In a series of tweets, Vitalik Buterin, co-founder of Ethereum, made his disapproval of Bitcoin Cash ‘Satoshi’s Version’ (BSV) known, calling the new hard fork of Bitcoin Cash (BCH) a “pure dumpster fire.” Buterin’s comments were made in an online Twitter debate with cryptocurrency commentator and businessman Tuur Demeester on Christmas Day.

In the discussion, Buterin debated on the merits and demerits of Proof-of-Work (PoW) and Proof-of-Stake (PoS), two algorithms used by cryptocurrency developers in building their assets. When piqued for his opinion on Bitcoin SV, Buterin tweeted:

Vitalik Buterin Does Not “Believe in Proof-of-Work”

Buterin also made his disdain for PoW known in the discussion, at one point declaring that he no longer believes in the algorithm, but he, however, remains optimistic about the kind of technology that is being developed. Sadly, he doesn’t share the same sentiment for Bitcoin SV, which claims to have been created in line with the original vision set by Bitcoin’s core developers.

Bitcoin SV and Bitcoin ABC were both forked out of Bitcoin Cash (BCH) on November 15, 2018. BSV was developed with the goal of solving the mounting scalability issues of Bitcoin “on the chain” by making use of giant block sizes. However, ever since its inception, it has continued to face various publicity and technical issues.

It hasn’t been all sunshine and rainbows for Bitcoin SV. The other half of Bitcoin Cash’s hardfork has had its fair share of troubles, particularly with mainstream adoption and integration. At press time, it’s trading for $85.13 with a total market cap of $1.49 billion; the altcoin is yet to be listed on popular crypto exchanges, including Gemini and Coinbase.

Although the hard fork that created BSV has been responsible for major rifts between crypto investors, both it and Bitcoin Cash ABC continue to have strong support behind them.

Buterin has previously called Craig S. Wright a “fraud” to his face at an event.

Earlier this month, Buterin made investments in three different startups, donating 1,000 ETH tokens each to the startups, who are working on the development of Ethereum 2.0. The donations were inspired by a conversation involving Ethereum developers who complained about the lack of funding for projects that could contribute to the ecosystem.

Credits to Jimmy Aki

A U.S. federal court has largely denied crypto entrepreneur and self-proclaimed bitcoin inventor Craig Wright’s attempt to dismiss a lawsuit alleging that he misappropriated billions of dollars’-worth of bitcoin from the estate of a former business partner.

Wright is being sued by Ira Kleiman on behalf of the estate of his brother, the late Dave Kleiman, a forensic computer investigator and author, who passed away in 2013 following a battle with MRSA.

The suit accuses Wright of scheming to “seize Dave’s bitcoins and his rights to certain intellectual property associated with the bitcoin technology,” and is seeking return of a good portion of the 1.1 million bitcoins (worth roughly $3.9 billion as of press time) mined by the two, or its “fair market value,” as well as compensation for IP infringement.

Wright, the controversial cryptographer who has claimed to be bitcoin’s creator, Satoshi Nakamoto, filed a motion in April of this year to dismiss the case.

However, a court document filed in the southern district of Florida on Thursday reveals that most counts of Wright’s motion have been denied.

Of particular note, the order states:

“Here, the Court finds that Plaintiffs have sufficiently alleged a claim for conversion. The Amended Complaint alleges that Defendant converted at least 300,000 bitcoins upon Dave’s death and transferred them to various international trusts, which was an unauthorized act that deprived the Plaintiffs of the bitcoins therein. Accordingly, Plaintiffs’ claim for conversion (Count I) survives Defendant’s Motion to Dismiss. “

Elsewhere in the document, the court states that the exact number of bitcoin involved is yet to be determined, but the estate contends that it is “entitled to at least 300,000 bitcoins, along with their forked assets.”

The estate’s claim for constructive fraud also survives the motion to dismiss, it adds.

