Kvě 09

BitcoinAverage: Craig Wright Can’t Keep Bitcoin Down For Long

Source: bitcoin

BitcoinAverage

BitcoinAverage (May 9, 2016) — The unraveling of the supposed mysterious inventor of Bitcoin, Satoshi Nakamoto, made headlines this week across mainstream media outlets. Yet, despite the potential implications of the identity of Satoshi, who owns 7% holdings of the total BTC supply, the price held steady, only selling off a measly 4.6%.

This article was provided by the Vanbex Group. Bitcoinist is not affiliated with the firms represented by the Vanbex Group and is not responsible for their products and/or services.

Satoshi Hoax can’t Break Bitcoin!

The market dismissed this news as a hoax, and traders who are long and bullish remained unfazed so this week’s price action remained bullish.

This week’s close is the highest since August 2014.

After a run up to the peak at $471, a resistance level dating back to Nov. 4, 2015, a retracement was only natural, with a sell-off to a low $436 where the price found support. As with most bottoms, a confirmation of support is often necessary.

The price moved up to $460 and then sold off again to $440, simultaneously with the Satoshi Nakamoto hoax.

The resilience of the price during this chaos suggests support at $440 is solid. As of writing this, the price is trading slightly below $460, at $456 as per bitcoinaverage.com.

The weekly chart above shows a bullish continuation pattern, an ascending triangle that has been forming over the past six months.

The $465 resistance line has held up against any price advances back in November 2015, late December to early January 2016, and, most recently, a late April to May 2016 attempt at breaking up.

Western and eastern exchanges differ marginally on price levels.

So, the top for this ascending triangle could be $470, $504 or 3100 CNY or 3350 CNY, depending on the exchange.

If this line finally breaks, FOMO and panic may ensue as the next level after is up to $650. The nature of this pattern is bullish and a lot of traders will have their eye on trading when this break out.

Reddit user, Greencheckmark, commented in r/BitcoinMarkets, “Bitfinex longs were at $20,000,000 on Feb. 20 when it was $451 and since then the price has held above $400 nearly the entire time with $31,000,000 long now at $460.”

The weekly close was the highest since August 2014. This level is crucial.

On breaking up above this level, $680 is a reasonable target. In September 2015 (marked above), the price edged sideways for a while, trading within a narrow range before continuing with the trend.

The same price actions are unfolding now, hugging a $470 resistance level.

BitcoinAverage Weekly Bitcoin Price Forecast

The forecast for the next two-to-three months is bullish, with targets of $650, $680, $800 and possibly $1,000 on the horizon. Patience is key going forward as the set up plays out.

With the expected price-halving just nine weeks away, coupled with the bullish price-level of bitcoin, a run-up could fuel another halving bubble, and send the price as high as the previous all-time high of $1,163.

Zerohedge this week ran an article titled, “Mother Of All Short Squeezes” Looms For Bitcoin where serial entrepreneur, Vinny Lingham, said:

I don’t know if the price is going to $1000 or $10,000? – ?but I do know that it is going up. If I was forced to predict, I would say that it would hit $1000+ in 2016 and $3000+ in 2017. Looking forward to seeing how this all plays out!

However, the price will not shoot up overnight, so, the price action over the next two-to-three weeks is equally important if a trade position is yet to be taken.

The price should trade within a narrow range this coming week, even if gradually moving up to $465. This level is not yet ready to break, and a possible dip downward, to as low as $430 is on the table, without invalidating the bullish case scenario.

Bitcoin Community Reacts Sharply to Satoshi Nakamoto Identity Hoax

This week, cryptographer Craig Wright outed himself as the mysterious Satoshi Nakamoto, causing a stir in the Bitcoin community. In a secret meeting in London, Jon Matonis, Gavin Andresen and three media organizations, the BBC, GQ and the Economist, confirmed Craig possessed control over keys to addresses in Block 9, linked to the earliest block. Subsequently, both Jon and Gavin blogged that indeed, Craig was Satoshi.
The Bitcoin community lashed out at the claim, declaring the only proof that mattered was moving the coins contained in the genesis Block 0. Craig agreed to perform this ask to the BBC, but, pulled out at the last minute. He went on to post a public apology letter, declaring he would retire quietly.

The price was rather unfazed by the potential implications of access to 7% of the Bitcoin supply.

State of New York Approves Gemini to Trade Ether

Together with the Governor of New York, the Winklevoss twins, founders and investors of Gemini Trust Company, announced their exchange was approved for the trading of Ether.

It is the first consent by the NY Department of Financial Services for digital currency trading besides bitcoin. Gemini currently only conducts bitcoin trading, and Ether trading began on Monday, May. 9.

