In this video, I discuss head of the SEC Gary Gensler's recent statement that all proof of stake tokens are securities. This makes sense because like securities, they offer an intrinsic yield. Neither physical gold or Bitcoin offer an intrinsic yield.
This is yet another sign that Ethereum passes the Howey Test, and as such will have to be regulated as a security.
I also discuss Vitalik's presale road show, in which he pitched Ethereum as an investment in a common venture with the expectation of profits.
Unlike Ethereum, Bitcoin has no leader, road map, initial token sale used to fund software development, or other signs of a centralized project.
Ethereum passes the Howey Test, and thus will be forced to register with the SEC, or risk losing access to the world's deepest capital market (US).
Unlike Ethereum, Bitcoin is money without an issuer. It is a digital commodity that had no premine or presale road show and that has no living founder/leader leading the development road map.
If Ethereum ever needed to register with the SEC, not only would there be large fines involved--
But Ethereum would also need to disclose all material information related to the project's principals and their holdings, prospects, risks, etc.
These disclosures would lead to a mad rush to the exits by institutional investors and others who were already nervous after the FTX blow-up and see many similarities between Vitalik and SBF.
I also discuss Ethereum's failure to flip Bitcoin after the Merge, and the huge under-performance that Ethereum has been experiencing relative to Bitcoin since September 2022 and even since it peaked against Bitcoin in 2017.
There are basically three kinds of money in the world:
1) Fiat= money issued by a government 2) Crypto (Ethereum)= unregistered securities issued by a company that's pretending not to be a company 3) Bitcoin= money without an issuer (like gold).
You need to choose wisely what to hold in your wallet for this turbulent decade. Make sure that your money is not controlled by a centralized group and that it cannot be debased or censored or otherwise neutered or hijacked.
Because if it can, when times get tough it will be.
Not investment advice! Consult a financial advisor.
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.
My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#ethereum #bitcoin #crypto
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