The total crypto market cap jumped above the $185.0B level and gaining pace.There was a strong rally in bitcoin price as it traded close to the $6,000 level.EOS price is up around 5% and it seems like it could soon break the $5.00 and $5.05 resistances.Bitcoin cash price is gaining pace and it might clear the $300 barrier once again.Tron (TRX) price is up more than 5% and it recently broke the $0.0242 resistance.Cardano (ADA) price bounced back and it is likely to surpass the $0.0700 resistance.The crypto market cap, bitcoin (BTC), and Ethereum (ETH) are surging higher. EOS, BCH, ripple, tron (TRX), ADA, BNB, and other altcoins might climb higher in the near term.Bitcoin Cash Price AnalysisAfter a downside correction, bitcoin cash price found support near the $270 level against the US Dollar. As a result, the BCH/USD pair started a fresh increase and broke the $280 and $285 resistance levels. The price is now trading near the $295 level and it seems like it could surge above the $300 level in the near term.The next key resistances are near $310 and $312. On the downside, the $290 level might act as a strong support and a buy zone in the near term.EOS, Tron (TRX) and ADA Price AnalysisEOS price tested the $4.700 level recently and bounced back. The price is up more than 5% and it seems like it could gain pace above the $5.00 barrier. The next key resistances are near the $5.05 and $5.08 levels. On the downside, the $4.85 level is the main support for the bulls.Tron price finally formed a decent support base near the $0.0230 level and recently climbed higher. TRX price is up more than 5% and it broke the $0.0240 and $0.0242 resistances. A clear break above the $0.0245 barrier is likely to start a solid upward move towards the $0.0270 and $0.0285 levels.Cardano price is currently recovering and it recently climbed above the $0.0650 level. ADA price must clear the $0.0685 and $0.0690 levels to move into a positive zone. However, a successful close above $0.0700 could only start a strong upward move in the near term.Looking at the total cryptocurrency market cap hourly chart, there was a steady rise above the $175.0B and $178.0B resistance levels. After a minor downside correction, the market cap bounced back above $180.0B resistance and a bearish trend line. It climbed to a new monthly high close to $190.0B and it seems like there could be more upsides towards the $200.0B resistance level. Therefore, there are chances of more gains in bitcoin, ETH, XRP, TRX, ADA, bitcoin cash, litecoin, EOS, stellar, IOTA, ICX, WAN, and other altcoins in the near term.
Archives for May 6, 2019
Bitcoin miners made the case for their industry as a driver of clean energy adoption, rather than the ecological disaster depicted by critics, at Fidelity’s Mining Summit Friday.
The venue for the daylong event was as notable as the talks. The Fidelity Center for Applied Technology, an R&D division that has dabbled in bitcoin mining, hosted the conference at the financial services giant’s global headquarters in Boston. Fidelity has embraced the crypto markets more than most incumbents; this year it launched Fidelity Digital Asset Services, which handles custody of bitcoin for institutional clients and is expected to roll out trading in the coming weeks.
But aside from welcoming the 300 or so attendees and a brief overview of mining history by Jurica Bulovic, innovation manager at Fidelity Labs (a different R&D unit), Fidelity mostly ceded the stage to guest speakers. In their presentations, these miners and others sought to disprove the popular perception that the copious amount of electricity devoted to securing the bitcoin network – 0.26% of world consumption, according to Digiconomist – is an environmental threat.
Miners are constantly searching for cheaper energy, and this is why they will be a catalyst for renewable power development in the near future, said John Belizaire, CEO of Soluna. His company is building a large wind power generating farm in Morocco: the primary consumer of that energy will be Soluna’s miners, but the rest will go to the country’s electricity grid, Belizaire said.
“Bitcoin is at the center of the next great infrastructure that we’ve never seen before. We’re going to go to places that have incredible renewable energy sites,” he said, predicting that the industry’s image will change as a result:
“In a decade we will start referring to bitcoin completely [differently].”
