As non-financial companies indulge in crypto-related activities, both traditional and modern investors have identified the incoming change in business dynamics. As a result of token offerings, businesses will have the power to dictate investment strategies, while ensuring greater circulation of capital within the business. In order to provide some clarity into the future of investments, former CTO of Coinbase, Balaji Srinivasan, took to Twitter to share his take on the matter.
On a surprising note, the prominent crypto-leader tweeted,
“Over the long term, every major tech company may decide to issue a crypto dividend. Peel off $30B of their stock, tokenize it, and distribute over ~300M Americans, or at least every American active user. So that’s at least $100 per person, $500 if all five of GAFAM do it.”
Srinivasan’s thoughts have previously been mirrored by other players, who have hinted at crypto’s enormous role in funding businesses. Although Srinivasan spoke about the involvement of GAFAM (Google, Apple, Facebook, Amazon and Microsoft), goliaths such as Nike, Jaguar and other financial players have also joined the crypto-race for making the most of the coming disruption.
Further, Srinivasan explained that the process could work similar to Alaska Permanent Fund workflow. He added,
“More interestingly, you might also put some aspects of network governance into these tokens such that the public could vote on who has an account and under what circumstances. Perhaps quadratic voting?”
Most crypto-enthusiasts responded positively to this new outlook. In doing so, one of Srinivasan’s Twitter followers commented,
“This makes the most sense out of everything I’ve heard about crypto. It makes every citizen an asset holder and the incentive for GAFAM is the public’s suport. Bread and circuses (E3 and crypto) may usher in the era of the technocrats yet.”
While the decade-old industry built on trust has struggled for acceptance, 2019 seems to mark a new awakening for the entire ecosystem.
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Bitcoin is an enterprise; its users are comparable to traditional shareholders, claims Goldmoney Founder
Bitcoin was conceived in the backdrop of banks bailouts and the 2008 financial crisis. The recession and the loss of faith in banking, financial institutions gave Bitcoin a platform to rescue the ones affected, giving them hope for a better financial system without the hassle of corrupt institutions. With the rise of Bitcoin’s fame, both in the darknet and in the mainstream, questions about its regulations had to arise.
The question was put to rest when the SEC/CFTC ruled Bitcoin as a commodity and taxed it. However, Goldmoney’s Roy Sebag brought this discussion up again recently in his tweet thread, where he said that Bitcoin as an enterprise is working towards its good, comparing its users to traditional “shareholders” among other things, while concluding that Bitcoin is a security. He tweeted,
“Is Bitcoin a security? <10 years old so regulators haven’t even had enough time to truly learn how it works (think Napster or Kazaa in early days). Miners are clearly issuing coins and responsible for governance, an absence of formal relations among them is irrelevant….”
In successive tweets, Sebag attributed miners with the role of “stewarding” the so-called enterprise. In return, these miners get paid in “direct fees” or in “share appreciation.” In Bitcoin’s case, it is the mining reward, which is “BTC”. Similarly, buyers are compared to “shareholders” with a common interest in the enterprise, i.e. profit. Sebag added,
“Coins trade at exchanges. The common enterprise is designed for the price appreciation of coin.”
Bitcoin could face a shutdown by the government, just like it did with big players in file sharing, said Sebag, who added that Bitcoin could also be interpreted as a security under the “34 act of the SEC.” The Goldmoney Founder concluded that “this realization rests on the belief that neither Bitcoin nor any common enterprise is truly decentralized.”
However, his inputs weren’t very well-received by many in the crypto-community. Casa’s CTO Jameson Lopp refuted Roy Sebag’s ideas, tweeting,
“Roy will believe what he wants to believe, though if he’s not actually participating in Bitcoin then his beliefs are irrelevant to its consensus formation.”
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