Recently, discussions on how to control BTC and other digital currencies have been intense. People like Michael Saylor, CEO of Microstrategy, feel that only BTC should be considered a commodity, while all other digital currencies should be considered securities. [Blocktrainer" Roman Reher even wrote an open letter to EU regulators asking for this view to be embraced.
This will make a considerable difference. In the United States, it is regulated by the Securities and Exchange Commission (SEC). The criteria for granting licenses are much stricter than those used by the Commodity Futures Trading Commission (CFTC). In other countries, control practices are similar. Saylor, Reher Many crypto companies will face serious problems, others' claims have been dealt with.
What are Commodities and Securities?
In the traditional world, there is a significant distinction between commodities and securities. Commodities such as oil, gold or other precious metals. They are not man-made, but raw materials that can be found in nature. Agricultural products such as wheat or rice are also considered commodities that can be cultured or genetically modified.
Securities are shares, bonds or derivatives issued by companies or government agencies. They typically pay interest or provide other forms of financial compensation to holders. These asset classes are defined differently between jurisdictions and are not always precise.
Including BTC and other digital currencies in these traditional categories is not easy. MichaelSaylor I think BTC cannot be changed because of its decentralized nature, so it should be regarded as a commodity. He believes that Ethereum and all other digital currencies and tokens are controlled by a small group of people. As such, they are securities and are subject to strict regulation by the SEC and others.
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This type of stand is clearly one of the minimalist styles. Some people believe that there should be only one digital currency in the market: BTC. To them, all other digital currencies are "garbage coins" that should be banned by the government. It`s an oddly nationalistic mindset that clearly contradicts BTC`s libertarian roots. Shouldn't it be decided by the market rather than a central authority?
Let`s not forget that BTC has also gone through some serious changes like the introduction of SegWit or the recent Taproot upgrade. If extremists want BTC "immutability" as the main criterion to avoid classifying it as a security, they are walking on thin ice. It could seriously backfire and side with government agencies to gain advantages over other digital currencies.
There is no doubt that many coins and tokens have been issued over the years with the sole purpose of making their founders rich. Many products will not meet their expectations for merchandise that cannot be clearly identified as fraudulent. Bitcoin's first-mover advantage is hard to catch.
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BTC and Altcoins Need Healthy Competition
However, competition is a good thing. Even if you are a die-hard BTC person, it would be foolish not to use it. Rootstock It is a Bitcoin-based sidechain for implementing smart contracts. It has learned many items from Ethereum. It even uses the same account format and virtual machines. The R&D approach of Monero or Z-Cash privacy coins could also bring more privacy to BTC.
It would be inappropriate to accuse all other coins, or even cooperate with government agencies, of banning them. BTC maximalists should be more open to competition and believe it will only make BTC stronger. It's unlikely that BTC will have coins of several orders of magnitude - but if it happens, we want to acknowledge it.
Best to avoid the stupid battle between BTC maximization and counterfeit money. Our real opponents are governments and monopoly funds.
Of course, we want to identify obviously fraudulent coins and warn people not to invest in them. However, in terms of regulatory authorities, BTC people and counterfeiters should put aside their differences and unite as one.
I firmly believe that neither BTC nor altcoins should be regulated by government agencies and obey their outdated norms. "Commodity" or "Security" This is a term that does not fit the decentralized digital currency world. An international self-regulatory body composed of crypto industry players may be a better way to identify and block bad actors to protect investors.
