Bitcoin bull Michael Saylor believes that Ethereum is a security, adding that Bitcoin is the only commodity in the crypto market. Saylor is a strong Bitcoin supporter, and through his company, MicroStrategy, he has bought billions of dollars worth of Bitcoin.
Michael Saylor says Ethereum is a security
In a recent interview with Altcoin Daily, Saylor was asked about his views on how Bitcoin and Ethereum were categorized under the recent crypto bill tabled by US Senators Kirsten Gillibrand and Cynthia Lummis. He was also questioned on the views of the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on which cryptocurrencies are commodities.
Saylor provided a lengthy outline of the key differences between Bitcoin and Ethereum. He noted that Bitcoin had remained the same over the years. He also noted that Ethereum was released into the market through an initial coin offering (ICO) and had a management team and hard forks that made it more of a security.
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He added that ETH was a security because of the regular software upgrades and the teams and entities behind the token. He further attacked Ethereum’s transition to proof-of-stake, saying that the difficulty bomb would kill the Ethereum mining sector.
Saylor also outlined the features that categorized a digital asset as a commodity. He noted that such a product needed to be fully backed by a decentralized system that cannot be altered. He added that a commodity was not issued and had no one making decisions on its behalf. The fact that Ethereum can be changed is what made it a security, Saylor said.
Saylor as a Bitcoin maximalist
Saylor further said that he believed that Bitcoin was a commodity because it could not be changed. However, it is important to note that Bitcoin has undergone several software upgrades. The recent upgrade known as the Taproot soft fork happened in November last year to boost Bitcoin’s privacy and scripting abilities.
Saylor’s criticism was not just on Ethereum but on all cryptocurrencies that used proof-of-stake concepts, saying they were securities. He also said that his portfolio was only made up of Bitcoin because he was concerned about the regulatory status of altcoins.
Saylor is a heavy investor in Bitcoin. The Bitcoin bull has continued to buy more coins despite the decli9ning value of the coin this year. MicroStrategy had 129,699 BTC valued at $3.98 billion as of June 29.
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