Craig Wright discusses economic policies, the housing bubble and Bitcoin

In a recent discussion with fellow Australian economist Steve Keen and Metanet TV editor Jon Southurst, Dr. Craig Wright shared his thoughts on …

In a recent discussion with fellow Australian economist Steve Keen and Metanet TV editor Jon Southurst, Dr. Craig Wright shared his thoughts on monetary and economic policies, the debt and financial crisis, Bitcoin and much more.

Dr. Wright considers himself a neoclassical economist. This approach focuses on the determination of outputs and income distributions in the market through supply and demand. In order to understand economics, you must comprehend the interaction of government and rules with economics and growth, he stated.

While economic policies have continued to focus on the monetary side, they have ignored a much more important aspect; the amount of capital we have available in the society. The monetary aspect is easy to manipulate, Dr. Wright stated, stressing the need to formulate policies that factor in the available capital.

Dr. Wright and Keen also discussed the housing bubble that has threatened the financial systems of advanced economies including the U.S. and Australia. In the U.S., the political push to have everyone own a house, no matter their credit score was responsible for the inflating house prices.

The economic systems in place have also served to purposely mislead us as to what constitutes an investment. All through school, we are lied to that investment is putting our money in a bank for the bankers and the government to play around with.

“Investment would be ‘I’m searching for a new source of coal,’ ‘I’m finding a better way of getting oil,’ ‘I’m inventing a new technique to make food,’ ‘I’m building a factory that’s going to create something more efficiently.’ That’s investment,” Dr. Wright explained.

Dr. Wright also sought to correct a common misconception that Bitcoin was developed to take away the government’s hold on the economy:

The idea that Bitcoin destroys monetary policy is actually incorrect. It’s a lie told by anarchists to mislead people about how Bitcoin works.

True to his philosophy that Bitcoin is not anti-government, Dr. Wright explained how people on the SegWitCoin (BTC) camp have misled the world into thinking Bitcoin is an anonymous currency that can shield them from the reach of the law. One of the reasons this narrative has become widespread is because Bitcoin was launched during the height of the housing bubble. Early adopters started hailing Bitcoin as the alternative that would topple the existing legacy systems. This was never the motivation behind Bitcoin, Dr. Wright explained.

When you properly scale Bitcoin, it’s one billion times more efficient than any system we have. It’s more efficient than Visa, Mastercard, banks, everything combined.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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A Man Who Says He Invented Bitcoin Has Been Ordered By A Judge To Pay Up Billions – In Bitcoins

Craig Wright is an Australian computer engineer who has claimed the identity of Satoshi Nakamoto, pseudonymous inventor of the cryptocurrency …

Craig Wright is an Australian computer engineer who has claimed the identity of Satoshi Nakamoto, pseudonymous inventor of the cryptocurrency Bitcoin. Now, The Guardian reports that a judge in Florida has ordered him to pay a full half of all the bitcoins he earned between 2009 and 2013 to the estate of the late David Kleiman, who Wright has said was his partner before his death, as well as half of the value of his intellectual property from the time of Kleiman’s death in 2013.

The court hasn’t yet made a determination of exactly how many bitcoins Wright has, but the Nakamoto identity’s bitcoin wallet would be valued at almost $10.5 billion as of this writing. That means that he would have to pay more than $5 billion worth of bitcoins to the Wright estate.

Dan Kitwood/Getty Images

You can probably already gather that this is a pretty complicated case, and in fact the court ruling isn’t a clear cut victory for Kleiman’s estate. That’s because despite Wright’s claim to be Nakamoto, he also says he can’t access the billions worth of bitcoins that are the digital property of that identity. He reportedly explained in court that after a crisis of conscience regarding Bitcoin’s use in illegal activities in 2011, he locked the bitcoin behind an encryption that was then placed in a blind trust. The encrypted key was, Wright says, given to Kleiman, who then cut it up and distributed it to several other people. According to Wright, the complete key won’t be delivered to him until sometime early next year, when a bonded courier is slated to place it in his hands.

