Cryptocurrency

MicroStrategy CEO Michael Saylor Explains Why He Believes Ethereum (ETH) Is a Security

Michael Saylor, the founder and CEO of MicroStrategy, has recently explained why he believes Ethereum (ETH), the second-largest cryptocurrency by market cap, is a security.

In a recent interview with Altcoin Daily, Saylor highlighted the reasons why he believes that the native token of the largest smart contracts platform is a security and not a community.

We Are On Twitter: Follow Us

According to the MicroStrategy chief, the difficulty bomb designed to increase the difficulty of mining ETH in order to disincentivize miners will annihilate the Ethereum mining industry.

Michael Saylor noted:

“I think it’s pretty obvious it’s a security. It was issued via an ICO [initial coin launch]. There’s a management team. There was a pre-mine. There’s a hard fork. There are continual hard forks. There’s a difficulty bomb that keeps getting pushed back…”

Read Also: MicroStrategy’s Michael Saylor On Bitcoin (BTC) Price: Now Is the “Ideal Entry Point” for Investors

Saylor then concluded that the feature in the Ethereum blockchain created to delay the difficulty bomb every six months makes ETH a security.

For it to be a commodity, there can’t be an issuer and the truth is you can’t really make decisions. One of the fundamental insights in the crypto industry is the fact that you can change it is what makes it a security. 

If you look at most of these cryptos, where they have hard fork after hard fork after hard fork, the problem with a hard fork is changing the protocol means that some development team is making a decision, and if you can change the protocol in a material way, you can change the monetary protocol. A hard fork can change the issuance pattern, or it can change the value of something. So that makes an investment contract under securities law.”


Follow us on Twitter, Facebook, Telegram, and Google News

Solomon Odunayo

Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

Recent Posts

Polkadot (DOT) and Toncoin (TON) Swung High – IntelMarkets 400% Rally Since ICO Debut Spark Excitement

The bulls are back, with Bitcoin (BTC) on price discovery. Alternative cryptos are also gaining…

3 hours ago

XRP, DOGE, SHIB, ADA in Focus—Can They Achieve 10x, or Will Newcomer XYZVerse Outpace Them?

As established cryptocurrencies like XRP, Dogecoin, Shiba Inu, and Cardano aim for significant growth, speculation…

6 hours ago

Mathematics Whiz Kid Who Made $40 Million From Buying Bitcoin Early Moves Into This $0.057 Altcoin For 800x ROI For BTC-Like Gains

The story of a young mathematics prodigy who earned $40 million from his initial investment…

6 hours ago

Top 4 Altcoins Cheaper Than Cardano Poised For Major Gains

As the cryptocurrency market expands, investors are looking beyond giants like Bitcoin and Ethereum to…

7 hours ago

3 High-Potential Cryptos Ready to Surge if Bitcoin Reaches $100K by Year-End!

As Bitcoin approaches the elusive $100,000 milestone, the entire cryptocurrency landscape is set for a…

7 hours ago

PEPE Trading Goes Live On Coinbase

Coinbase recently announced the availability of PEPE, the meme-inspired cryptocurrency, on its trading platform with…

7 hours ago