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Staking Claim on Bitcoin — Does Craig Wright’s Copyright Filing Hold Legal Merit?

Does Craig Wright’s copyright claim on bitcoin code change anything?

Bitcoin SV (BSV) has had a big week. On Tuesday, its price jumped by just over 110%, leaping from about $62 at 1:14 p.m. UTC to $132 an hour later. Given that BSV had been having a rough time in the previous month, with a number of high-profile delistings, this dizzying price rise must have come as a relief to the supporters of the cryptocurrency and the company that created it — nChain.

And while explanations for sudden market shifts are often hard to come by in the cryptocurrency industry, some within the media pinned BSV’s abrupt climb on the news that nChain founder Craig Wright had filed a copyright registration for the original bitcoin white paper with the United States Copyright Office. Given that this registration identified Wright as “Satoshi Nakomoto” — a claim Wright has been making since December 2015 — it ostensibly provided him and bitcoin SV with a considerable injection of credibility and authority. So, on the surface, at least, bitcoin SV’s price rise was the result of Craig Wright being seemingly “recognized” by the U.S. government as the true author of the bitcoin (BTC) white paper, and the market rushed to get its hands on the cryptocurrency he now backs.

However, this could show that Craig Wright is trying to ramp up his efforts to intimidate anyone who denies he’s Satoshi Nakamoto and/or calls him a fraud. But even if the filing represents a new peak (or low) in his attempts to browbeat detractors and rival cryptocurrencies, some may argue that this reveals a high level of ignorance and incompetence. The copyright has no legal bearing on attempts to pass off a cryptocurrency as the “real” bitcoin, something that Wright claims he wants to stamp out.

Registering a copyright claim vs. proving a copyright

Wright has filed two copyright claims with the U.S. Copyright Office, with the office officially registering both of these in early April. One is a claim for the original bitcoin white paper, while the other is for most of the bitcoin 0.1 source code, with the nChain press release concerning these registrations summarizing them in the following way:

“U.S. copyright registration no. TXu 2-136-996, effective date April 11, 2019, for the paper entitled bitcoin: A Peer-to-Peer Electronic Cash System, with year of completion 2008. The registration recognizes the author as Craig Steven Wright, using the pseudonym Satoshi Nakamoto.”

“U.S. copyright registration no. TX-8-708-058, effective date April 13, 2019, for computer program entitled bitcoin, with year of completion 2009 and date of first publication January 3, 2009. The registration recognizes the author as Craig Steven Wright, using the pseudonym Satoshi Nakamoto. Wright wrote most of version 0.1 of the bitcoin client software, and the registration covers the portions he authored.”

There’s no disputing that these registrations have been filed with the U.S. Copyright Office. Nonetheless, they don’t provide any real evidence of bitcoin authorship, since — as numerous commentators have pointed out — it’s highly unlikely that the Copyright Office required proof that Wright is “Satoshi Nakamoto” prior to registering the claim.

“This copyright registration doesn’t prove anything about who wrote the bitcoin white paper,” cryptocurrency author David Gerard told Cointelegraph. “Anyone can file a copyright registration on anything — there’s no checking. You’re just making a claim. Multiple people can claim the same work.” Indeed, almost anyone could register a similar claim, so long as they have $35 to spare and know how to fill in an application form.

Several renowned figures within the bitcoin community are even more dismissive of Wright’s copyright claim than Gerard. Entrepreneur and bitcoin core developer Jimmy Song told Cointelegraph, “Absolutely not. The only thing it proves is that CSW is a publicity seeking con-man, but we already knew that.”

In fact, such dismissals prompted the U.S. Copyright Office to respond on May 22 to the clamor over Wright’s new claim by releasing a press statement. The key part of this statement is the first paragraph, which reads:

“As a general rule, when the Copyright Office receives an application for registration, the claimant certifies as to the truth of the statements made in the submitted materials. The Copyright Office does not investigate the truth of any statement made.”

As these opening sentences indicate, the likes of Gerard and Song may have a point. “It is possible for multiple, adverse claims to be registered at the Copyright Office,” the press release added, which also states that someone “who intentionally includes false information in an application may be subject to penalties.”

The press release goes into further detail regarding copyrights involving pseudonyms, once again affirming that no investigations were made by the Copyright Office. “In a case in which a work is registered under a pseudonym, the Copyright Office does not investigate whether there is a provable connection between the claimant and the pseudonymous author,” reinforcing the assumption that the office isn’t qualified to settle the true authorship of cryptography-based works.

The nChain press release did state that the Copyright Office registered the claim “after receiving confirmation from Wright that he is Satoshi Nakamoto.” That said, the office’s press release makes it clear that it simply asked him to confirm for a second time that he was indeed claiming to be “the author and claimant of the works being registered.” So, there’s no indication whatsoever that Wright actually shared proof of Nakamoto’s real identity with the office, potentially contradicting the nChain press release.

