A heated discussion erupted within the cryptocurrency community after Bill Morgan, a lawyer representing Ripple in its legal battle with the SEC, described Bitcoin as “overhyped.” Morgan’s comments came in response to concerns raised by a community member about the regulatory status of Ethereum and its native token, ETH.
The Controversy Begins
The exchange began when a user named Bill Morgan expressed anxiety over the potential regulatory scrutiny faced by ConsenSys, a prominent Ethereum development company. This raised doubts about the classification of ETH, which could follow a similar path as Ripple’s XRP token, currently embroiled in a legal dispute with the SEC over allegations of being an unregistered security.
Bill Morgan went on to claim that Bitcoin continues to enjoy an “endless market advantage” simply because its creator(s) remain pseudonymous, making it difficult for regulators to identify promoters or target individuals associated with the cryptocurrency. This advantage, according to the user, has resulted in a “distorted market” where Bitcoin is “the most marketed, promoted and over-hyped asset in history.”
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Show more +The Immaculate Conception Argument
Responding to Bill Morgan’s comments, another user, Hanakookie1, defended Bitcoin’s position, stating that it has had legal clarity since 2015, even before the launch of Ethereum. They argued that Bitcoin’s market advantage stems from its “immaculate conception,” implying that it was created without a central authority or promoters, unlike other cryptocurrencies like XRP.
Bill Morgan dismissed this argument as “ridiculous,” suggesting that attributing Bitcoin’s creation to a divine force would be akin to claiming “God created it.” The user asserted that many tokens have enjoyed regulatory clarity outside the United States since 2015 and that Bitcoin’s market position is significantly aided by the actions of US regulators, who have targeted cryptocurrencies as potential securities.
The Overhyped Claim
When asked directly by another community member, Señor Bitcoin, if he truly believed Bitcoin to be overhyped, Bill Morgan responded affirmatively. He explained that Bitcoin’s market dominance and regulatory advantages do not arise from its fundamentals or underlying technology but rather from the inability of regulators to identify parties to target.
Morgan acknowledged that this could be viewed as a strength from a certain perspective but stated that it is not the type of strength on which an entire market should be based.
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