Mining will help monetize the building of global computation networks around the globe, as well as new renewable power sites, he said, and, unlike in the past, it will not require government subsidies.
Rivers, not coal
The widespread notion that “bitcoin is mainly mined with dirty Chinese coal” is not true, said Chris Bendiksen, the head of CoinShares research department. His team has recently conducted research on the main regions and energy sources for mining.
Miners are located mostly in mountainous regions with big rivers and a high share of renewable power in the overall energy mix, CoinShares found: 48 percent of all global mining happens in the Chinese province of Sichuan where renewable energy is prevalent (90 percent of the overall energy mix), and 12 percent takes in other parts of China that together get around half of their energy from renewables.
Another 35 percent of mining is done in various parts of the Western world including British Columbia and Quebec in Canada, Washington State in the U.S., and Iceland. The rest of the world is producing the remaining 5 percent, the report says. Most of these places have high shares of renewable, especially hydro-generated energy in their power generation mix.
In addition, a lot of hydropower in the world is “heavily underutilized,” Bendiksen says, as hydropower dams are built the regions that have suitable landscapes and big rivers, but are not necessarily heavily populated. Miners can put this capacity to good use, he said.
Asked how the data about miners’ concentration was gathered, Bendiksen acknowledged that it mostly comes from miners themselves.
“We just trawled the entire internet, including forums of miners, we talked to miners themselves, read news articles,” he told CoinDesk.
While miners’ communities, for example, in China, might be very “insular” and uninterested in what the West thinks and knows of them, they still willingly answered questions, Bendiksen said.
Catching the waste
Another source of readily available, cheap energy can be the natural gas released during oil mining (so-called associated gas), said Stephen Barbour, president of Upstream Data. Oil companies need to get rid of the gas, which they aren’t using, so they burn it. As a result, 140 billion cubic meters of gas are wasted every year, according to General Electric’s data.
Barbour said his company developed a system that captures gas at an oil drilling site, transforms it into energy and then uses it for bitcoin mining. According to him, a prototype set up on one such site in Canada, has already helped to reduce carbon emissions there by over 10,000 tons in a year.
“It’s been mining since 2017 and it’s been running on vent gas,” Barbour told CoinDesk. In the prototype phase, using a 45-kilowatt power plant and Antminer S9 mining machines manufactured by Bitmain, the system mined around 20 bitcoins over two years.
Upstream focuses mostly on oil producers in the Canadian provinces of Alberta and Saskatchewan, which are rich in oil. There are also plans for Texas, Barbour said: a small oil drilling company, the name of which he said he couldn’t disclose, purchased a mining data center for an unfruitful drilling site.
“A company was searching for oil, it didn’t find any. They did find a lot of gas, but the gas is worthless, you can’t sell it to anyone in Texas right now. So they can either abandon the well and lose money or they can invest in bitcoin mining,” Barbour said.
But more often, “oil companies are a bit shy of buying bitcoin mining facilities,” he added. However, associated gas is a liability for them, so helping them get rid of it by mining is actually a service, for which oil companies might let miners on their territory for free, he said.
None of this is to say protecting the environment is bitcoin miners’ top motivation. “They probably don’t care at all,” Bendiksen said. However, mining bitcoin on fossil fuels is just too expensive, he added, concluding:
“Mining is a relentless driver to lowest global energy prices.”