What is the reason?

So, if the registered copyright claims don’t or can’t prove anything about Craig Wright’s involvement with bitcoin, the question arises as to why the Australian would want to file them. Well, leaving aside the unproven possibility that he may have been trying to pump bitcoin SV’s price, it’s worth viewing the claims in light of all the recent threats of litigation he’s been making toward various members of the crypto community.

For example, bitcoin podcast host Peter McCormack was served with a claim for 100,000 British pounds (around $130,000), after he had refused to apologize for asserting that Wright was lying about being Nakamoto. Likewise, Wright’s lawyers had also threatened to sue Twitter personality Hodlonaut for the same reason, an action that contributed to Binance‘s decision to delist bitcoin SV, likewise with Kraken, ShapeShift and other exchanges and services.

U.S. federal law requires that the authors register a claim in order to sue anyone who violates their copyright. So, in the light of Craig Wright’s certain litigious tendencies, the move would make sense. According to Gerard:

“You need to file a copyright registration to take someone to federal court over a copyright violation in the US. If you do this within five years of publication, it’s taken as prima facie evidence that your claims are true, and the defendant has to show they’re not. But this registration is ten years since the publication, so it doesn’t even have that force.”

Not only does Wright’s copyright claim not have that force, but there are other problems that would get in the way of Wright suing any of his critics or rivals. As many people on Twitter and other social platforms have already pointed out, bitcoin was originally released under an open-source MIT License. This means that anyone is free to reuse, copy or modify bitcoin’s original source code however they see fit, regardless of whether they’re doing so for profit or not. Because of this, it would presumably be very difficult for Wright to sue someone successfully, seeing as how “Satoshi Nakamoto” — or Wright himself, as he claims — originally declared that anyone could use bitcoin in whichever way they liked.

The difficulties in suing on the basis of copyright claims don’t end there for Wright, who stated in his press release that he has been “dismayed to see his original bitcoin design bastardized by protocol developer groups — first by Bitcoin Core (BTC) in 2017 and then again by bitcoin cash (BCH) developers in 2018.” Likewise, a representative for Wright told Bloomberg that “he will seek to stop the cryptocurrency community from referring to the original token as bitcoin because it doesn’t currently possess the attributes described in the research paper.” However, it’s not at all clear how he might hope to achieve those goals via the legal mechanism of a copyright.

As Gerard said, copyright has “no bearing at all” on the issue of someone giving their own work a name (i.e., “bitcoin”) associated with someone else’s work. “‘Passing off’ is the sort of thing that trademark law is intended to address,” Gerard added, “but copyright and trademarks are entirely separate things.”

Indeed, the U.S. Copyright Office states in its May 22 press release that it “does not have an opposition procedure for copyright registrations, such as the procedures available at the Patent and Trademark Office for patents and trademark registrations.” And make no mistake, copyright is not the same thing as a trademark, which, as the Copyright Alliance explained, differs from a copyright in that “it’s a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others.” By contrast, copyright covers “the right to reproduce the work, to prepare derivative works, to distribute copies,” and so on.

In other words, Wright would need to register “bitcoin” as a trademark in order to prevent other groups and individuals from using this name with their cryptocurrencies and from passing them off as the “true” bitcoin. And it is not entirely certain if his new copyright claim is even registered because, as the Copyright Office has stated elsewhere on its website, “Copyright does not protect facts, ideas, systems, or methods of operation, although it may protect the way these things are expressed.”

Put differently, copyright protects the particular form in which ideas are expressed rather than the ideas themselves. As such, even if Wright could somehow prove his identity as “Satoshi Nakamoto,” there’s still a good chance that he’d fail to sue anyone else for violation of copyright. This is because unless any potential defendant copies the bitcoin white paper or 0.1 source code word-for-word, there’s unlikely to be any real ground for establishing that a cryptocurrency harnessing similar principles to the original bitcoin is a copyright violation.

Where now for Craig Wright?

Craig Wright’s copyright claim is effectively incapable of working as proof of origin or of acting as a means of silencing his critics. Though the bitcoin SV rally on May 21 would suggest that the copyright claim has actually had some effect, the fact that BSV rose by 110% within only one hour raises some serious doubts as to its grassroots legitimacy.

Still, there is one thing Craig Wright has succeeded in, even if most people within the crypto community still don’t believe he’s Satoshi: He continues to keep himself in the public eye, ensuring that the media continues to write about him. As Song said, “CSW does things for publicity and public manipulation. I’m guessing that since his attempts at fraud using cryptography have done so terribly, that he’s trying to use the court system to force people to accept him as Satoshi.”

