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Under this "Howey Test" Bitcoin would be considered a SEC registered security.
by elmar 9y ago
Under this "Howey Test" Bitcoin would be considered a SEC registered security.
- danharaj 9y agoBitcoins aren't issued, they're created by mining and they are used to participate in the blockchain. In particular, there's no third party trying to valorize my BTC. However if I created a coin the possession of which entitles you to a cut of my bitcoin mining operation, yes that would be a security.
- elmar 9y agoBitcoin mining is like buying a lottery ticket, you exchange electricity cost for the chance of wining Bitcoins. You could make the case that Bitcoin main valuation is from the network efect, so other people buying and using Bitcoin increases the value of your Bitcoin.