Wednesday, January 15, 2020

Craig Wright claims to have received $10 billion's more likely that he is Satoshi...

The prices of cryptocurrencies have increased by something of order 10% in a recent day or two. The total capitalization is $238 billion at this moment, the BTC Bitcoin is 66.4% of it i.e. $158 billion. It's followed by Ethereum at $18 billion, Ripple at $10 billion and...
BSV (Bitcoin Satoshi Vision) championed and engineered by Craig Wright has become the 4th cryptocurrency by capitalization, over $6 billion right now (since Christmas, its price has quadrupled).
The fifth is the old Bitcoin Cash (it jumped above BSV some hours after this text was written, it's a fierce contest), the sixth is Tether USD, and the seventh is the Litecoin.

The main reason is that Craig Wright, the Australian self-admitted father of the Bitcoin, has submitted the documents claiming that he has received the keys needed to unlock his BTC 1.1 million (well, plus over a million of all other forks of the Bitcoin). Only he can be sure whether he may unlock the coins but a sufficient market was persuaded by the validity of the claim.

The sentence isn't ever quoted too precisely so he could have received some keys from Škoda Citigo-e iV instead. But assuming that the sentence is honest, some bonded couriers have delivered the codes needed to decrypt a file with private keys that are needed to send (and therefore own) BTC 1.1 million, supposedly the first Bitcoin mined by Satoshi Nakamoto.

This fortune is divided into 16,404 Bitcoin addresses (wallets), we hear. Incidentally, that's a very reasonable number, perhaps way too reasonable. This recipient from the Genesis block has BTC 68, multiply it by by 16,404 and you get 1.1 million LOL.

If he really were in possession of these billions of dollars, it would make it much more likely that Craig Wright was the boss of the group of three people – Craig Wright, Dave Kleiman, and I don't know who is the third – that invented the Bitcoin over a decade ago. Perhaps Shyaam Sundhar R.S.? My idea... I have considered Wright to be the single most likely man to be Satoshi since late 2015.

Ironically, Wright – who may soon tangibly prove that he is the main father of all this stuff who should be worshiped by all crypto fans – is the most hated person among the Bitcoin cultists. "Australian man bad," these mindless sheep NPCs have been saying for years. They dislike that he is not invisible, he is not progressive, he is not a climate alarmist, and he is not extraterrestrial, among other things. On the other hand, his muscles are in a very good shape, due to the hours in fitness etc., a fact that most of those people also hate.

Needless to say, the body of evidence against the claim that Wright is Nakamoto is empty. Like typical SJWs, they apparently believe by repeating their hateful outrage all the time, they may turn something that may very well be the truth into an untruth. It doesn't work like that, worthless brain-dead NPCs.

If Wright's claims about the keys are wrong, it's pretty clear why he is doing this deception. He probably owns a larger amount of his BSV coins – which are technologically superior as a payment method than BTC – and by spreading the hype and increasing the price, he may become more wealthy once he sells those BSV.

It's much more interesting if he is right. It means that he, Kleiman, and a third person have invented the Bitcoin, mined over 1 million of the initial coins, and agreed how to store them. The agreement involved the Tulip Trust, a secretive arrangement that made Kleiman the owner for a while but that guaranteed that Wright would take over all the coins on January 1st, 2020.

It seems that nothing much was happening on January 1st but now, two weeks later, we're being told that there was a slow delay but Wright got the keys. This bonded-courier setup uses a cute cryptographic method that allows you to decode the data if you know some fraction of the "partial keys" held by several guards of the trust. You don't need all of them to give the keys to unlock the stuff, it's enough to get 5 of 7 or what the fraction is. It's mathematically interesting that such algorithms exist but they do.

By having surpassed BCH (Bitcoin Cash) in value – and the fight was fierce and hard – in the recent 12 hours, we have seen the so-called "Bitcoin Cash flippening". This phrase means that the underdog fork of the Bitcoin Cash, the Bitcoin Satoshi Vision, became more valuable than the "frontrunner" BCH, according to the capitalization.