The question is, where does Wright go from here? It’s highly unlikely that he’ll follow through with his new copyright claim and actually sue the developers behind BTC or BCH. If he does, he’ll be forced to prove that he is Satoshi Nakamoto, and if he fails to prove this in court, he’ll be at risk of prosecution for fraud (given his filed claim).

What’s more likely is that he’ll continue doing what he does: threaten his belittlers with legal action, without taking his chest-thumping much further. And even if the new copyright adds a little more weight to the legal threats, most commentators believe nothing much will change as a result of them. As Jimmy Song concluded, “Much like his previous attempts, I predict complete and utter failure.”

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Copyright Registrations Do Not Recognize Craig Wright as Satoshi Nakamoto

Copyright registrations for the Bitcoin white paper and the bitcoin (BTC) source code by the U.S. Copyright Office do not mean that Craig Wright is recognized as Satoshi Nakamoto.

Copyright registrations for the Bitcoin white paper and the bitcoin (BTC) source code by the United States Copyright Office do not mean that Australian computer scientist Craig Wright is recognized as Satoshi Nakamoto by the government, the Financial Times reported on May 22.

The development follows news that Wright filed copyright registrations for the Bitcoin white paper authored under the pseudonym Satoshi Nakamoto. A news release from May 21 claims that U.S. officials received confirmation that Wright is indeed Satoshi Nakamoto, but the news has been met with skepticism from the crypto community.

A spokesman for Wright told the Financial Times that “the registrations issued by the U.S. Copyright Office recognize Wright as the author — under the pseudonym Satoshi Nakamoto — of both the white paper and code,” claiming the Office to be the first government agency that recognizes Wright as the creator of the leading digital currency.

However, the claim has no basis in reality as when the Copyright Office receives an application for registration, it does not investigate the truth of any statement made in that application, nor the identities of people registering for copyright. The Office told the Financial Times:

“In a case in which a work is registered under a pseudonym, the Copyright Office does not investigate whether there is a provable connection between the claimant and the pseudonymous author.”

Moreover, the registering the source code does not protect the intellectual property of bitcoin as an invention.

The Copyright Office can cancel a registration application if it is certain that presented information is a false claim and the person claiming to be the author of a work is in actual fact not who they claim they are.

Recently, a scandal around bitcoin SV (BSV) — the altcoin backed by Wright —  placed Wright  at the center of international attention when cryptocurrency exchanges began delisting the coin amid Wright’s campaign to deanonymize one of his critics, so called Hodlonaut.

Hodlonaut targeted the Australian businessman with offensive tweets, calling him “a very sad and pathetic scammer. Clearly mentally ill,” and allegedly participated in creating the #CraigWrightIsAFraud hashtag.

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Craig Wright Copyrights BTC White Paper, Bitcoin SV Soars 90%

Craig Wright, the famous frontman of Bitcoin SV, also known as a self-assumed
Satoshi Nakamoto, has filed documents to patent the ownership of the original
BTC code and the white paper made by Satoshi Nakamoto

Perhaps, the second highly notorious person in the crypto industry after John McAfee, Dr Craig Wright, has found a way to attract even more attention than when he was suing major crypto figures. This time, he decided to act using the global system of patents.

A mere registration is seen as a victory

The news was reported by CoinDesk on Tuesday. Craig Wright has indeed filed registration documents to the US Patent Office. This does not mean that he has actually received any particular patents. The process of patent registration is rather a part of preparation for legal suits that may arise while the submitter tries to prove his right for the patent, says CoinDesk.

The first application to the Patent Office was regarding Satoshi Nakamoto’s white paper. The second one – regarding the original Bitcoin code.

Why the copyright registration matters to Dr Wright

Jimmy Nguyen, the head of bComm Association, an organization that largely supports Bitcoin SV and Craig Wright, said in the press release that he and his colleagues are thrilled by Wright filing these patent registrations, which can finally prove to the world that he is the original Bitcoin maker.

The copyright office sees patent registration
as a weapon to use in court against opponents, as per CoinDesk.

Bitcoin SV surges to the moon

Whether Craig Wright will succeed or not, Bitcoin SV investors are already making more than healthy profits – several hours ago, when the news just appeared, Bitcoin SV spiked over 90%, as per CoinMarketCap. It even managed to replace Tron on position #11.

Source: CoinMarketCap.com

However, now the excitement seems to have gone down a little and BSV is now showing a slightly under 55% rise. And Tron is back in spot #11, while Bitcoin SV is trading in position #12.

Source: CoinMarketCap.com

The post Craig Wright Copyrights BTC White Paper, Bitcoin SV Soars 90% appeared first on Ethereum World News.