Wright’s motion did, however, succeed on the claim that counts III and IV over misappropriation of “trade secrets” were not valid, as the three-year statute of limitations in Florida had been exceeded.

The order indicates that the plaintiffs stated that they were aware of Wright’s conduct on April 22, 2014, adding: “Even if they did not know the extent of the harm, upon learning of the Defendant’s conduct from the ATO auditor, the Plaintiffs should have discovered the Defendant’s misapplication of the trade secrets through the ‘exercise of reasonable diligence.’”

https://www.scribd.com/document/396447343/Order-on-motion-to-dismiss

Credits to Yogita Khatri

At long last after two-and-a-half years of negotiations in a painful process that can only be described as watching a slow-motion train wreck, a Brexit deal has been struck–a tentative one, at least. However, instead of cracking open the champagne, the pound has tumbled against the dollar, ministers are resigning left and right, and Theresa May’s position looks more uncertain than ever.

In a lose-lose deal all round that bears all the hallmarks of the economic woes on the nearing horizon, there is no one celebrating what constitutes a ruthlessly brutal losing position for the UK. Rather like the growing hash war, factional fighting, and uncertain outcome of Bitcoin Cash and the crypto market in general.

The remainers remain indignant, and the die-hard Brexiteers who voted to leave the EU feel betrayed. They’re far more likely to lose from this deal than had they decided to keep the status quo–something vaguely reminiscent of the Bitcoin Cash fiasco.

A Raw Brexit Deal All Round

However, the UK’s decision was doomed to failure from the very start. Revealing its weak hand from the beginning, and lead by a negotiator about as convincing as a US ex-President uttering “I did not have sexual relations with that woman.”

Indeed, the draft deal denies Brexiteers the illusion of a quick clean break from the EU and the notion that a new trade deal would be in place by 2019.

Although it has to be said, those who were under the illusion that Britain had any cards to play in this hand were clearly deluded.

Unwinding nearly four decades’ worth of trading, economic and legal ties was never an easy task. And Mrs. May handled it with all the grace and dexterity of an elephant dancing the Nutcracker. She leaped from one calamity to another making onlookers wince at the carnage.

Had she hoped to divide the 27 countries participating in the EU block she was sorely disappointed. The Brussels negotiations led by Michel Barnier made it clear from the start that the UK would not be able to “cherry pick” benefits with each separate member.

If those who voted to leave really believed that the UK could carry on in harmony with the EU and the government and the public could get over their divisions, they were living in a fantasy world.

When you have factions opposed to an upcoming action, it does not bode well for the outcome, for peace, or for the markets, whether traditional or crypto.

The Economic Implications of the Deal

Against this gloomy backdrop that only goes to show how inferior the deal of leaving is to remaining, the UK will be separated from its most important trading partner. The country will have less say than ever before on key policy. And the economic consequences could be described as disastrous at best.

The divorce settlement will cost the UK an eyewatering €40bn-45bn. There will be a 20-month standstill transition period that will only serve to fuel uncertainty for businesses, and a backstop for the contentious Irish border issue. This will ironically keep the UK embroiled in the customs union for years–when the very purpose of leaving was to control its own borders.

Should the deal pass (something that’s looking less likely on Thursday morning as a vote of no-confidence may unfold) uncertainty will hardly be removed. The public is overshadowed by the limbo that the UK finds itself in once more.

A clear position on the ramifications of Brexit for individuals and business alike is unlikely to emerge until late 2020. This will keep businesses with their hearts in their mouths and fuel market uncertainty further.

Division Inside the Ranks

Just as it’s unlikely that the UK will return to the EU (just imagine Roger Ver and Jihan Wu welcoming Craig Wright and Calvin Ayre back into the fold), division in the ranks is a certainty. As the miners and the hash war has shown the clear division in the Bitcoin Cash ranks, on Thursday, key British MPs began to resign, most notably Esther McVey and Dominic Raab.