Image of the Fidelity Mining Summit courtesy of Fidelity
Ripple price traded to a new weekly low at $0.2918 and recently recovered against the US dollar.The price climbed higher and broke the $0.2985 and $0.3000 resistance levels.There was a break above a key bearish trend line with resistance near $0.2970 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair is currently facing a strong resistance near the $0.3040 and $0.3050 levels.Ripple price started a decent recovery against the US Dollar after a strong upward move in bitcoin and Ethereum. XRP broke the $0.3000 level and it may move higher towards $0.3100.Ripple Price AnalysisYesterday, we saw an increase in bearish pressure ripple price below $0.3020 against the US Dollar. The XRP/USD pair traded below the key $0.3000 support level and even settled below the 100 hourly simple moving average. It opened the doors for more losses and the price even broke the $0.2950 support level. A new weekly low was formed near $0.2918 and recently the price bounced back. The main driving force was bitcoin, trading above the $5,850 resistance level.During the recent rise, there was a break above a key bearish trend line with resistance near $0.2970 on the hourly chart of the XRP/USD pair. There was a clear break above the 50% Fib retracement level of the downside move from the $0.3125 high to $0.2918 low. Besides, the pair broke the $0.3000 resistance and the 100 hourly simple moving average. However, the price faced a strong resistance near the $0.3040 and $0.3050 levels. It seems like the price struggled to clear the 61.8% Fib retracement level of the downside move from the $0.3125 high to $0.2918 low.There is also a connecting bearish trend line in place with resistance near $0.3040 on the same chart. Therefore, a clear break above the $0.3040 and $0.3050 resistance levels may open the doors for more gains. The next key resistance is near the $0.3080 and $0.3100 levels. Above $0.3100, the price may attempt to clear the last swing high near the $0.3125 level.Looking at the chart, ripple price clearly recovered nicely after trading to a new weekly low and $0.3000. The current price action is positive above $0.3000. If there is a downside correction, the price may find bids near the $0.3000 level and the 100 hourly SMA. Any further declines may push the price back in a bearish zone towards $0.2920.Technical IndicatorsHourly MACD – The MACD for XRP/USD is showing negative signs in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently retreating from the 60 level.Major Support Levels – $0.3010, $0.3000 and $0.2950.Major Resistance Levels – $0.3040, $0.3080 and $0.3100.
ETH price rebounded nicely after testing the key $160 support area against the US Dollar.The price climbed higher sharply and broke the $165, $168 and $170 resistance levels.There was a break above a contracting triangle with resistance near $162 on the hourly chart of ETH/USD (data feed via Kraken).The pair traded to a new weekly high near $180 and it remains well supported for more gains.Ethereum price started a strong upward move versus the US Dollar and bitcoin. ETH is likely to remain in an uptrend and it could even target a break above the $185 and $192 resistances.Ethereum Price AnalysisYesterday, we saw a downside extension in Ethereum price below the $165 level against the US Dollar. The ETH/USD pair tested the key $160 support area, where the bulls defended more losses. As a result, there was a strong upward move and the price climbed back above the $162 and $165 resistance levels. There was a change in the trend, with a close above the $165 level and the 100 hourly simple moving average.During the rise, there a break above a contracting triangle with resistance near $162 on the hourly chart of ETH/USD. The pair rallied above the $165, $168 and $170 resistance levels. It even cleared $175 and traded to a new weekly high near the $180 level. At the moment, the price is consolidating gains above the $175 level. An immediate support is near $175, and the 23.6% Fib retracement level of the recent wave from the $160 low to $180 high. If there is a downside extension, the price could test the key $169 support level.The mentioned $169 level was a resistance recently and it may now provide support. The 50% Fib retracement level of the recent wave from the $160 low to $180 high is also near the $169 level. On the upside, the main resistance is near the $180-181 zone. A clear close above $180 may open the doors for a push above the $185 and $192 resistance levels.Looking at the chart, Ethereum price clearly jumped sharply from the $160 support area. The current price action is positive and it seems like the price may continue to rise above the $180 resistance level. The bulls may even target the main $200 level in the coming days. On the downside, the recent barriers are likely to act as supports such as $175, $170 and $169.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is currently reducing its bullish slope, with positive signs.Hourly RSI – The RSI for ETH/USD is currently well above the 70 level, with a strong bullish bias.Major Support Level – $169Major Resistance Level – $180
By CCN: On a day when the Ethereum price outperformed bitcoin, soaring more than 6%, the project’s co-founder is speaking out. Joe Lubin, who co-founded Ethereum and founded ConsenSys, the latter of which has dozens of projects “building on Ethereum,” was a guest on the Chain Reaction Podcast hosted by Delphi Digital Co-Founder Tom Shaughnessy. He confronted some of the “growing pains” that Ethereum has been suffering from, saying that Ethereum 1.0 was a “starting point” and developers knew it “wouldn’t be scalable.” Lubin explained:
“Growing pains are essential and wonderful. If we didn’t grow to the point that there were pains, it could be arguged that we’re moving too slowly as an ecosystem… Certainly, everything about Ethereum needs to improve and there are lots of people that are working to improve virtually everything about Ethereum.”