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Self-Proclaimed Satoshi Craig Wright Files US Copyright Registrations for BTC White Paper

Court documents show that the Wright has filed registrations with the U.S. Copyright Office.

Craig Wright has filed United States copyright registrations for the Bitcoin (BTC) white paper authored by Satoshi Nakamoto.

Court documents show that the U.S. Copyright Office has registrations with Wright as the author of the white paper, as well as most of the original code used to build Bitcoin.

The Australian entrepreneur has long claimed to have written the cryptocurrency blueprint under the pseudonym.

news release from May 21 claims that U.S. officials have received confirmation that Wright is indeed Satoshi Nakamoto, but the news has been met with skepticism from some crypto commentators.

Jerry Brito, executive director at non-profit organization Coin Center, tweeted:

“Registering a copyright is just filing a form. The Copyright Office does not investigate the validity of the claim; they just register it. Unfortunately there is no official way to challenge a registration. If there are competing claims, the Office will just register all of them.”

According to the news release, Wright is making moves to establish himself as Bitcoin’s creator “after being dismayed to see his original Bitcoin design bastardized by protocol developer groups.”

It is believed that Wright is planning to assign the copyright registrations to the Bitcoin Association.

The businessman is currently the chief scientist at a startup known as nChain. The entrepreneur has been known for attracting controversy, with major crypto platforms recently beginning to boycott bitcoin sv (BSV,) the fork of bitcoin cash (BCH) which he backs.

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CZ Reveals that 65% Of The Community Would Donate to an “Anti Craig Wright” Charity Fund

Blockchain

Although this may not be news to most of you, Craig Wright does not seem to enjoy the sympathy of crypto enthusiasts and a recent survey by Binance CEO CZ may prove this: Nearly 70% of the CT community answer the poll saying they are willing to donate to an “Anti CSW Fund”.

CZ is creating a Fund to help those sued by Craig Wright
Craig Wright

Craig Wright, who has repeatedly claimed to be Satoshi Nakamoto, is known in the community for not been able to prove his allegations. In fact, various important personalities in the community such as Roger Ver, John McAfee, Vitalik Buterin and websites such as Wikileaks have called him a fraud because of that.

This apparently hurt Wright’s feelings, as he started a series of lawsuits against those who question his words.

The first affected was Hodlnaut, a Twitter account known for promoting the Lightning Torch initiative. Despite being an anonymous account, Coingeek (Website owned by Calvin Ayre, BSV promoter and head of CSW) offered a reward to whoever identified the account administrator, starting a manhunt that led this misterious character to close his twitter profile.

CZ: Enough is Enough

Faced with this situation, CZ, known for taking a neutral stance in this type of conflicts, took part, threatening to delist BSV from his Exchange, a move that the community applauded. CSW continued so Binance and other exchanges met their promise.

However, CSW’s threats reached not only people with a lot of money. They also damaged individuals and small businesses which in most times may not be able to afford the legal costs associated with a judicial process such as the one CSW intends to start.

Thinking of this group, CZ surveyed his followers to find
out if they would help those damaged by CSW’s actions. The response was
overwhelming:

After knowing the public’s stance, CZ went ahead with his
initiative, explaining that because of transparency reasons, donations would be
delivered to a lawyer properly verified by his organization, adding that upon
completion of the litigation, the remaining funds would be returned to Binance
for redistribution to other charitable initiatives.

CZ even pledged to donate 10k to this cause.

Craig Wright Just Loves Lawsuits

So far it is not known whether CSW will continue with his demands. For now, the lawyer seems to be very busy with a a lawsuit against him filed by the sister of his former partner Dave Kleiman, who accuses him of having taken advantage of Mr. Kleiman’s death to seize 1.1 Million Bitcoins.

The court, which previously denied CSW’s attempts to dismiss the lawsuit, ordered CSW to provide a list of the BTC wallet addresses handled by him.The judge said:

“On or before May 15, 2019, at 5:00 p.m. Eastern time, Dr. Wright shall produce all transactional records of the blind trust, including but not limited to any records reflecting the transfer of bitcoin into the blind trust in or about 2011. The production shall be accompanied by a sworn declaration of authenticity.”

Also, recently it came out that some of the emails promoted by Mr. Wright could have been a forgery according to what a cybersecurity expert told the court. Although the research was extensively explained by the expert, a Reddit user may have a simple explanation:

The post CZ Reveals that 65% Of The Community Would Donate to an “Anti Craig Wright” Charity Fund appeared first on Ethereum World News.

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US Court Orders Craig Wright to Provide Bitcoin Ownership Records

A U.S. court issued an order for self-proclaimed Satoshi Nakamoto Craig Wright to produce a list of his bitcoin public addresses as of the end of 2013.

