​Ripple CTO Explains Difference Between Ethereum (ETH) and Mic | Crypto Shake

​Ripple CTO Explains Difference Between Ethereum (ETH) and Microsoft (MSFT) Stock

In a recent Twitter exchange, Ripple CTO David Schwartz engaged in a discussion with Bitcoin proponent Tuur Demeester on the difference between Ethereum (ETH) and Microsoft (MSFT) stock.

The conversation started when Demeester tweeted about the Howey Test, which is a legal test used to determine if an investment is considered a security or not.

Demeester stated that according to the Howey Test, ETH is an investment of money in a common enterprise, with the expectation of profit to be derived from the efforts of others.

Schwartz responded by saying, “I don't understand what you're saying exactly. You're saying there's an investment of money in a common enterprise and that common enterprise is ETH. So you're saying they bought their ETH from ETH?!”

Demeester explained that the running of ETH nodes and the writing of client upgrades is a closely coordinated, for-profit, centralized affair, making it easy to argue that investing in ETH is an investment in a common enterprise.