2023 will be the year that politicians, regulators and law enforcement finally stamp out the ‘layer 1’ fraud at the heart of ‘cryptocurrency’.
It’s time to dust off the crystal ball and play prophet for the coming year. Compared to this time last year, we see far fewer bulls predicting that the token will cross $100,000 in 2023. The few stalwarts who still struggle “to the moon” are mostly bottomless influencers whose credible audiences don’t handle pessimism well.
Never fitting into this evergreen camp of optimism is John Reed Stark, former Chief of the Internet Enforcement Office of the US Securities and Exchange Commission (SEC). Stark’s 2023 Predictions Read Like A Doctor Diagnosing Stage 4 Cancer: Increasing Regulatory Scrutiny, Strengthening Existing Securities Laws, Targeting Tax Evaders, Cryptocurrencies Like Binance And Tether Fraud of the Imposter (probably thanks to vicious revelations by Sam Bankman fried from).
The SBF’s lobbying efforts over the past two years have made US politicians, regulators, and law enforcement seem utterly stupid and asleep on a switch. Shameful politicians are unlikely to forget this insult. But getting revenge on SBF and his FTX/Alameda pals isn’t enough to quench their thirst for revenge. appear Take the role of oversight and consumer protection seriously.
Binance seems like a logical place for them to start their revenge tour. Notably, before Christmas, Binance US (which is said to be an independent, regulated US-facing business) made billions of dollars in transactions with wallets tied to Binance’s international wallets. operation, given the fact that they routinely transferred customer funds. Tether’s role in facilitating consumer-targeted cryptocurrency fraud is likely to come under further scrutiny in markets around the world, leading to calls for actual audits and inevitably escalating its reserves to very high levels. It will be published as vaporware.
Stark is right in his belief that a tidal wave of regulation is about to collapse over cryptocurrencies, but he has focused too much on “Layer 1” fraud, far too much for the money to be run by mainstream payment companies and Silicon Valley. Tech bros to support those overlooking damaging “Layer 2” scams. Only when this fraud is exposed and mitigated will the true promise of Bitcoin White his paper be realized.
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Given the law of gravity and reckless speculation that has plagued the sector since Bitcoin’s blocksize wars, crypto’s downfall in 2022 was inevitable. Bitcoin, which was intended as a low-fee peer-to-peer electronic cash system, has been mutilated by the developer of Bitcoin his core and its Blockstream his partner. As a result, the dysfunctional protocol known as BTC was forever condemned to stay there motionless under the billboard proclaiming “Digital Gold!” Rampant speculation and get-rich-quick schemes began in earnest shortly thereafter.
Satoshi envisioned Bitcoin processing a level of transaction surpassing Visa, which at the time was processing about 15 million online transactions per day. Instead, BTC he reached hundreds of thousands per day. This forced mutation of Bitcoin to his BTC has contributed to Blockstream’s profits, especially through “sidechain” projects such as Lightning and Liquid Network.
But there were higher powers at work here with their own agendas. As Kurt Wuckert Jr. has documented in great detail on this site, early Blockstream investor Barry Silbert’s Digital Currency Group (DCG) was born in 2015 by a group of major financial institutions, and is headed by Mastercard. played a leading role in his DCG’s initial fundraising.
Satoshi may have only referenced Visa in his trading predictions, but Mastercard clearly recognized the threat the original Bitcoin model posed to the credit giant’s comfortable duopoly. Featureless speculative digital beanie babies they could live with. What they couldn’t stand was a low-paying rivalry that promised serious benefits to both merchants and customers.
The credit giants have tried to hide their bad intentions by partnering with exchanges such as Binance to allow users to spend their cryptocurrencies on retail transactions via special debit cards. However, this is just an intermediary who earns a commission for converting cryptocurrency to fiat currency before the transaction is completed. Alone, BTC and other “digital pet rocks” are just as useless to conduct transactions as they have ever been.
BSV: Fatal Threat
When Dr. Craig Wright was exposed as Satoshi in 2015, the group that conspired to sabotage Bitcoin embarked on a new conspiracy to smear Wright from the public eye. Just as he returns and discovers that Penelope’s suitor has turned his home into Dionysus’ Keggar, Satoshi never reappears and wreaks havoc on those who have falsified his vision.
Efforts to undermine Wright’s influence gained new urgency with the arrival of Bitcoin SV (BSV) in 2018. BSV honored the original Bitcoin protocol through unlimited capacity for scaling blocks on the blockchain. Soon, BSV said he started processing millions of transactions in a single block and, as Satoshi promised, tens of millions of transactions per day.
The Mastercard/DCG/Blockstream cabal quickly unleashed an army of keyboard warriors and, with the active backing of the well-funded Twitter and Facebook founders, viewed Wright as a fraud and, in turn, BSV as a fraud product. rice field. Arguably, this was a coordinated and concerted effort to strangle BSV in the crib before the promise of fulfilling Satoshi’s vision took root in public consciousness.