The United States District Court of the Southern District of Florida issued an order on May 3 requiring self-proclaimed Satoshi Nakamoto Craig Wright to produce a list of his public bitcoin (BTC) addresses.

The order is part of an ongoing case against Wright filed by the estate of computer scientist David Kleiman, which claims that Wright stole hundreds of thousands of BTC. The coins were worth over $5 billion dollars in February last year, when Kleiman’s estate first sued Wright.

The order illustrates a number of the plaintiffs’ requests. They ask the court to order Wright to produce a list of the public addresses of bitcoin he owned as of Dec. 31, 2013, make him identify all bitcoin allegedly transferred to a blind trust in 2011 and produce documents related to said trust.

Further, the plaintiffs also ask the court to order Wright to identify under oath the identity of the current and past trustees and beneficiaries of the trust. The last request is to “permit further deposition of Dr. Wright with regard to his ownership and control over bitcoins.”

The document also specifies that the court has reconsidered its order on Wright’s previously filed motion to seal information regarding his bitcoin holdings. In addition to denying Wright’s motion regarding the list of bitcoin addresses, the court order states:

“On or before May 15, 2019, at 5:00 p.m. Eastern time, Dr. Wright shall produce all transactional records of the blind trust, including but not limited to any records reflecting the transfer of bitcoin into the blind trust in or about 2011. The production shall be accompanied by a sworn declaration of authenticity.”

As Cointelegraph reported at the end of last year, a U.S. court has already rejected repeated requests from Wright to dismiss the Kleiman case.

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Stablecoins, Explained

Volatility in crypto prices have been regarded as a big hurdle for mainstream adoption. Stablecoins could be a way of eliminating such erratic fluctuations.

Can stablecoins achieve true decentralization?

Certain providers believe they have struck a compromise.

Some stablecoin advocates are concerned that pegging a cryptocurrency directly to the U.S. dollar means that it must inevitably have ties to the U.S. banking system. This means that they have to rely on a centralized infrastructure — something Satoshi Nakamoto wanted to avoid when he set out his vision more than a decade ago.

Equilibrium says it has managed to address this pitfall by ensuring that its stablecoin, EOSDT, is overcollateralized above 170 percent. This is achieved by ensuring that one unit of EOSDT is equal to $1. The company says its framework delivers “the world’s first decentralized collateral-backed stablecoin built on the EOS blockchain” and addresses concerns surrounding safety and scalability.

At present, only EOS can be used as collateral, but the platform hopes to evolve into a cross-chain solution and accept a basket of multiple cryptocurrencies as collateral in time.

With new stablecoins launching all the time, and trading volumes on the rise, this is a segment of the crypto industry that could grow further in the coming years. Undoubtedly, new use cases will emerge along the way — potentially offering a temptation to consumers who have been reluctant to use virtual currencies so far.

Learn more about Equilibrium

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Who else is issuing stablecoins?

Everyone — from banks to social networks — is getting in on the action.

Even though JPMorgan Chase’s CEO appeared to call bitcoin a “fraud,” the U.S. bank recently unveiled plans to launch a stablecoin to speed up settlement times when transactions are taking place internationally.

Although some crypto commentators regarded the financial giant’s step as a ringing endorsement of stablecoins’ potential, others — such as the CEO of Ripple — attacked the “JPM Coin” for a lack of interoperability, which means that other banks would be unlikely to embrace the technology. Anthony Pompliano, the founder of Morgan Creek Digital Capital, went one step further — using his podcast to warn that “we should do everything in our power to prevent” JPMorgan Chase from succeeding, as it would mean trusting a Wall Street bank “that was previously charged with a felony.”

Elsewhere, IBM has launched its blockchain-powered World Wire in collaboration with Stellar (issuer of XLM) — also with the goal of building a cross-border payments network. Here, international banks can create their own stablecoins backed by their local fiat currency — and institutions from Brazil, South Korea and the Philippines have reportedly registered their interest so far.

We couldn’t wrap up without mentioning Facebook, which has reportedly hired dozens of engineers to develop a fiat-pegged stablecoin that users could rely on for paying their friends and family around the world. This could help the social network send shockwaves through the remittance industry by enabling foreign workers to transfer money with lower fees. The “Facebook Coin” could be a blessing for the embattled company as it tries to shake off privacy scandals and find sources of revenue beyond advertising. According to CNBC, one analyst believes the stablecoin could deliver an additional $19 billion in revenue by 2021, if the plans are pulled off.

Are stablecoins without controversy?

No — and this in part is because of transparency issues that have emerged.

Tether is one of the best-known stablecoins that has attracted controversy for several reasons in recent years. A study by academics claimed that the coin was used to “manipulate cryptocurrency prices” during the boom of 2017, with researchers even claiming that half of bitcoin’s price in December of that year was attributable to the stablecoin.