If that sounds more like a spy novel than real life to you, you’re in agreement with the presiding Judge Bruce Reinhart, who reportedly said the story was “inconceivable.” He went on:

“During his testimony, Dr. Wright’s demeanor did not impress me as someone who was telling the truth…When it was favorable to him, Dr. Wright appeared to have an excellent memory and a scrupulous attention to detail. Otherwise, Dr. Wright was belligerent and evasive.”

Now, the case of the missing bitcoins will probably take quite a while to get totally straightened out.

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Dr. Craig Wright: Bitcoin is anything but anonymous

In Section 9 of the Bitcoin white paper, Dr. Wright, then going by Satoshi Nakamoto, defined the notion of a new privacy model that would be a great …

In the past decade, as Bitcoin has established itself as the most efficient financial system in the world, there has been a lot of false representations that have been propagated about it. One of the most common ones is that Bitcoin is anonymous. Well, it’s not and what some people falsely label as anonymity is in fact, privacy. In his most recent blog post, Dr. Craig Wright delved into the privacy model of Bitcoin, explaining why anonymity was never an option.

In Section 9 of the Bitcoin white paper, Dr. Wright, then going by Satoshi Nakamoto, defined the notion of a new privacy model that would be a great improvement on the traditional model. In the traditional banking model, transacting parties have to share personally identifiable information with third parties. However, with Bitcoin, the parties can keep the public keys anonymous outside of those who require knowledge of the transaction.

This has come to be falsely identified as anonymity, but it’s not. This is privacy. “It is keeping details away from the public; not those who were involved in the exchange and certainly not those who are required by law to monitor exchanges.”

The traditional banking model is notoriously closed off from the public, and rightly so. Revealing the details of a transaction would put the personal information of the transacting parties at risk. In an era where identity theft has become quite prevalent, the effects would be devastating. However, it also makes it impossible to view the transactional flows in any exchange, even when it’s of public interest. It leaves the public reliant on information released by the trusted intermediaries.

Bitcoin introduced a new privacy model in which transactions are no longer completely private. Dr. Wright explained:

In order to stop the main problem with digital currencies, double spending, it has been necessary to create a system that announces all transactions publicly and which can be viewed and analysed at will. Privacy can be maintained, but it is no longer associated with the transaction.

In this privacy model, identities are firewalled from the transactions and the public, but they are not removed.

While Bitcoin introduced the world to a decentralized financial system, many have perceived this to mean that perfect decentralization is possible, wrongly so. Perfect decentralization results in chaotic resource allocations. Ironically, a completely decentralized system results in an extremely centralized one as those who are most efficient at a point in time gather more resources and use them to take further resources from the competitors.

Dr. Wright further elaborated:

The model used to allocate identity and privacy within Bitcoin is one that maximises informational efficiency. Identity both has value and comes with its cost. Parties involved in transactional exchanges where identity is involved have to act to secure the information associated with the exchange. The cost, liability, and risk associated with its disclosure, theft, and fraud increase the cost to intermediaries, and lower the efficiency of trade and exchange.

Bitcoin’s privacy model doesn’t remove identity. Instead, it eliminates the need to use identity in a manner that lowers the security of the participants. This new privacy model allows participants to engage in a peer exchange whilst only having to store the minimal identity required to complete the transaction. Dr. Wright concludes:

Well-constructed systems for the private association of keys that are hierarchically determined from an identity key that is never used within the blockchain itself will allow individuals and corporations to interact using new key pairs for every transaction whilst simultaneously being able to provably exchange identity with other people in Bitcoin’s new privacy model.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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$5 billion dispute: Satoshi Nakamoto does not want to give 0.5 million BTC, doubts the powers of …

Craig Wright – the self-proclaimed Satoshi Nakamoto – is preparing to appeal the court ruling, which ordered him to give 500,000 BTC to the family of …
03/09/19 06:00UTC-7
Craig Wright disputes $5.2 billion decision
Craig Wright disputes $5.2 billion decision

Craig Wright – the self-proclaimed Satoshi Nakamoto – is preparing to appeal the court ruling, which ordered him to give 500,000 BTC to the family of his deceased partner. The plaintiff doubts that the court had sufficient authority for such a decision.

Craig Wright dodges paying 500,000 BTC

Craig Wright’s lawyer, Andrea Rivera, has filed a petition with the United States District Court for the Florida. He asks for a 14-day delay in appealing the decision of Bruce Reinhart Magistrate, who ordered Wright to pay 500,000 BTC in favor of the family of his deceased partner, Dave Kleiman.

