Battle between Bitcoin billionaires CZ and Wright leads to Bitcoin SV delisting and a rise in BCH value
After a prolonged and bloody war that has torn a once tightly knit kingdom apart and divided them into several bloodthirsty factions, a lone hero finally stood up this week, slaying the villain’s claim to the throne.
No, I’m not talking about Westeros, the fictional kingdom of blockbuster series “Game of Thrones”. I’m of course referring to the Battle of the Bitcoin Billionaires, reserved Binance CEO, Chaopeng “CZ” Zhao and Bitcoin SV’s Craig Wright, everyone’s go-to Bitcoin antagonist.
And no, Wright is not the hero in this story.
After a few tumultuous years in which he claimed to have invented Bitcoin (and the question mark?) and threatened to derail Bitcoin twice (BCH and BTC SV forks), Craig Wright may have finally overplayed his hand. Wright’s latest antics have galvanized senior cryptocurrency industry leaders into giving both him and the Bitcoin SV cryptocurrency the boot.
Binance delists Bitcoin SV on 22 April- Why?
In the last 24 hours, leading exchange Binance drew shockwaves with its public announcement that it would delist the Bitcoin SV coin within a week, resulting in an almost 20% drop in value for Bitcoin SV and a substantial rise for its rival Bitcoin Cash (BCH).
Wright sues bloggers over “FakeSatoshi”
This follows Bitcoin SV public figures Wright and Calvin Ayre’s threats and pending lawsuits against bloggers Hodlnaut and Peter McCormack, who have derided Wright as a “Fake Satoshi” in the recent past for claiming that he is the unknown Bitcoin founder and author of its whitepaper, ” Bitcoin: A Peer-to-Peer Electronic Cash System, released a decade ago.
CZ jumps in
Popular Binance CEO “CZ” finally had enough and issued a strong Twitter ultimatum to Craig Wright on 11 April 2019 to cease his claims and lawsuits or get Bitcoin SV delisted from the world’s 2nd biggest cryptocurrency exchange :
The Binance statement mentions that all Bitcoin SV trading pairs will be removed on Monday 22 April 2019 at 10AM UTC, including all affected trading orders.
Binance users will still be able to withdraw their Bitcoin SV funds after the deadline. They can view their balances by unclicking the “hide small funds” feature in the exchange’s “Funds” section.
ShapeShift and Kraken to follow suit
To make matters worse, it seems that other blockchain titans are determined to now do the same, with cryptocurrency exchanges ShapeShift officially delisting in the next 2 days and Kraken likely doing the same soon.
Bitcoin SV Delisting: Industry reaction
The industry has generally reacted positively to the news of Bitcoin SV’s sanctioning, with project leaders such as Charles Hoskinson (Cardano) coming out in support of CZ.
Other parties such as Bitcoin Exchange Guide have had a more muted response, asking not to punish the currency and community (BTC SV) for the sins of a supporter (Craig Wright).
Who is Craig Wright?
Craig Wright is the self-proclaimed creator of Bitcoin, “Satoshi Nakamoto”. After being “outed” in 2015 by two mainstream publications, the Australian-born computer scientist and businessman publically claimed in 2016 in an interview with the BBC that he was indeed the father of the first cryptocurrency.
Wright provided “proof” to journalists of the BBC, which was later seemingly debunked by several industry experts who said that it was easy to manufacture the evidence. In response, Wright refused to provide further proof and made a public statement in which he retracted his claims in order to avoid further public scrutiny. However, Wright once again started up with his claims that he was Nakamoto in 2018.
Market Reaction: Bitcoin Cash ABC Vs Bitcoin SV
On Tuesday 16 April 2019, Bitcoin SV’s value experienced a sharp drop in value.
It had an almost polar opposite effect on the price of main rival Bitcoin Cash, who experienced a sharp climb in its value over the last 24 hours.
This indicates that investors are jumping ship and that the latest controversy might be a decisive blow in the Bitcoin Cash wars which have lead to so much divisiveness and animosity within the cryptocurrency industry.
From Bitcoin to Bitcoin Cash to ABC and SV
Bitcoin Cash, the blockchain protocol that increased block size to 8MB in order to improve its speed, split from the Bitcoin chain in a hard fork on 1 August 2017, and was initially fervently championed by a number of crypto influencers that included Jihan Wu, founder of Bitmain, Roger Ver, influential investor and Wright.
After an acrimonious battle for leadership over the project, Bitcoin Cash BCH was surprisingly also forked in November 2018, now splitting into Bitcoin Satoshi Vision (Wright’s camp) and Bitcoin ABC (Wu and Ver).
Ultimately Bitcoin ABC won the battle over Bitcoin SV for as the dominant chain and inherited the BCH ticker as it had more hashing power and was supported by a majority of the network nodes. Wright didn’t take this defeat lying down, threatening the whole industry as a result.
Whether Wright is a fraud or not is not really the question at hand here.
Many in the crypto community still blame him for the subsequent massive drop in Bitcoin’s value in 2018, after he threatened to crash Bitcoin’s value down to a $1000 if the industry chose the Bitcoin Cash ABC fork over Bitcoin SV.
Most observers will see Bitcoin SV’s relegation and the industry “elders”‘ strong message against perceived bullying and false claims as very encouraging signs that the cryptocurrency industry is starting to mature, self-regulate and are serious about weeding out bad elements within its eco-system.
The Future for Bitcoin Cash and Bitcoin SV
Without the support of the world’s major digital exchanges, it will be very difficult for Bitcoin SV, currently the world’s 12’s biggest cryptocurrency, to make any traction against other blockchain competitors in the forseeable future, including Binance’s own BNB coin, which overtook BTC SV in late February by market cap.
Whether Wright is wrong or right is not really the question. He could even be the real Satoshi Nakamoto for all it’s worth. What is certain though, is that his aggressive tactics have finally backfired, not only hurting his pocket, but also that of the whole Bitcoin SV community over what is ultimately a moot point.
Wright cannot prove he’s Satoshi or not, or he would’ve by now. It’s quite ironic that Bitcoin SV’s logo depicts an ouroboros, a mythical dragon or snake that eats its own tail.
While it’s supposed to symbolize infinity, Wright’s defeat seems to indicate that quite the opposite has happened- the cryptocurrency’s leadership has dealt it possibly mortal self-inflicted damage and it appears to have very limited prospects at the moment if market sentiment is to be believed.
C’est la Vie, Bitcoin SV?
While it’s not looking good for Bitcoin SV, Wright seems to be a survivor and you don’t become a billionaire by chance. And again, any “Game of Thrones” character probably has a better chance of surviving the short-term than Bitcoin SV and 95% of other current coins.
Therefore, all I can say with absolute certainty, is that somewhere…
Roger Ver is sitting with a big smile on his face.