United States, Bitcoin, Director Of Research discussed on Let's Talk Bitcoin!

Automatic TRANSCRIPT

Boom it's the th the february 2018 and this is episode three 55 of let's talk bitcoin on today's episode of what start bitcoin uneuropean event vulcan perc director of research at coin center peter extra joining us today thanks for having me out of so in the beginning there was bitcoin than there were all coins than there were tokens and then there were ico czar initial quaint offerings in the world of crypt on many people's think of all these things this kind of the same thing but increasingly though it seems like they might be really different indeed recently the head of the commodities futures trading commission and the head of the securities and exchange commission to regulatory bodies in the united states testified in for of lawmakers in this question was kind of a central point peter can you lay out for the listeners the difference between a token which is a security and a token which is not yeah no problem actually it's not an easy topic but there is a clear answer the answer is that there is a flexible test that's been in existence for about seventy years now for what is a security and what is in the security and it's the how each at asked from the case by the same name and what that test says is were looking for a situation a security will exist in a situation where you had an investment of money in a common enterprise with an expectation of profits dependent on the efforts of a third party or promoter and so you can kinda start to think about how that interacts with cryptocurrencies with old coins with token sales or token generation events which is a crazy new word i've heard or or ice does indeed because in all these situations you have burying levels of investment like maybe there's no investment maybe like with bitcoin people kindly been best but really they just dedicate computing resources to the network and that's how they get the tokens richard not really like you handed your money to somebody that in fact there's really no body on the other side you know it's a protocol and then there are situations like an ico on the other side of the extreme where obviously there's investment there somebody out there saying like we're going to bed.

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