Bitcoin Maximalist Michael Saylor Warns Against Legal Risks Of BRC-20 Tokens: 'You Can't Blame The Community For…'

Business mogul Michael Saylor, a prominent Bitcoin (CRYPTO: BTC) maximalist and co-founder of MicroStrategy Inc (NASDAQ:MSTR), has recently expressed his take on Bitcoin Ordinals, a development he views positively.

What Happened: Despite its potential use in a variety of applications, Saylor believes that many of the early use cases of Ordinals “aren’t terribly serious” and veer towards being more speculative. 

Ordinals are inscriptions that operate in a similar fashion to NFTs or non-fungible tokens, which are primarily found on the Ethereum (CRYPTO: ETH) network. Inscriptions allow for arbitrary and non-financial information, such as images, to be included on the Bitcoin blockchain. On the other hand, BRC-20 stands for Bitcoin Request for Comment, and is an experimental framework designed to create fungible tokens on Bitcoin using the Ordinals protocol.

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Why It Matters: Saylor, in an interview with Decrypt has cautioned against abusing the use of these fungible tokens: “If BRC-20 tokens are viewed as fungible tokens to issue unregistered securities, there’s a lot of objection to that, because it’s unethical. It’s illegal. And you can’t blame the community for objecting to that.”

However, Saylor states that there’s no issue with BRC-20 tokens if they’re issued and regulated in a legal and ethical manner. He emphasizes that the key lies in the perception and use-case of the tokens, such as his idea to tokenize stocks and ETFs trading on NASDAQ. This way, investors could take personal control of their shares of stock rather than leaving them in the care of a centralized custodian.

Price Action: At the time of writing, BTC was trading at $27,343.78, up 2.26% in the last 24 hours, according to Benzinga Pro.

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