As for bitcoin, the risk is moving too fast:
“Even bitcoin was intended to evolve. Although one could understand the case that it should perhaps evolve more slowly, possibly perhaps even at glacial speeds if you’re building a decentralized money system intended for the planet maybe you don’t want rapid growth in your technology.”
New Episode with @ethereumJoseph 🗝️
— Tom Shaughnessy🦉 (@Shaughnessy119) May 6, 2019
‘Tron and EOS Fake It Till They Make It’
The blockchain ecosystem remains a nascent space, one whose projects are open-source in nature. There’s a lot of collaboration that goes on. But that doesn’t mean different blockchains don’t compete. Lubin stated:
“Good events anywhere in our ecosystem lift all boats and some projects are certainly intending to be competitive with Ethereum. Some projects are focusing on marketing to be competitive with Ethereum. So [put] Tron and EOS in that basket. And both of them kind of taken the approach of ‘raise a bunch of money and fake it till you make it,’ basically. And we’ll see how that goes.”
The global economy is a hulking behemoth of over $80 trillion in wealth. Unfortunately, that wealth is not returned in ratio-balanced measure to the people who do the hard work. #Blockchain technology like #Ethereum can even the scales and increase access.https://t.co/FCRubi1ol6
— Joseph Lubin (@ethereumJoseph) May 6, 2019
Despite the competition day in and day out, Lubin also describes a “collaborative ecosystem.” He says many projects have “close ties to Ethereum,” adding:
“But we all are very friendly pretty much and run into each other at conferences multiple times a year around the world.”
This is where the rubber meets the road. Ethereum – despite growing pains – distances itself from the pack.
“In the context of this openness, this collaboration and communication, Ethereum has, in my opinion, the best technology by a lot. The best technologists and so many more of them. And an orders of magnitude bigger ecosystem. And I feel like the project is moving faster.”
Bitcoin has been able to find some relative levels of stability in the upper-$5,000 region and has settled slightly lower today as it drifts towards $5,700. Despite this, over a seven-day period BTC is still sitting just below its highs, and it may currently be consolidating before it forms another leg up.One interesting trend that Bitcoin’s positive price action over the past month has sparked is a decoupling, with multiple altcoins experiencing drastically different price action than that of the overall markets.Bitcoin (BTC) Consolidates Within the $5,700 Region At the time of writing, Bitcoin is trading down just under 1% at its current price of $5,730, down slightly from its 24-hour highs of $5,830 which were set late yesterday.Over a one-week period BTC has been able to surge from lows of roughly $5,200 to highs of nearly $5,900, at which point the cryptocurrency incurred some selling pressure that sent it slowly drifting back down towards its current price levels.It is also important to note that Bitcoin is up significantly from its one-month lows of just above $5,000 which were set in mid-April.Analysts currently are expressing a somewhat bullish sentiment on the crypto markets, with Mitoshi Kaku, a popular analyst on Twitter, explaining in a recent tweet that he wouldn’t be surprised if BTC’s price hit $6,260 sometime in the near-future.