This is the “Layer 2” scam we talked about earlier. “Tier 1” scammers have caused enormous damage to millions of retail investors around the world, but their damage is nothing compared to the damage “Tier 2” fraud has done to society as a whole. The damage is negligible. Because this massive scam threatens to hinder progress in the form of his Web3 project, which allows individuals to wrest control of their online data from today’s her Web2 giant and the payment infrastructure that supports it. is.
BSV has demonstrated the ability to enable millions of nanopayments for fractions of a cent, allowing BSV to take advantage of the exponential growth of IP addresses brought about by the introduction of the IPv6 standard It is the only blockchain.
The fact that BSV is the only blockchain capable of handling all this extra internet traffic is why the Institute of Electrical and Electronics Engineers (IEEE) welcomes Dr. Wright’s input, and the IPv6 Hall of Fame recently That’s why we inducted Dr. Invaluable contributions to the development and deployment of IPv6.
The financial giants and their Web2 allies don’t want you to know this. That’s why they’re using the courts to try to unbalance Wright and damage his reputation. Thankfully, Wright and his BSV are made of sturdier materials.
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The success of the attack on Wright is reflected in the widely believed perception that Wright was an instigator in the lawsuits involving him. Ira Kleiman, brother of Wright’s deceased friend/colleague Dave Kleiman. Ira tried (unsuccessfully) to enrich herself with the sweat of others. Specifically, he claimed ownership of Bitcoin mined by Wright shortly after the technology’s debut in 2009.
Wright is/was involved in two defamation cases. One was brought against Wright by Norwegian Twitter troll Magnus ‘Hodlonaut’ Granath. Although a plaintiff in a defamation lawsuit against McCormack, Wright filed the lawsuit after McCormack literally begged him to do so via a series of inflammatory Twitter posts.
Wright was the (successful) plaintiff in a Bitcoin white paper copyright lawsuit against anonymous Twitter troll Cobra. Mr. Wright, who attempts to deny being the author of the white paper, is a defendant in a lawsuit brought by the Crypto Open Patent Alliance (COPA). COPA, made up of Blockstream, Mark Zuckerberg’s Meta, Jack Dorsey’s Block, Michael Saylor’s Microstrategy, Coinbase and Kraken exchanges, is determined to keep the speculative token-flipping model alive by crushing BSV. There are countless exchanges that are
It is believable that the “not your key, not your coin” crowd, who preach the doctrine of self-ownership, are eager to accuse Wright of defending the authors of the white paper. I don’t think it’s ironic. Or that they will be amazed at how vigorously he defends himself against public vulgar attacks on his character.
Wright is a plaintiff in a lawsuit filed against a number of blockchain developers and has obtained 111,000 bitcoins, private keys stolen from him in a computer hack in 2020. But his lawsuit will allow these developers to exercise a “high level of authority and control” over their respective chains, and help theft victims recover their stolen property. It is intended to convince the court of fiduciary duty (sufficient evidence of theft for the court to issue a court order).
In other words, Wright seeks to set a precedent that those who control blockchains have similar obligations to mainstream financial institutions. Bitcoin’s original design included an “alert key” to notify Bitcoin he miners to freeze stolen assets, but this was permanently removed by the developers of his BTC core. has been disabled.
Again, I find it incredible that Wright is being dragged through the mud. Simply because he’s trying to drag this industry out to scream and kick at something akin to common law compliance. I strongly suspect that whenever governments around the world are forced to choose between “code is law” and “law is law,” they will always side with Wright’s view.
road ahead
Yesterday’s drop in crypto king fortunes means less discretionary money to pour into minnows like Granath and McCormack, so I think Wright will be forced to endure these nasty lawsuits in 2023. COPA will also struggle to maintain a united front, as their respective businesses struggle to survive the “crypto winter” (which won’t be over anytime soon).
The days of “more and more” really seem to be gone. 2022 has revealed so much criminal activity at the heart of this fluent economy that it’s almost guaranteed that public money (i.e. suckers) will not flow in again in the near future. . And without a steady stream of new money, Ponzi schemes cannot survive. Good hassle.
The current cryptocurrency model, which has remained influential ever since Bitcoin was forcibly converted to BTC, is a centralized exchange that acts as a casino, created by “gamblers” and non-scalable platforms. We encourage endless flipping of non-functioning tokens. BSV’s scaling ability allows both real-world fragmented utility and security tokens all on-chain, making most of the current cryptocurrency industry completely redundant. No wonder all these forces converged to smear Wright and reduce the visibility of BSV.
The collapse of these long-running scams is nearing as regulators, politicians, and law enforcement finally wake up to the scammers who prey on consumers. Even better, this dwindling herd will help the market understand what BSV is all about. In short, a regulation-friendly, legally compliant blockchain that can serve as both the backbone of the Web3 revolution and a green data storehouse. A little late in my opinion, but better than never late.
Buckle up, folks. 2023 will be an unforgettable year.
PS: If you would like to discuss any of the above, join us at the London Blockchain Conference from 31st May to 2nd June 2023 at the QE II Center in London. Let’s enjoy a beer as we talk about how Craig Wright, Stefan Matthews and I saved Bitcoin in his 3-day strategy session in 2015. Lord of the Ring But we need one chain to rule them all. )
Watch: London Blockchain Conference 2023 Moves Government to Blockchain
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