I think Ethereum is a security, and I think it’s very clear, […] it was released by an ICO, there’s a management team, there’s been a pre-mine, there’s a hard fork, there are hard forks going on, and there’s a hard fork that keeps getting pushed.” .
The CEO argued that the constant need for software upgrades on a network led by a team or entity is an indication that ETH is security. He cited the long-awaited hard-bomb design that he said would kill the entire ETH mining industry as examples.
According to Saylor, for a digital asset to be classified as a commodity, it must be backed by “a completely decentralized protocol where no one can change it even if they want to.”
“For it to be a commodity, there can be no issuer, and the truth is you can’t really make decisions. I mean, one of the basic ideas in the cryptocurrency industry is that the fact that you can change it, is what makes it safe.”
Securities are generally understood as exchangeable and tradable financial instruments used to raise capital in the public or private markets. Whereas, commodities are viewed as commodities or assets that have monetary interest. Assets like gold and silver are viewed as hard commodities, while soft commodities are commodities like rice or tea.
Saylor reiterates that BTC is a commodity because the core of the Bitcoin network cannot be changed, just like the physical makeup of gold:
“If you want to prove yourself as a digital good, you try to create something like gold in cyberspace.”
Despite Saylor’s arguments, the Bitcoin network has seen multiple network upgrades over the years. Most notable in recent history was the Taproot soft fork as of November 2021, which was intended to improve Bitcoin’s scripting capabilities and privacy.
When asked about his thoughts on other altcoins like the original ADA token for Cardano, Saylor once again reiterated his extreme sentiments, saying:
“I think all Proof of Stake networks are securities and they are all risky […] It’s above my salary, the regulators will decide whether to let them continue or not. t let them continue.”
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MicroStrategy went on to note that one of the main reasons he prefers BTC over all other crypto assets is that he is concerned that altcoins are incompatible security tokens that can be regulated out of existence.
MicroStrategy at Saylor has continued to hoard BTC despite the asset’s decline in 2022, and as of June 29, the company held 129,699 BTC, worth about $3.98 billion at the time.