Speaking on the need for compliance, Tyler and Cameron said:

“It’s pretty clear that in the U.S. if you’re an exchange, you are required at the minimum a money transmission license in each state. Anybody who’s operating an ether exchange [and] doesn’t have a license and [sic] is on borrowed time.”

Coinbase and Ripple Edge Closer to securing New York Licenses

Reuters ran an exclusive on bitcoin company, Coinbase, and payment firm, Ripple.

According to unnamed sources, the two companies based out of San Francisco are close to securing a BitLicense from the NY Department of Financial Services after their applications were received on Apr. 28.

The coveted BitLicense, rolled out in 2015 in response to a growing number of digital currency businesses, is aimed at consumer protection and anti-money laundering checks.

A spokesman from Ripple said, “We are committed to being fully compliant with all state and federal laws and applied for the license to ensure we remain so.”


Images courtesy of BitcoinAverage, Ward Aguilar Financial, Inc.

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BitcoinAverage: Craig Wright Can’t Keep Bitcoin Down For Long

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Kvě 08

Bitcoin is Back: Price Rises Nearly $15, Returns to $460

Source: bitcoin

bitcoin bull

Bitcoin is back! After a temporary price drop since our previous price piece that saw it fall to a disappointing $448, our favorite digital currency has jumped back on the horse and commenced its journey into the sunset.

Also read: I Am Satoshi: Will Dr. Wright Cause Panic in the Bitcoin Markets?

The Bitcoin Rally Returns

The sentiment among the majority of market analysts was that the currency was on its way backward — getting ready for another massive slide into oblivion like what we witnessed in 2015. Bitcoin had reached another peak, but would be back at the $300 range in no time. Apparently, this wasn’t entirely true, and not everyone was convinced from the get-go. As one Cryptoinsnews.com reader explained:

“When using charts to invest, I always use the long-term time frames – weekly and monthly and the first thing I do is see if the medium-term moving averages are sloping up or down. For bitcoin, they are currently sloping up, so I would NEVER ‘think about the possibility of decline’ or try and short, I’d wait for the moving averages to turn down.”

Others were in agreement, and their words merely reiterate what many bitcoin fanatics already know: that there is more to bitcoin than meets the eye, and one can’t simply jump to conclusions too quickly. While things may appear downtrodden on the surface, there is magic occurring in the green room. This magic ensures that while the outer layer may be dried, the core is retaining its pulp.

Among the likely reasons for the temporary halt in bitcoin’s ascension was Dr. Craig Wright’s shocking confession. The Australian businessman and bitcoin entrepreneur made headlines when he told media sources that apparently he was the genius behind bitcoin; that he was the mastermind from the very beginning, and that he was the mysterious Satoshi Nakamoto. Naturally, the doctor was pressed for proof, which some feel he ultimately failed to provide. Wright eventually backed away from his statements, afraid of what further publicity might throw his way.

With the mystery behind Satoshi’s identity “temporarily solved,” many found themselves in a state of panic. The idea was to sell their bitcoins quickly to avoid the massive price decline that was expected to come with the news.

But the price decline never came, and Dr. Wright has disappeared from news platforms. As the hype died down, bitcoin crawled from its cage, reached towards the heavens and demanded its original status back. The coin has now jumped nearly $15, recovering from the press and emerging from the ashes as the stable, volatile currency that it is.

So we can be thankful, in this case, that bitcoin has a mind of its own. It came out of hiding right as the rage wore off, and those who kept their funds in light of the rough news can take pride in the fact that their wealth will expand once again.

Do you foresee a further advance in the BTC price? Post your thoughts and comments below!


Images couretsy of Venturebeat.com, RedBubble.

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Bitcoin is Back: Price Rises Nearly , Returns to 0

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Kvě 06

Industry Report: Dr. Satoshi, BitPay Launches Bitcoin Debit Card

Source: bitcoin

Bitcoin Industry Report

There have been some crazy things happening in the world of digital currency since our previous industry report. Is it possible that the identity of Satoshi Nakamoto has been revealed? Los Angeles is now home to some new Bitcoin ATMs, and BitPay has introduced us to a new kind of credit card. Take a look at some of this week’s headlines below:

Editor’s note: Since press time on this article, news has emerged of Craig Wright backing out from his promise to move coins from early Bitcoin blocks. Additionally, his personal site has been taken down and replaced with a message stating his inability to handle the pressure being placed upon him.