If Wright may sell something close to one million BTC or at least half a million (the latest verdict says that Wright doesn't have to pay 1/2 to Ira Kleiman! That good development for Wright may be the reason why the coins "suddenly" appeared), I believe that one of his goals will be to heavily depress the BTC price (but he doesn't want to do it too fast because he could throw most of his $10 billion into the trash bin). In that case, we will also see the main flippening, the "Bitcoin flippening", as BSV would become the most valuable fork of the Bitcoin. Right now, BSV is more than 20 times less valuable than BTC but this comparison may change rather rapidly.

BSV and BTC differ in various ways. BSV, as represented by Wright, is more conservative. Wright doesn't want to "fight the banking system" and similar insane things, as the BTC NPCs do; see his intelligent essay about this issue written today. He believes – and I think that Satoshi Nakamoto believed, whether it was the same man – that the cryptocurrencies should work in agreement with the existing laws of the countries. Also, it is technologically better as a method for payment. It has larger blocks, will have unlimited block size, the difficulty adjusts more rapidly, the scaling is more plausible.

Needless to say, there are lots of attributes in which BSV and BTC don't differ. They're not pegged in any way so their volatility is unavoidable which makes them unusable as the basic unit for prices and the general economy. At various points, the degree of anonymity may be too high or too low, the irreversibility may be bad, and so on.

Nevertheless, it would be progress if the BSV trumped and displaced BTC because the BTC, like the climate hysteria, Tesla stocks, and other things, is a terrifying reminder of the brain-dead radicalism and unlimited, idiotic group think of a big brainwashed part of the young generation. And if Wright led the invention of the Bitcoin, he obviously deserves some wealth much more than anyone else in the cryptocurrency industry does. In particular, he deserves the billions much more than various low-level crooks and than Ira Kleiman, the estranged brother of Dave Kleiman. These brothers didn't even speak to each other and the Bitcoin-unrelated brother should get billions of dollars for his brother's contributions? It doesn't sound fair.

This takeover of intellectual property by losers who haven't ever contributed anything is one of the themes in a wonderful interview with Wright in the Modern Consensus that was published today. Wright also discusses the stupidity of the heroin addicts and other criminals that have infiltrated the Bitcoin world, the delusional view that Nakamoto was anti-legal-system and anti-banking, and many other things.

P.S. 1: Not that it matters too much but the overall current market value of the private keys to 1,100,111 Bitcoin (didn't he mean that he has this many Bitcoin in the binary form?) is over $10 billion now because each Bitcoin unlocks $8700+$360+$330+$15 = $9400 or so in BTC+BSV+BCH+BTG and $9400 times 1.1 million is about $10.3 billion.

P.S. 2: Remarkably, the Bitcoin Reddit doesn't contain the name Wright in the recent 24 hours. It's as if the Internet's main forum didn't mention Jesus during the Second Coming of Jesus Christ.

P.S. 3: These moves are 50 times less dramatic but the Czech Crown is strongest relatively to the Euro since 2012, having beaten a temporary February 2018 post-interventions high near 25.20. The jumps when the crown strengthens by a few hellers indicate short squeeze. I find it likely that all those "experts" who claim that the crown will weaken again are those who made a wrong bet on a weakening crown – the crown was almost constant for two years – but many of them already closed their position so they should lose the motivation to lie. Note that the very short-lived peak saw EURCZK below 23 in 2008 but EUR started well above CZK 30.

P.S. 4: I have actually read a bunch of texts by Wright, covering economics, law, and technicalities of the Bitcoin. Here, in 2017, he warned against SegWit, the segregated witness, a method used by the Wright-free BTC coders to increase the capacity of the BTC a bit. The criticism makes perfect sense: this SegWit – separation of the signatures from the transferred amounts data which are reinterpreted by the miners – creates a growing incentive (growing because the miners are supposedly a decreasing fraction of the growing list of payers) to make a cartel, a version of a 51% attack of a sort, and confiscate all the payments involving the universal wallet. (On the other hand, the motivation for the regular 51% attack doesn't increase with a growing set of users because the attacker may pretty much reverse just his payments.) This criticism is a type of reasoning that is extremely similar to what Nakamoto actually had to analyze in his famous whitepaper.

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