Microstrategy CEO and notorious Bitcoin bull Michael Saylor recently spoke with Justin and Aaron Arnold on the Altcoin Daily YouTube channel where he discussed the flagship cryptocurrency and made a side step by making a comparison with Cardano (ADA).

According to Saylor, there is a clear distinction between the proof-of-stake Cardano and the proof-of-work Bitcoin, which is that the former is in his view classified as a “risky security token.” He said:

“In my opinion, Bitcoin is a digital commodity. I think that all the proof-of-stake networks are securities and they’re all very risky. The regulators will decide whether or not they allow them to continue or whether or not they don’t allow them to continue.”

Saylor elaborated on why proof-of-stake projects are securities and not digital commodities, by using Cardano as an example.

“The token is a liability if it’s not a commodity, and so fundamentally, this all comes down to an issue of ‘can you establish your network as a commodity network?’

To be a commodity network, there has to be no issuer, no initial coin offering (ICO), no central organization and if you study the history of Cardano, it’s pretty obvious it’s a security. It checks all the boxes, so I don’t know how you actually get around intellectually to convincing yourself that it’s anything other than a security.”

Selling unregistered securities can have legal consequences, Saylor warned:

“Technology won’t save you though. Ultimately, if you’re selling a security to the general public without a disclosure statement, the fact that it’s technically advanced won’t save you from the securities liability, so I would say technology is not an issue.

The question is really going to be how will the securities regulators deal with crypto networks that are based on security tokens. I don’t know, it’s not my business. I’m not in the business. I will leave it to other people.”

The post Proof-of-Stake Like Cardano are Risky Securities, Michael Saylor Says appeared first on iGaming.org.

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