Editorial 15 August 2018

Cecille de Jesus

Dr. Craig Wright breaks down myths around Bitcoin: It’s a capitalist system, whether you like it or not

In a Medium post, nChain chief scientist Craig S. Wright listed down some myths about Bitcoin, along with clarifications for each point. Below are some of his points, but for those who want to read his full post, you can do so here.

Defining “peer-to-peer”

Wright clarifies that “peer-to-peer” refers to transactions between each person—it doesn’t mean everyone has to mine transactions. Wright says that what makes Bitcoin “peer-to-peer” is the fact that two users can transact with no “bank” through which a reversal can be issued. All users need are miners as the settlement layer.

“This is the difference that makes bitcoin peer to peer. Not that every person needs to be a miner, but that individuals can exchange transactions directly with each other and quickly verify that mining nodes have received the transaction,” he wrote.

He comments that several good wallets have been coming out lately, such as HandCash and Centbee. These SPV wallets (simplified payment verification) would help usher in mass adoption through front-ends that pass the “grandma test,” saying the UI aspects of Bitcoin has been neglected for a while.

Limitless scaling

nChain is one of the leading developing teams working on Bitcoin Cash (BCH), through which the original principles of Bitcoin are preserved. And as originally planned by Satoshi Nakamoto, Bitcoin Cash scales primarily by removing the temporary limit imposed back when Bitcoin was starting out.

Wright reiterates that Bitcoin, in fact, has no scaling ceiling.

“The truth of the blockchain when done correctly is that there is no scaling ceiling. The more use, the more profit, the better it scales and the less expensive transactions become. Bitcoin is incentivised to become the backbone system of the global Internet.”

Capitalist, whether you like it or not

He points out that one of the primary hindrances to scaling Bitcoin is the inability (or refusal) to accept that it is a capitalist system, and was designed precisely to be so.

“They [blockchains] were always designed to be commercial in nature. They were designed to be competitive. And they were designed as a monetary transfer unit. There is one and only one way for BitCoin, in fact any blockchain to function successfully, that is as a single unit with a primary focus on cash,” he explained.

“It works because capitalism is a system of competition. Bitcoin is purely competition driven. It does not matter whether you like this or not because bitcoin is apolitical other than being purely capitalist.”

He says it is this trust in the miners’ primary commercial and competitive interests that users rely on, not the trust in the miners themselves.

‘Anonymity’

There has been a tug-of-war between privacy and transparency for Bitcoin. While many fell in love with Bitcoin because of its pseudonymity, scammers, thieves, and criminals also use it to their advantage, leading to distrust and unease among the mainstream population. According to Wright, anonymity benefits ill-intentioned entities much more than it benefits common people.

“There is a fine line between privacy and anonymity and it is a line that cannot be crossed. What few understand is that anonymity is not privacy,” Wright wrote. “Anonymous transactions do not help the average person, they help corrupt governments and criminals.”

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB 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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