Mr. Rabb was appointed as Brexit Minister upon the resignation of David Davis this summer that already caused a severe blow to the Tory party. He cited in his resignation letter that he could not support a deal that left the Irish border exposed and the UK at the mercy of the EU being able to veto their exit decision.

One Eurosceptic MP described Mr. Rabb’s resignation as “the end game” for Mrs. May’s leadership, adding:

“If the guy who was supposed to be leading it can’t support it, then how can MPs or the country. It’s a horror show. There’s no way back. She has just got to go. This is an epic fail.”

Other ministers were talking about “turmoil,” a “bloodbath,” and “casualties,” very similar to that of the crypto world right now. Despite the US Federal Reserve citing crypto as not even a blip on the radar of traditional finance, its markets are equally sensitive to external geopolitical forces.

The Pound Takes a Tumble

The pound dropped sharply upon the news of Rabb’s resignation by 1.1% wiping out its rebound in the last two sessions. Northern Ireland Minister Shailesh Vara also resigned on Thursday morning upon the news.

pound dollar FT

Even the Prime Minister herself said that there were “difficult days ahead,” and that she expected plenty of backlash, concluding that it was the “best that could be negotiated,” further highlighting the erroneous decision from the get-go.

The Crypto Market Bloodbath

Mrs. May still has to get her own government to accept the deal. And with a hardline of MPs against the Prime Minister and key figures resigning left and right, this is far from certain. Not to mention the fact that the UK has pretty much lost all confidence in its country’s leader.

But if Theresa May thought she was having a bad day, at least she’s in good company. Over the last 24 hours, the crypto market has lost over $26 billion, in one of the worst selloffs of 2018.

Bitcoin Cash’s ongoing civil war will reach its conclusion today and we’ll know for sure whether two separate blockchains Bitcoin ABC and Bitcoin SV will emerge.

Whatever the outcome for BCH and crypto, at least the rising hash war and contention from opposing camps will start the beginning of an end. Whether it ends as disastrously as the Brexit deal or not remains to be seen, but it’s unlikely that the two will live in harmony.

Credits to Christina Comben

BitPay has joined the litany of industry heavyweights including Coinbase and Binance in backing the Bitcoin Cash ABC side of the upcoming Bitcoin Cash hard fork.

Without delving too much into the debate surrounding the upcoming chain split, Bitpay said in a blog post:

BitPay’s system uses the primary software implementation of Bitcoin Cash called Bitcoin ABC. Bitcoin ABC has scheduled a Bitcoin Cash protocol change via hard fork on November 15th. […] BitPay has not made any plans to migrate from the Bitcoin ABC implementation of Bitcoin Cash to a different implementation.

They also recommended that users not send transactions in the time surrounding the actual hard fork, saying this could increase the risk to user funds being lost or double-spent.

During the fork, your funds held in your wallet will be safe, and you won’t be at risk of losing funds. However, we strongly recommend that you stop sending or receiving transactions from your Bitcoin Cash wallets at 10 AM EST (about two hours before the fork). During a hard fork , there is an increased risk that outgoing or incoming transactions can be lost or double-spent.

With Coinbase, Bitpay, and Binance all having announced support for one side of the split, the “Satoshi Vision” client and chain, which as a baseline raises the maximum block size to 128MB currently only truly has the support of the largest BCH mining pool, Coingecko. If the economic support of the market tends toward one version or the other, miners are likely to follow suit – individual miners, without regard to the mining pool as a whole.

Craig Wright and nChain believe they are restoring the original vision of Bitcoin and disregard all evidence to the contrary. CEO Jimmy Nguyen said earlier this year:

Answering the call of miners, nChain is happy to provide technical capabilities needed to support Bitcoin SV. Once the Bitcoin protocol is fully restored and maintained, global businesses and developers can reliably build robust applications, projects and ventures upon it – just as they reliably build upon the long-stable Internet protocols. The future of Bitcoin is big blocks, big business, and big growth. Bitcoin SV is an important step toward that big future by advancing the professionalization of Bitcoin.