There have also been questions raised about whether Tether has enough dollars in reserve to collateralize all of its stablecoins — however, an unofficial audit in June 2018 appeared to confirm that its reserves were in order. Alarm bells were also ringing for some crypto enthusiasts in March 2019, when Tether appeared to dilute claims that its stablecoin was fully backed by U.S. dollars.

Other stablecoin advocates — such as Jeremy Allaire of Circle, which launched USDC back in autumn 2018 — have called for an “open standard that many companies can implement.” He added that greater levels of self-governance would give peace of mind to users, help tokenize the global economy and result in a joined-up ecosystem for the crypto industry that would pose a more compelling alternative to fiat.

Other critics argue that the existence of stablecoins have the potential to undermine normal cryptocurrencies, which have been working hard to develop their own economy and accrue value for many years. And, although they are meant to act as a safe haven for crypto consumers, the fact that pegged stablecoins will offer little to no financial gain is likely to be regarded as a major downside by some.

Why have they become so popular?

Because they eliminate uncertainty for consumers — especially around conversions.

They offer the type of predictability that many countries struggle to achieve with their national currencies — hence why Venezuela, battling hyperinflation and political instability, decided to launch its own cryptocurrency.

Stablecoins give owners a safe place to store their assets whenever there are choppy waters in the crypto world. Consumers can quickly and easily convert from unpegged cryptocurrencies to stablecoins when they are worried about where the markets are heading next, eliminating the need to return to a fiat currency. These conversions can also be less expensive than when switching between crypto and fiat, as it takes the transaction fees of payment processing providers and banks out of the equation.

At the start of April, tether achieved an all-time high of daily transactions — and according to CoinMarketCap, the stablecoin is even nipping at the heels of bitcoin, with reported trading volumes of $9.4 billion compared to BTC’s $10.2 billion.

Part of the stablecoin’s burgeoning popularity may also be down to how crypto exchanges, the main point of access for many consumers, are starting to get in on the action — raising awareness. It was recently announced that OKEx, the sixth-largest exchange, was planning to launch its own stablecoin. And Binance, the world’s largest exchange, has been aggressively expanding the trading pairs it offers. In November, it rebranded its Tether (USDT) Market to the Stablecoin Market — and subsequently announced it would list a broader range of stablecoins. Explaining its rationale in a January blog post, Binance said: “In the last few months, the stablecoin space has evolved very quickly.”

So, how do they work?

As the name suggests, stablecoins are designed to have a consistent price or value over time.

There are three different ways of achieving this — delivering a happy medium between offering the stability of fiat currencies and the decentralized benefits that virtual currencies provide. Without stablecoins, taking out a loan while using crypto as collateral can be risky, as the assets used to secure your borrowing can be rendered worthless in a short space of time. Likewise, imagine what getting your salary in crypto would be like if prices were to tumble unexpectedly. In the real world, it would be like suddenly finding out that milk has ballooned in price from $1 to $3, meaning your money goes a lot less further.

The first type of stablecoin is collateralized by fiat. For every single stablecoin issued, $1 is kept safely by a central custodian such as a bank. This means that, in theory, you should be able to exchange between the two effortlessly without great expense. In other cases, commodities have been touted as a way of collateralizing crypto, with Venezuela’s government unveiling plans to launch the petro — a coin that’s value was to be tied to one barrel of oil. Alas, the petro’s launch was long delayed and, as Cointelegraph reported, it faced mixed success.

Next, you have stablecoins collateralized by crypto. “But wait!” I hear you cry. “Doesn’t this mean that price volatility is still possible?!” To an extent, yes — but some providers try to tackle this issue by “overcollateralization,” meaning $2 worth of crypto is deposited with a custodian for every $1 of a stablecoin. This can help to keep decentralization alive, with crypto reserves absorbing the impact of any fluctuations, but a downside is that huge amounts of capital can be required to get them off the ground.

Last, there are noncollateralized stablecoins, which do away with the idea of having reserves altogether. These types of assets see smart contracts take on a role not too dissimilar to a reserve bank. They monitor supply and demand — buying circulating coins when prices are too low and issuing new ones when prices are becoming too high. The ultimate goal is to keep prices in line with that of a pegged asset such as the U.S. dollar.

No matter what type of method is used, it is worth noting that stability is more of an aim than an inseparable feature.

What are stablecoins?

Stablecoins are a new type of cryptocurrency that have their value pegged to another asset.

These coins can be pegged to fiat currencies such as the United States dollar, other cryptocurrencies, precious metals or a combination of the three. Fiat seems to be the most popular option in the marketplace right now, meaning one unit of a stablecoin equals $1.

