American Government (SEC) tries to say Bitcoin is a security but McAfee said Bitcoin and other cryptocurrencies can't be classified to be securities, normally, because they're different.
Why does Gov care? Because government, all around the world are trying to regulate, control, and terminate alternative money, especially Bitcoin and other cryptocurrency coins (Alt-Coins).
Most cryptocurrencies aren't actually securities.
SEC must rely on a Supreme Court decision that created a Howey Test for determining whether an item can be classified as a security or not: three key questions are on that Howey Test.
Bitcoin works on a decentralized blockchain which means the database is locked safely in a program that is almost Read-Only like as in Read Only Memory (ROM) in some ways in a pre-program ruled by the arts and sciences of cryptography on many computers all around the world that is automatically and systematically backed up on millions of computers all around the world....
... Bitcoin is similar to Bit Torrent which is a system of downloading and uploading up and down, in and out, files, peer to peer, from computer to computer, bits and pieces of files to transfer the data, the files, part by part, piece by piece, sharing the files, the pieces, from many places all at the same time...
Synchronized, Vietnamese Swimming/Driving
Cryptography/Bittorrent is like an anonymous organism that is like synchronized swimming or like the way Vietnamese drive in Vietnam.
Long story short, Bitcoin is decentralized through a blockchain and/or blockchains governed not by people or companies but by and through cryptography. Therefore, by this one thing alone, it can't be a security which then would get government and the IRS and others involved maybe in trying to get you if Bitcoin was a security.
Bitcoin Analogies, MEMES, Needed
For those who get this, be patient for those who do not. Make up some analogies to help explain Bitcoin to newbies and share them here if you want. Make videos and posts about it. Because American government is trying to stop it. Thanksgiving 2017 on my way from Vietnam to America, there was a form that said that you must tell U.S. government about the money you have including digital money.
Digital Currency Bitcoin?
They want you to think that Bitcoin is just digital money like American Dollars (USD) or other fiat in online bank accounts. But that is not completely true. You do not really have to tell them about your Bitcoin but they do tell you that you have to but they're lying. Holders of Bitcoin are outing that Bitcoin will make money. For most Crypto Coins, it is our own effort that bring returns. Again, Bitcoin is a CRYPTO Currency and NOT a mere DIGITAL currency.
There are key differences.
In order for Bitcoin to be a security, Bitcoin must meet three requirements:
First, Passive Participants?
First, Bitcoin Holders must be passive participants. They must rely on the efforts of others in order to obtain financial gain. If you have Bitcoin, you are a Bitcoin holder, it seems, maybe to some extent.
Again, in order for your cryptocurrency to be considered a security, it must be dependent and reliant to some extent to the companies or entities or original creators and owners of the said cryptocurrency. When you buy Bitcoin, you don't depend on Satoshi. And who is Satoshi? What is Satoshi? We can speculate and guess. Some say Satoshi was this one guy or this other guy. Maybe Satoshi was a team of people from Japan. And where is he? And is there a Bitcoin Inc. or a Bitcoin LLC.? Is there a Bitcoin company or base or headquarters? No. When you buy Ethereum, likewise, you do NOT depend on Vitalik either to do anything to increase the value of Ethereum for example.
Bitcoin WOULD HAVE TO impart (give out) enough ownership to Bitcoin Holders in order for Bitcoin to be a security which then government could try to stop and regulate and terminate Bitcoin: reminds me of 1930's Germany control over education, media, free speech, guns, property, freedoms.
Second; Third Party Cooperation
In order to have a security, you must expect this ownership to come entirely from &/or through a third party through the process of buying it and waiting, sitting on it, as others do the work to increase the value of your ownership in the entity. Again, is Bitcoin an entity? Is Bitcoin a centralized company? No. In other words, there is no entity. There is no central base for Bitcoin and for most cryptocurrencies. Maybe Bitcoin is like the Borg. Maybe not. I take that back because even the Borg had a queen. And maybe Bitcoin is like socialism, communism. wait, no. I take that back too as even that has central control and stuff.
Again, Bitcoin must be of an entity. Oh, wait, wasn't that number two? I am forgetting what the third point would have been for what would a security a security. Maybe I already said it here. If not, you can tell me what it may or may not be. but I hope you get the point if you didn't already. What do you think? Let me know in the comments below.
Government is trying to scare people from using Bitcoin. And Bitcoin is a system that allows for transactions, exchanges. When I went to Vietnam, I exchanged my dollars (USD) into Vietnamese Dong (VND) and VND may inflate or deflate but that is not a security. That is an exchange. We can also talk about the centralized cryptocurrency markets, websites. Some of those may run into difficulties and stuff. The good news is that decentralized exchanges are rising as well.
Governments and companies and rich people and famous people tell us to buy dollars and not gold and especially not cryptocurrencies and Google is beginning to block cryptocurrency ads but is not blocking ads about men having sex with pigs and other crazy things and Google accept money from those things and other things too. That is why I like to use Duck Duck Go over Google. They are trying to stop Bitcoin and Steem and more. Are we going to let them?
Do we care? We will continue to rise, globally, if we continue, if we do not let them bully us to stop in what we do with Bitcoin and Steem and everything.
2018-03-15 Thu 12:20 PM LMS: Bitcoin = Security?
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There is a McAfee Coin coming. Will you get some? It will have an open-source wallet. It may work on web browsers too, said McAfee. There are other decentralized markets as well. One is called DEX.