Credits to P. H. Madore

Price Watch:

  • Bitcoin is up 7.15%  to $7,200 after fluctuating just below the $7,000 mark last Sunday before finally breaking it on Tuesday. The price soared past  $7,000 to $7,100 on Wednesday. The party didn’t last long with the party falling back down below the $7,000 mark the next day.  The price found strong support at the $6,800 level and was able to recover to $7,200.
  • Ethereum is up 7% to $292. The coin is still able to sustain breaking the crucial $300 price level and move with Bitcoin this week. The increase is encouraging after a 5% decline last week preceded by drops of 11% the week before and 24% the week before and single and double-digit drops going back months.
  • The Coin Market Cap is up 7% this week with most alt coins closely following Bitcoin and Ethereum closely. This is a bullish sign and is refreshing in a bear market.

Mining:

  • ‘Satoshi Vision’ Client, Mining Pool Released – Bitcoin Cash has gotten one step closer to splitting into multiple versions when the network undergoes a planned hard fork in November with the release of the new Satoshi Vision client today. Despite attempts to reconcile differences Wright has moved along with the BCH node launch despite mining pools disavoing them and attacks from Vitalik.
  • Ethereum Cuts Block Reward by a Third – EIP 1234, which proposes to delay the difficulty bomb for approximately one and a half years and to reduce the block rewards with the Constantinople fork has been approved.
  • Largest Bitcoin Mining Pool Launches Ethereum Operation  – BTC.com, which produced 21 percent of all newly-mined BTC over the past 12 months and currently accounts for more than 16 percent of the bitcoin hash rate, announced on Thursday that it has opened an Ethereum mining pool.
  • EOS RAM Exploit Spreads – To reduce spam, EOS requires users to purchase a scarce in-network resource called “RAM” to deploy smart contracts and run decentralized applications (dApps). EOS has addressed the matter on Medium calling it “vandalism” — rather than a bug.

Banks:

  • BoA VP: Patents Are ‘Meaningless’ – Bank of America, which has filed for approximately 50 patents related to blockchain technology, has been called out for using patents for “press releases and public perception of innovation.”
  • CBOE Close to Launching Ethereum Futures – Business Insider reports that CBOE wants to become the first U.S. exchange to list an ethereum futures product, which would transform ether into more of a two-sided market by allowing professional traders to go both long and short on the second-largest cryptocurrency. Pricing data would again come from Winklevoss led exchange Gemini.

Exchanges:

  • Yahoo Launches Crypto Trading – Yahoo.com, the sixth most visited website both globally and with the U.S, announced this week that it has partnered with financial API developer TradeIt to allow users to trade cryptocurrencies from within Yahoo Finance.
  • Russian Finance Watchdog Building Crypto Tracking Tool – The Federal Financial Monitor Service, or Rosfinmonitoring, has reached a limited liability company to develop an analytical tool for tracking cryptocurrency transactions, BBC Russia reported.
  • Bithumb Resumes User Registrations – Bithumb, South Korea’s second-biggest crypto exchange by daily trading volume behind UPbit, will officially resume registrations for new investors as early as this week.

Startups:

  • Dfinity Raises $102 Million – Dfinity token raised a $102 million round, led by A16Z and Polychain Capital to build a “world computer”.  Dfinity, which was founded in 2015 and is headquartered in Switzerland’s “Crypto Valley,” wants to build a decentralized cloud computing network that can rival centralized platforms like Amazon Web Services (AWS), which have been accused of censorship, in part for booting apps that help users evade censorship.
  • Crypto Startup Huboi Gains Majority in Public Firm – Crypto exchange giant Huobi has completed the purchase of majority shares of Hong Kong-based investment holding company, Patronics Holdings Limited (PHL). Data from the Financial Times reveal that the company’s stocks trades at a price of 3.08HKD as at the time of writing. This represents a price increase of 152.46 percent in the last one year.