Stablecoins are designed to tackle the inherent volatility seen in cryptocurrency prices. They are normally collateralized, meaning that the total number of stablecoins in circulation is backed by assets held in reserve. Put simply, if there are 500,000 USD-pegged coins in circulation, there should be at least $500,000 sitting in a bank.

With bitcoin suffering abrupt crashes and sudden gains, advocates believe stablecoins help eliminate doubt about conversion rates — making cryptocurrencies more practical for buying goods and services.

Examples of the best-known stablecoins include tether (USDT), trueUSD (TUSD), gemini dollar (GUSD), and USD coin by Circle and Coinbase (USDC). Demand for such coins has been growing. In December, Cointelegraph reported claims that four major stablecoins had clocked up $5 billion in on-chain transactions within just three months — enjoying a 1,032% surge in November compared with two months earlier.

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Bitcoin (BTC) Founder, Satoshi Operates from The Eastern Coast of USA, Sleep Pattern Analysis Reveal

Bitcoin BTC

It’s all about Satoshi Nakamoto. The brains behind the world’s most valuable coin in Bitcoin. Exchanging hands at $5,423 and with a daily trade volume of $19,123 million while commanding a market cap of $95,792 million, everybody—even governments and detectives, but more so the blockchain and Bitcoin community want to know who the genius was. Despite efforts and countless hours of detective work, Satoshi has been largely successful in becoming elusive. Fortunately, determined blockchain “detectives” are closing in and Jameson Lopp believe Nakamoto is an individual who coordinated his activities from either the East Coast of the US or From Western South America thanks to his standard sleeping patterns.

We Need Decentralization

Even so, it is for good reasons.
Considering the level of decentralization minus reference figure heads that
other networks so heavily rely for guidance, the absence of Satoshi is indeed a
good thing for the autonomy of the network. After all, before he disappeared, he
kind-off handed over “powers” to early adopters like Gavin Andresen and other developers
he worked with, believers of what he was doing, of what technology represents
and what it meant to roll out a solution that will decentralize the way money
moves around without third parties.

All the same, Jensen has deviated from Satoshi
Vision supporting a splinter group in Bitcoin Cash which recently hard forked
to Satoshi Vision under the guidance of Craig Wright, a controversial and vocal
supporter claiming to advance Satoshi’s ambition.

Factoring in John McAfee Claims

Nonetheless, detectives like John McAfee
are back. John is perma-bull, a technologist and a founder of a successful
antivirus firm widely used across the globe. But that won’t stop him from being
controversial as he has had a few brushes with the law forcing him to operate
from the Bahamas.

 A
few days back, he claimed to know who Satoshi was and as a matter of fact,
would “out” him. That, apparently didn’t go well with Satoshi—whom he claims to
be in contact with. John says Satoshi is furious and unhappy at his efforts to
uncover him, ten years after the first block went live.

Even if this is true, it will no doubt
promise to be a cinematic and even a riveting sequence of events as the whole thing
unfolds. Pinning Satoshi means unlocking the 1 million BTCs under his custody
and that means there is a possibility that all these coins would be somehow
spent, heaping pressure on Bitcoin prices reeling from 13-month slide. Here’s
what John said when he talked with Bloomberg:

“I’ve spoken with him, and he is not a happy camper about my attempt to out him. People forget that I am a technologist. I am one of the best. Releasing the identity of Satoshi at this time could influence the trial and risk my extradition. I cannot risk that. I’ll wait.”

Jameson Lopp Findings

However, new analysis from Jameson Lopp, a cyberpunk and the
CTO of CasaHODL, reveal that Satoshi Nakamoto is an individual—not a group, a
male living either in the US or South America. His study reveal that that
person is not Craig Wright—because at the time, Craig operated from Australia. This
was brought to light thanks to an in-depth study of his sleeping patterns because
after all, timestamps tell a story. Here’s what he tweeted:

“If you assume
standard sleeping patterns then it appears Satoshi resided in eastern North
America or western South America while Wright’s posts line up with eastern
Australia.”

And he Lopp has support from other curious observers:

“You don’t even have
to *assume* standard sleeping patterns for Craig. He lived in Australia during
this time, and the data *shows* he had a fairly standard sleeping pattern.”

The post Bitcoin (BTC) Founder, Satoshi Operates from The Eastern Coast of USA, Sleep Pattern Analysis Reveal appeared first on Ethereum World News.

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Bloomberg: John McAfee Pauses Plan to Out Satoshi Nakomoto’s Identity, Fearing Lawsuit

John McAfee says he is holding back on plans to reveal the real identity of bitcoin’s creator for fear it will expose him to further lawsuits.

American entrepreneur and stalwart crypto advocate John McAfee says he is holding back on plans to reveal the real identity of bitcoin (BTC) creator Satoshi Nakamoto, for fear it will expose him to further lawsuits as he fights potential extradition to the United States. The news was reported by Bloomberg on April 24.