“I don’t have a problem with the price reaching $6260 next week, and if I have to put my finger on a date, Tuesday-Wednesday doesn’t sound crazy at all,” he noted.I don’t have a problem with the price reaching $6260 next week, and if I have to put my finger on a date, Tuesday-Wednesday doesn’t sound crazy at all. Waiting… $BTC 1W #Gann #Coinbase pic.twitter.com/kH5UMZOk3K— Mitoshi Kaku 👨🏻🚀 (@CryptoSays) May 5, 2019Altcoins Decouple From BTC Although the past month has been overwhelmingly positive for Bitcoin, it has been mixed for altcoins, with some posting massive gains while others remain stagnant.XRP is one example of a cryptocurrency that has missed out on the positive price action the markets have witnessed over the past month, as it only temporarily moved from lows of just below $0.30 to highs of $0.37 before it incurred significant selling pressure that sent it back down to the $0.30 region.On a shorter time-frame, Ethereum has been incurring some bullish price action, and has surged 7% over the past 24-hours to its current price of $174. Despite this, over a one-month period, ETH is still down from its highs of roughly $183.In a noteworthy tweet, Heisenberg Capital, a cryptocurrency-focused venture capital firm founded in 2013 by Max Keiser, explained that they believe altcoins will “die-off” as Bitcoin moves towards $100,000 in the coming years.“We see the market rejecting everything, except BTC. This has been our dominant investing thesis since 2011. We’re doubling down on Bitcoin Maximalism with new capital. As BTC climbs toward our 2011 target of $100,000, we believe everything except BTC will die-off,” they explained.We see the market rejecting everything, except BTC.This has been our dominant investing thesis since 2011.We’re doubling down on Bitcoin Maximalism with new capital.As BTC climbs toward our 2011 target of $100,000, we believe everything except BTC will die-off.— Heisenberg Capital (@HeisenbergCap) May 5, 2019As the week continues on and it becomes more apparent as to whether or not Bitcoin is currently consolidating, traders will likely garner greater insight into whether or not an upwards move into the $6,000 region is feasible at this time.Featured image from Shutterstock.
Bitfinex and the New York Attorney General’s (NYAG) legal sparring in relation to $850 million in missing funds escalated with another round of court filings this past weekend.
The top exchange and New York’s principal legal advisor went back and forth with each other in two new letters submitted to the New York Supreme Court. Within the fresh filings, each a response to a previous filing by the other, the same ole song and dance.
Bitfinex continues to deny that it did anything wrong and opines that the NYAG has no legal basis to further probe its business practices or cut off its line of credit with Tether. The NYAG, on the other hand, thinks it’s made a foolproof argument for why those actions are necessary and is pushing its case forward — with some new evidence to give its actions added merit.
Meanwhile in the background, Bitfinex is planning an initial exchange offering (IEO) to recoup the $850 million in question.
“The Need to Maintain the Status Quo”
As with the first filing, the NYAG’s argument in its latest letter is pitched as an attempt to “protect the public.” If Bitfinex is permitted to continue to siphon funds from Tether through the $900 million line of credit it established to substitute the $850 million tied up in questionable payment processor Crypto Capital, Bitfinex and Tether users are at risk, the NYAG argues.
“If Bitfinex is permitted to continue to draw on the Tether reserves (having already drawn at least $750 million dollars), with no assurance of adequate security or ability to repay, there is significant possibility those additional reserves will be unrecoverable.”
In response to the NYAG’s filing, Manhattan Justice Debra James ordered Bitfinex to produce documents related to the NYAG’s investigation into Bitfinex, “including documents the OAG [Office of the Attorney General] had been seeking since November 2018.” In addition, the judge’s issued order prohibits “action by Bitfinex or Tether to access, loan, extend credit, encumber, pledge, or make any other claim, of any variety or description, on the U.S. dollar reserves held by Tether.”