Credits to Jake Sylvestre

With bitcoin cash developers at each other throats, the year-old cryptocurrency might just split into two.

Created from a hard fork off the original bitcoin network after the scaling debate boiled over last year, bitcoin cash stakeholders seemed unified in their goal of boosting the cryptocurrency’s block size parameter in the hopes of attracting more users and enabling more transactions.

But a few cracks started to pop up in this united front over the past year, as bitcoin cash developers had one technical disagreement after another.

And a new software release by leading bitcoin cash implementation, Bitcoin ABC, has been perceived by some as a subtle declaration of war within the developer community.

The software includes a suite of upgrades, including a smart contract feature that would support atomic swaps, a way of trading one cryptocurrency for another without traditional exchanges. And while many cryptocurrency projects are excited about the idea of interoperable coins, some big names in the bitcoin cash community don’t agree with the changes and have – no surprise – been very vocal about it.

Leading the opposition is Craig Wright, nChain CEO and the cryptographer who claims to be bitcoin’s pseudonymous creator Satoshi Nakamoto, though he’s not provided any proof of this claim so far. And he’s teamed up with Calvin Ayre, an entrepreneur and founder of crypto news site CoinGeek, to lead the resistance with a new bitcoin cash implementation called Bitcoin SV.

Bitcoin SV scraps Bitcoin ABC’s scripts for its own – as well as pushes the block size parameter to 128 MB (bitcoin cash’s block size is currently at 32 MB).

Taking a dig at Bitcoin ABC developers, the Bitcoin SV release announcement reads:

“Bitcoin SV is intended to provide a clear bitcoin cash implementation choice for miners who support bitcoin’s original vision, over implementations that seek to make unnecessary changes to the original bitcoin protocol.”

While infighting about the technical direction of a cryptocurrency is no out of the ordinary occurrence, this particular disagreement could have big repercussions for bitcoin cash.

Bitcoin ABC and Bitcoin SV are incompatible software, and both groups behind the implementations are seeking to trigger new code changes in November. As such, if some bitcoin cash users run one software and others run the other, it’ll cause a chain split and create a new competing cryptocurrency.

All about ‘fake Satoshi’

The fire underlying this technical debate was fueled by none other than one of bitcoin cash’s more prominent supporters – Wright.

After ethereum creator Vitalik Buterin took the mic at a cryptocurrency conference to call Wright a “fraud,” many developers and other stakeholders in the industry started taking sides. For instance, many devs argue against nChain’s Bitcoin SV partly because they’ve started to distrust Wright’s judgment.

Even Jihan Wu, the co-founder of mining hardware manufacturer Bitmain, who has been a proponent of bitcoin cash (his business holds a substantial stake in the cryptocurrency), joined many others on social media calling Wright “fake Satoshi” since they don’t believe his claims that he created bitcoin.

Following up on his earlier condemnation, Buterin later tweeted:

“The bitcoin cash community should not compromise with Craig Wright to ‘avoid a split’ and should embrace it as an opportunity to conclusively ostracize and reject him.”

Despite all this, though, Wright is far from alone in supporting the nChain implementation. Ayre promised in a statement to put all CoinGeek’s mining power towards it (the mining pool is the largest for bitcoin cash at press time), and Cobra, the pseudonymous owner of Bitcoin.org, took to social media to voice his opinion that those behind Bitcoin ABC are in the wrong.

“This is what happens when you have incompetent rogue developers like Bitcoin ABC lead developer [Amaury Sechet] pushing their agenda instead of compromising,” Cobra tweeted. “Tired of these fucking amateurs and morons screwing around with bitcoin cash. Upgrade with consensus, or don’t upgrade at all.”

Attempts at compromise

What’s getting lost in the debate, though, is that several notable bitcoin cash developers actually think both sides are acting out and would instead prefer to compromise.