Wright’s representative claims that the magistrate has exceeded his authority, which means that his decisions have no legal force. The Wright team needs 14 days to gather evidence of their innocence.

Interesting in the section: White Paper, as source of Bitcoin

  • The deadline for appealing the decisions of the magistrate was to expire on September 10, 2019. If the court approves Wright’s petition, the deadline will shift to September 24th
  • Kleiman`s brother sued Wright in 2018, claiming that Satoshi Nakamoto stole 500,000,000 BTC from his relative
  • On August 26, the magistrate granted Kleiman’s lawsuit and ordered Wright to transfer bitcoin to him. At September 3 prices, this is more than $5.2 billion.
  • After the decision, Wright gave an interview to Modern Consensus, in which he stated that “he has no other choice but to enforce the court’s decision”
  • Craig Wright claims to be Satoshi Nakamoto, who created bitcoin. He has not yet submitted conclusive evidence to his statements

Editor: Godfrid Brower

See also: “Investors increase their gold reserves for the third month in a row”

#CraigWright #SatoshiNakamoto #Bitcoin #BTC #DaveKleiman

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Nakamoto Candidate Ordered to Surrender Bitcoin

Satoshi Nakamoto is the name attached to the Bitcoin whitepaper that launched the cryptocurrency in 2009. However, the name is a pseudonym and …

Dr. Craig Wright, the self-proclaimed Bitcoin inventor, has been ordered to surrender half of his cryptocurrency assets.

The ruling, which came from a Florida judge earlier this week would be run-of-the-mill. That is, if we weren’t talking about billions of dollars and the potential unmasking of Satoshi Nakamoto.

Who Is Satoshi Nakamoto?

Satoshi Nakamoto is the name attached to the Bitcoin whitepaper that launched the cryptocurrency in 2009. However, the name is a pseudonym and the real creator’s true identity has remained a mystery.

Naturally, people have been out to solve that mystery but have encountered nothing but dead ends. Some people claim to be him, others claim to know him. In 2015, WIRED magazine proposed to have found him.

Who Is Craig Wright?

Dr. Wright, according to WIRED, had been potentially outed by a dark web hunt. The search revealed deleted emails and blog posts attributed to Wright referencing elements of Bitcoin before it launched.

Craig WrightCraig Wright
Craig Wright

The following year, the Australian publicly claimed to be Nakamoto to major news publications and magazines. He still identifies himself as Nakamoto on his personal blog. That is, despite the fact that the evidence that he provided to the BBC and others was later found to be fraudulent.

That brings us to this week. The order to hand over his crypto wasn’t part of a crypto case, but rather an estate case. The ruling, reported by The Sydney Morning Herald, says that AU$5.9b belongs to the estate of Wright’s late partner.

Wright could still argue the case in court and potentially avoid handing over the crypto. However, this might play into his hands. His representative said that if he hands over the coins it might help prove that he is the real Satoshi Nakamoto.

Why the Case Is Significant

For the cryptocurrency community, this could play out in a number of ways.

Many might be intrigued to know who the real Satoshi Nakamoto is. However, some Bitcoin zealots are not likely to accept anyone as the real creator.

What’s more intriguing is what might happen to crypto markets if that many coins were returned into circulation. If Wright has access to them – which he claims he doesn’t – they’re just sitting somewhere. “Sitting somewhere,” is what they’ll be doing if he’s not the real Nakamoto and can’t access the coins. That is to say, he claims to both be Nakamoto and to not have access to the coins. Some say those things don’t go together.

Supposing he does hand over the coins, everything falls into the hands of his late partner’s estate. The estate could HODL the coins and everything would continue on. However, if they cash in their chips, it could flood the market and drop the value. At least, temporarily.

This is definitely a story to follow. It could play out in a number of ways and what happens next could change Bitcoin forever.

Jon Jaehnig is an American freelance writer specializing in Technology and Health. Jon has degrees in Scientific and Technical Communication and Journalism from Michigan Technological University and lives in Michigan’s Upper Peninsula with his wife and cat. For more from Jon, you can follow him on LinkedIn and Twitter.

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