Bitfinex argues that this response serves a greater risk to Bitfinex and Tether users than the companies’ concomitant operations. Particularly, Bitfinex took qualm with the justice’s order to enjoin Bitfinex from drawing on Tether’s reserves. In its own court filing submitted last week, Bitfinex requested that the court throw out the NYAG’s order unless it is modified.
The NYAG dismisses Bitfinex’s concerns that the order interferes with Bitfinex’s operations, writing that the legal action has done nothing to obstruct deposits.
Further, the attorney general provides fresh evidence to justify a deeper probe, including reports that Reginald Fowler and Ravid Yosef, who were recently convicted of conducting unlawful money “shadow banking” for cryptocurrency exchanges, may be related to Crypto Capital and have a hand in the lost funds. Bitfinex in its own filing also mentions that it debited $675 million from Tether’s reserves last year to partly cover the $850 million loss, “a $50 million dollar descrpency” from the $625 million figure Bitfinex accounted for when it disclosed the deal to the NYAG during its investigative subpoena into the exchange.
This, along with the NYAG’s frustrated attempts to procure additional documents related to its investigation, “raises additional questions” that merit the case staying open, the attorney general’s latest letter argues.
“Importantly, the OAG has continued to ask for, but has not received, documents and information that would shed even some light on the ‘liquidity issues’ facing Bitfinex, the exposure of its clients, which would presumably help inform the OAG, and the Court, about the actual financial status of the company.”
“The Attorney General Will Not Succeed on the Merits”
Still, Bitfinex isn’t budging.
The exchange’s response to the NYAG’s response of its own response (are you keeping up?) again requests that the court “vacate or modify” the ex parte order. It rejects both the NYAG’s and Justice James’s belief that the order is “proper and expedient,” largely arguing that the NYAG has failed to substantiate why it or the Martin Act, which its order invokes, has any jurisdiction over Bitfinex and Tether.
“… the Attorney General does not even try to explain how tethers qualify as securities or commodities covered by the Martin Act … the Attorney General should not be afforded the drastic remedy of a preliminary injunction, or an order requiring the Respondents to address blunderbuss document demands, without establishing the basis for its authority to even regulate in this sphere,” Bitfinex’s legal counsel writes in the filing.
It continues to lambast the slew of historical cases that the NYAG uses to justify as its legal precedent as “false.”
Moreover, it denies the NYAG’s allegations that Bitfinex or Tether engaged in fraud when the exchange drew on the stablecoin’s reserves to ameliorate its losses (for its part, the attorney general is particularly concerned that this transaction was not made public). As such, the court order to shutter the $900 million line of revolving credit is “massive regulatory overreach” that has “no corresponding benefit,” the letter reads; on the contrary, Bitfinex believes this action will be “hugely disruptive because it freezes in place over $2 billion of the Tether’s reserves, prohibiting any investment of any kind into the indefinite future.”
The response does not address the NYAG’s concerns with Fowler and Yosef’s “shadow banking” scheme in relation to Crypto Capital and Bitfinex’s funds, nor does it rebut the claim that Bitfinex’s reportedly drawing $675 million from Tether contradicts the original $625 million figure that the exchange reported to the attorney general.
While all of this legal dust has been kicked up, reports have been rolling in that Bitfinex is planning a token offering. The company hoped to raise $1 billion from the IEO in hopes of covering the $850 million lost to Crypto Capital, and it plans to buy back and burner tokens from token holders on a monthly basis as compensation.
Blockchain developer Pieter Wuille unveiled two Bitcoin Improvement Proposal (BIP) that offers new plans for bitcoin’s next big upgrade or “soft fork.”
The two proposals, announced on the bitcoin developer email list, describes Taproot, a code change increasing bitcoin’s privacy. Taproot is expected to be bundled into a Schnorr soft fork that developers have been looking into for quite some time, paving the way for privacy and scalability improvements to bitcoin.