Besides BitcoinABC and nChain, there are still other bitcoin cash implementations, including Bitcoin Classic and Bitcoin Unlimited, two software implementations that actually predate bitcoin cash.

And these veteran developers are skeptical about the two proposals getting the most attention.

“Both ABC and nChain are trying to hard fork. Both of them are not giving any rationale why. Both of them are completely not responsive to any feedback or any compromise requests from the rest of the ecosystem,” wrote Bitcoin Classic lead developer Thomas Zander.

And Bitcoin Unlimited lead developer Andrew Stone agrees.

He’s not particularly swayed by either side, arguing that both developer groups don’t have the best interest of the end user in mind.

“Given the ‘no changes, no matter how reasonable, except mine’ strategy being pursued by both of these organizations, I can only sadly conclude that this is again about power and ego not about technical merit and end-user adoption,” Stone wrote on a popular bitcoin cash forum.

Instead, he believes bitcoin cash proponents need to “stick together,” and to that goal, he’s working on a code change that would allow Bitcoin Unlimited users to effectively vote on which set of changes they’d like to see activated.

This voting system, he hopes, will help resolve not only this caustic debate but also similar situations in the future.

Meanwhile, on Thursday, Cobra announced a similar effort called the Cobra Client. But rather than allow users to vote, the client simply removes all contentious code changes and replaces them with replay protection, a code change that will protect users from accidentally losing their money in the case bitcoin cash does indeed split into two.

Yet, others, such as long-time crypto enthusiast and Bitcoin Magazine reporter Aaron Van Wirdum, remain pessimistic that a compromise will be reached.

Van Wirdum recently tweeted:

“Turns out if you start a coin by hard fork without consensus, precedent is to hard fork without consensus.”

Credits to Alyssa Hertig

Bitcoin Cash development team Bitcoin ABC isn’t backing down from its plan to release a contentious software upgrade in November, despite vows from other development teams and at least one major mining pool to continue using software that is incompatible with the new ABC client.

On Monday, Bitcoin ABC released version 0.18.0 of its full node Bitcoin Cash implementation, which is scheduled to be activated following the network’s scheduled November hard fork. Included in the update are several contentious features, including canonical transaction ordering and the activation of two new opcodes — OP_CHECKDATASIG and OP_CHECKDATASIGVERIFY.

Supporters argue that these features will make Bitcoin Cash more efficient and extensible, particularly when it comes to implementing a smart contract framework into the BCH protocol.

However, these proposed changes have been met with strong resistance by others within the Bitcoin Cash community, including nChain — Craig Wright’s blockchain development firm — and CoinGeek, the large BCH mining pool founded by billionaire Calvin Ayre.

bitcoin cash mining node stats
Bitcoin ABC is the largest BCH full node implementation by far, but major mining pool CoinGeek is refusing to upgrade to the latest version. | Source: CoinDance

Last week, nChain announced that it was releasing its own full node BCH implementation, dubbed Bitcoin SV (short for “Satoshi Vision”), which would not include these features from Bitcoin ABC and would instead reintroduce four “Satoshi opcodes” and quadruple the BCH blocksize to 128MB.

CoinGeek, whose mining pool accounts for nearly a quarter of the Bitcoin Cash hashrate, said that it will support Bitcoin SV’s development path and refuse to upgrade to software that it believes deviates from the spirit of the original Bitcoin whitepaper.

At present, approximately two-thirds of all BCH node operators are using Bitcoin ABC. It’s unclear how many will migrate to an alternate software client in opposition to the new changes in ABC 0.18.0, but some BCH apps, including Money Button, have expressed concern that they will have to run multiple nodes and manually pause payments since the incompatible nodes will likely at times disagree.

It is also unclear whether other development teams, particularly Bitcoin Unlimited — which accounts for approximately one-third of all full-node clients — intend to side with Bitcoin ABC or nChain. CCN has reached out to Bitcoin Unlimited for comment and will update this article upon receiving a reply.

Credits to Josiah Wilmoth