Cardano Founder Criticizes SEC and Questions Bitcoin’s Decentralization
In a recent AMA session, Charles Hoskinson, the founder of Cardano, expressed strong criticism towards the US Securities and Exchange Commission (SEC) and raised doubts about Bitcoin’s decentralization.
Hoskinson Challenges SEC’s Approach to Cryptocurrency Regulation
Hoskinson’s main concern lies with how the SEC differentiates between various cryptocurrencies, such as Ethereum, Bitcoin, and Cardano. He questions the SEC’s classification of these assets as securities, particularly in relation to the Howey test used for determining security status.
He argues that if Bitcoin is considered decentralized, then it should not be classified as a security. He challenges the SEC to explain the difference between Ethereum, Bitcoin, Cardano, and other cryptocurrencies using the Howey test.
Bitcoin’s Decentralization and Expectation of Profit
Hoskinson also focuses on Bitcoin’s decentralization and criticizes what he perceives as an inherent expectation of profit among Bitcoin enthusiasts. He refers to them as “orange pill moon boys” and suggests that this expectation of profit aligns with one of the prongs of the Howey test.
Hoskinson Questions Bitcoin’s Decentralization
Hoskinson raises doubts about Bitcoin’s decentralization by claiming that performing a 51% attack on Bitcoin is possible by subpoenaing three major mining pools. He argues that despite this vulnerability, Bitcoin is still considered decentralized while receiving no scrutiny.
Bitcoin Community Responds
Adam Back, CEO of Blockstream, defends Bitcoin’s decentralized status by emphasizing its organic growth and lack of an initial coin offering (ICO). He categorizes Bitcoin as a commodity rather than a security. Hoskinson counters by clarifying Cardano’s launch and its distinction from ICOs.
Erik Voorhees, CEO of ShapeShift, debunks the idea of a 51% attack on Bitcoin, explaining that mining pools do not control the hashrate. He highlights the dynamic nature of mining power decentralization.
Hot Take: Hoskinson Raises Concerns about SEC and Bitcoin’s Decentralization
Charles Hoskinson’s recent critique of the SEC and Bitcoin’s decentralization highlights ongoing debates within the cryptocurrency community. The classification of cryptocurrencies as securities and their level of decentralization remain contentious issues. While Hoskinson challenges the SEC’s approach to regulation, others defend Bitcoin’s decentralized status. This exchange of perspectives showcases the complexities surrounding cryptocurrency regulation and technology. As the industry continues to evolve, these discussions will shape its future trajectory.
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