Developers have long been thinking about how to arrange this particular upgrade. There have been a number of proposed changes to bitcoin over the years and, as they are all related, it makes sense to implement them together in one fell swoop. That includes Merkelized Abstract Syntax Trees (MAST), adding, improved bitcoin smart contracts, Schnorr signatures, which adds another way to sign bitcoin transactions, and Taproot, which adds even better privacy.
This pair of Taproot proposals, available on Github, mean the pieces are finally starting to come together.
It’s important that these technical details are now public, because more developers in the community can look at them and see if they agree with the changes. If the community agrees these changes are the right ones to make, then the change could finally go live after being put together over several years.
Notably, some think this will be less controversial than bitcoin’s last soft fork activating Segregated Witness (SegWit). “Bitcoin cash” developers, those who split off from bitcoin because they didn’t agree with the code change, actually really like Schnorr. In fact, they implementing a similar technology in just a little over a week.
For a bit more detail, Wuille’s first BIP describes a “new SegWit version 1 output type, with spending rules based on Taproot, Schnorr signatures, and Merkle branches.”
The BIP primarily describes the timing and methodology to be used for this next upgrade and will include the popular Taproot and Schnorr upgrades to be rolled out while “not adding any new strong security assumptions and “not combining into the proposal any functionality which could be simply implemented independently,” wrote Wuille.
While the second describes “the semantics of the initial scripting system under bip-taproot.”
Wuille added in his email announcing the BIPs that while proposal includes Schnorr, MAST, and Taproot, one other much-anticipated feature will probably not make it in this time around:
“While many other ideas exist, not everything is incorporated. This includes several ideas that can be implemented separately without loss of effectiveness. One such idea is a way to integrate SIGHASH_NOINPUT, which we’re working on as an independent proposal.”
Wuille image via CoinDesk archives
By CCN: Let’s be real. The number of people who believe that Craig Wright is Bitcoin creator Satoshi Nakamoto can easily fit in a sparsely-populated Telegram channel. It includes Wright, Calvin Ayre, Ryan X. Charles, a few dozen BSV supporters, and an army of Twitter bots.
Nevertheless, one of the boldest and most baseless claims in the history of financial technology faces a test later this week.
Will The Real Satoshi Nakamoto Please Stand Up?
As CCN reported earlier this morning, a US court in Florida has ordered Wright to produce documents detailing that Tulip Trust thing he keeps talking about. It’s also ordered him to, essentially, prove that he’s Satoshi Nakamoto.
As legal experts have pointed out, Wright’s defenses against the discovery motions of the plaintiffs were pretty weak.
He didn’t explain why, for example, the executor of the Tulip Trust – whoever that is – would be unable to produce the requested documents.
He’ll be in pretty bad standing as the case proceeds if he fails to comply with some pretty basic fact-finding.
He’s yet to prove that Dave Kleiman ever gave up his stake in the company they co-owned.
He’s yet to prove he’s Bitcoin mastermind Satoshi Nakamoto.
In fact, he’s yet to prove virtually anything besides the fact that he’s very convincing to low-information users who want easy answers. He has proven that he has thin skin and a propensity for taking people to court.
Let me be clear: anyone could have stepped up and said they were Satoshi Nakamoto back when he did.
I would have been wide awake and listening.
Looking Beyond Satoshi’s Bitcoin Horde
I don’t believe the only way to prove that identity is to sign messages with coins that most likely don’t exist anymore. There are other potential ways to prove it, such as validly using Satoshi Nakamoto’s PGP key, the one he used to sign commits for Bitcoin Core when he was still contributing. Of course, this could have been destroyed, as well.
But there has to be some bit of proof, especially for someone who lives a relatively stable lifestyle — something beyond false evidence that can be reproduced by virtually anyone.
Let’s assume there isn’t, though. Take a leap of faith and assume Craig Wright destroyed every piece of evidence that supposedly makes him Satoshi Nakamoto. In that case, he’s got no right coming back now and claiming the identity, even if it belonged to him at one point. We still have to address his claims about having purchased Bitcoin.org, after all.