McAfee — who founded the pioneering anti-virus firm McAfee Associates in 1987 — claims his technology expertise has helped him track down the real Satoshi. According to Bloomberg, McAfee said he had communicated with Nakamoto in recent days, alleging that the mystery figure is in fact a man living in the U.S. He reportedly stated:

“My entire life I’ve been tracking people who are the best in the world, and hiding their identity. Finding Satoshi was a piece of cake for me.”

McAfee reportedly further noted that the alleged Nakamoto “is not a happy camper about my attempt to out him.” Bloomberg adds that while McAfee had at first told the news agency he would make his disclosure within a week, he is now holding back over concerns that the move could make him the target of multiple lawsuits.

Himself no stranger to controversy, McAfee has allegedly been indicted by the U.S. Internal Revenue Service (IRS) over self-avowed tax avoidance, and could thus face potential extradition from the Bahamas, where he currently resides.

In a tweet on April 23, McAfee said he was reluctant to wage a battle on multiple fronts, and would thus heed his lawyer’s advice to pull the brake on imminent plans to out Nakamoto:

“The US extradition request to the Bahamas  is imminent. I met with Mario Gray, my extradition lawyer, and it is now clear […] that releasing the identity of Satoshi at this time could influence the trial and risk my extradition. I cannot risk that. I’ll wait.”

As widely reported, Nakamoto’s sudden disappearance in late 2010 has spawned a myth almost as famous as the cryptocurrency he, she or they invented on October 31, 2008 with the publication of the bitcoin white paper.

Parallel to McAfee’s recent claims, controversially self-proclaimed “Nakamoto” Craig Wright has recently published a blog on April 23, alluding to the widespread criticism he has faced in regard to his position and vowing to continue to develop crypto innovations that will place his team “in advance of any other player in the industry”:

“By the end of this year I hope that we will have around 1,000 patents published […] As you have been hiding and calling me names, I’ve been building and creating.”

Bloomberg notes that McAfee told the agency that Wright is emphatically not the man he has tracked and identified as bitcoin’s creator.

As Cointelegraph has reported, McAfee is meanwhile also planning to run for president in the 2020 United States elections as part of his crypto advocacy efforts. In light of his ongoing legal battles, he has pledged to run his campaign in exile from a boat in international waters.

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Who is Satoshi Nakamoto? John McCafee Claims to Know And Provides 15 Clues to Narrow The Search Down

bitcoin fraud

Satoshi Nakamoto’s identity has perhaps been the best kept
secret of the whole crypto-verse. Since the creation of Bitcoin, the anonymous
character chose anonymity as a way to protect himself and his creation.

From the moment he decided to “move onto other things” the
community was in charge of the project. However, in the absence of a central
figure there have been certain conflicts and speculations, not only as
to which direction the project should best take, but who Satoshi Nakamoto
is (or was).

One of those who have claimed responsibility for creating Bitcoin is Craig Wright. This man claims to be Satoshi Nakamoto and recently filed a series of legal complaints against a group of media and people who don’t believe he’s telling the truth because he hasn’t been able to prove it so far.

This action provoked the irritation of much of the crypto-verse, from crypto users to truly influential people like CZ and John McAfee. While CZ got fed up with CSW’s toxic actions, calling him a fraud; John McAfee remarked that he is 100% sure that Craig Wright is not Satoshi Nakamoto:

The controversial tweet generated a lot of speculation in
the community. The only way McAfee could be absolutely sure Craig Wright
was lying is by knowing the real Satoshi Nakamoto.

John McAfee is not afraid of threats from Calvin Ayre and CSW, and he doesn’t seem to care if he gets “The Letter.” In the following tweets he continued criticizing CSW for not proving he is Satoshi. BSV got its part too.

However, the situation escalated the next day. McAfee left
nothing to the imagination and claimed to know the true identity of Satoshi
Nakamoto. The renowned cybersecurity expert then began a process in which he
would slowly offer clues about Satoshi’s true identity.

The first clue, if true, eliminates the leading conspiracy
theory, but explains that Satoshi Nakamoto is actually a kind of organization,
where several people had different responsibilities. Of this group, an American
(or at least one person living in the United States) was responsible for
writing the Whitepaper.

In the following tweet he said he is this practice until the author of the whitepaper revealed himself, or until the community could discover who he is, based on McAfee’s clues.

What We Can Conclude After reading John McAfee’s tweets
(both the ones on his TL and the replies provided to others):

Finally, McAfee concluded his first wave of “clues” with an epic ending, as always:

The post Who is Satoshi Nakamoto? John McCafee Claims to Know And Provides 15 Clues to Narrow The Search Down appeared first on Ethereum World News.