This is so fucked.
If CSW isn’t satoshi, wouldn’t he want to prove that he wasn’t to avoid a $10 billion dollar liability?
If CSW is Satoshi wouldn’t he want to pretend he wasn’t to avoid a $10 billion dollar liability?
— Kizami Zuki (@Kizami_Z) April 30, 2019
Which he probably didn’t.
Craig Wright and Satoshi Nakamoto Wouldn’t Agree on Important Things
Craig Wright refutes the fundamental ideas of Satoshi Nakamoto. He made a ludicrous claim that he hated Liberty Reserve, and this hatred was part of the foundation of Bitcoin. Meanwhile, Satoshi Nakamoto spoke of integrating Liberty Reserve.
Craig Wright’s antics don’t make much sense. The need for validation as Satoshi, in the form of expensive lawsuits against those who don’t accept it, is a red flag in and of itself.
If you’re Satoshi, why not come back as Satoshi?
Craig Wright has until the 8th and 9th to produce the evidence the plaintiffs seek. It will be an exciting ride whether he provides it or not. On the off chance that this case somehow determines Wright is, in fact, Satoshi Nakamoto, things would quickly change in the crypto industry.
Wright claims that blockchains besides Bitcoin SV, including Bitcoin Core, will be found in violation of various patents. One among a sea of outlandish claims, the legal precedent of his being Satoshi Nakamoto would make a remarkable difference in the future of cryptocurrency.
But what are the odds?
The subject seems so decided against him that there aren’t even any active predictions markets on the subject. Perhaps those who believe and those who don’t should put their money where their mouth is.
Fidelity Investments, one of the largest brokerages on the planet, is set to launch their crypto trading service in the coming weeks, which means that an influx of fresh institutional capital may soon be introduced to the markets.The launch of their crypto trading service comes on the heels of a report they conducted that found that institutional investors are extremely interested in the nascent markets, which may signal that bullish price action is right around the corner.Fidelity Set to Launch Crypto Trading Service Targeting Institutional Investors The launch of this new service will initially be aimed exclusively at institutional investors, who will invest through Fidelity’s new digital asset trading service, aptly dubbed Fidelity Digital Assets.This service, which puts the Boston-based brokerage ahead of its competitors, will not be open to individual investors at this time, unlike some competing services offered by Robinhood and E*Trade, according to an unnamed source who recently spoke to Bloomberg.While speaking about the imminent launch of the new service, Fidelity spokeswoman Arlene Roberts told Bloomberg that they have already developed a set list of clients who will initially be using the service, and will be rolling out additional services based on the needs of clients over the coming weeks and months.“We currently have a select set of clients we’re supporting on our platform… We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin,” Roberts explained.Institutions Very Interested in the Crypto Markets The boundless potential of Fidelity’s new service was confirmed earlier this month when news broke regarding a survey conducted by the Fidelity Digital Assets, which found that nearly 50% of the institutional investment groups they interviewed – which included hedge funds, family offices, foundations, and endowments – considered crypto worthy of being added to their portfolios.Moreover, the report also found that of the institutional investment groups interviewed, family offices and financial advisors viewed the rapidly evolving technology most favorably.“Financial advisors (74%) and family offices (80%) view the characteristics of digital assets most favorably,” the report noted.Fidelity also explained that many institutions have already forayed into the crypto markets, with roughly 22% of those surveyed noting that they already have some exposure to the crypto markets, even if that exposure is relatively small.“According to the survey, about 22% of institutional investors already have some exposure to digital assets, with most investments having been made within the past three years. Four in ten respondents say they are open to future investments in digital assets over the next five years,” Fidelity Digital Assets said.As services like the one being offered by Fidelity begin gaining traction and growing in popularity, they will offer institutions a gateway into the crypto markets, which may ultimately result in a surge in fresh capital making its way into the markets, possibly kindling the flame that ignites the next bull market.Featured image from Shutterstock.