Also read: Industry Report: Bitcoin Error Makes Miner Rich, DCG Grows Empire

Industry Report

SATOSHI NAKAMOTO

The identity of bitcoin’s mysterious creator has long been an enigma, but a breakthrough may have occurred as early bitcoin entrepreneur Dr. Craig Wright is now claiming to be the alleged mastermind behind everyone’s favorite cryptocurrency.

The Australian businessman came forward to give pressuring media platforms the latest scoop regarding his cryptic “alter-ego,” but not everyone is a believer. According to some, all Dr. Wright has to do to prove himself – which he’s yet to agree to – would be “using a real private key from the genesis block.” In other words, he must sign in via a private key owned by Satoshi himself. The news is apparently causing a strain of panic, and some are considering selling their bitcoins before the news supposedly causes the price to decline rapidly.

COINSOURCE

Los Angeles is a melting pot. It’s home to numerous cultures, businesses and just about everything else under the sun, but it’s now the proud station of seven new bitcoin ATMs from financial network Coinsource, which has launched several machines in cities ranging from San Diego to San Jose to Las Vegas.

According to CEO and Co-Founder Sheffield Clark, the company is experiencing massive growth, and interest in digital currency is higher than ever before:

“Our entrance into the Los Angeles area is the most important yet for both the Coinsource brand and for bitcoin enthusiasts in Southern California. The roll out of seven new machines in one go was a significant logistical achievement, but we are proud to bring so many more options for both novices and veterans of bitcoin. With more and more use-cases for bitcoin every day, we foresee a future where digital currency is used as commonly as cash or credit cards.”

BITPAY

BitPay has released a bitcoin-based Visa card which allows people to load bitcoin as their amounts run short.

What’s the big news? It can be used at virtually any store or online platform accepting debit card purchases. The card is a multi-faceted form of plastic, only this time, bitcoin’s behind the wheel.

Once purchased, the card arrives within ten days. At press time, the card is only available in the United States.

Any stories you’d like us to include in our next industry report? Let us know by posting your thoughts below!


 

Images courtesy of Youtube.com, lafilm.edu, & bitpay.com

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Industry Report: Dr. Satoshi, BitPay Launches Bitcoin Debit Card

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Kvě 06

Craig Wright Possesses Technical Knowledge To Dupe Gavin Andresen

Source: bitcoin

Bitcoinist_Man in the middle attack

More and more details are surfacing as to who Craig Wright took the necessary precautions to validate his claims of being Satoshi Nakamoto. One worrying piece of evidence shows his list of certifications, which may give him the right tools to pull off a successful man-in-middle attack to sign a particular Bitcoin message.

Also read: Post-Mortem Of A Con: To Be Satoshi Nakamoto or Not To Be?

Craig Wright Accomplishments Are Concerning

While there is nothing wrong with obtaining as many certifications in the world of cyber security as possible, the list of achievements also poses some interesting questions these days. Craig Wright, who claimed to be Satoshi Nakamoto yet decided not to unveil all of his evidence in a dramatic turn of events, has a very long list of accomplishments in this area.

At the same time, there has been some speculation as to whether or not Craig Wright pulled off a man-in-the-middle attack when presenting his “evidence” to Gavin Andresen. Keeping in mind how a special laptop had to be used to show Wright was indeed Satoshi Nakamoto, there was some speculation as to whether or not how legitimate this whole scenario has been.

We will probably never know whether or not Craig Wright used some man-in-middle-attack when presenting his evidence to Gavin Andresen. However, one Reddit user dug up his list of certifications, and there are several courses taken which would provide him with enough knowledge to execute such an attack.

Two of the accomplishments obtained in 2007 stand out in particular. First of all, there is the SANS Stay Sharp Master Packet Analysis, which touches upon the subject of executing a man-in-the-middle attack by looking at data packets and making tweaks to the data transmitted. For example, intercepting data from an Electrum download on a brand new computer would theoretically be possible, to validate one has access to a particular signature allegedly belonging to Satoshi Nakamoto.

Secondly, there is the Stay Sharp: Defeating Rogue Access Points course, which would explain why Gavin Andresen was flown into London for this demonstration. Everything had to take place at a predetermined location by Craig Wright, using a very meticulous process. Not that his necessarily indicates he had gone to great lengths to set up this MITM attack, but it poses some interesting questions, to say the least.

However, there is also a case to be made as to how all of these accomplishments give Craig Wright the necessary knowledge to create Bitcoin in the first place. Now that he has withdrawn himself from revealing further evidence, the truth will never be known. Bitcoin will continue without ever knowing its creator, and so can the community.

Source: Archive.IS

Images courtesy of Craig Wright, Ritambhara

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Craig Wright Possesses Technical Knowledge To Dupe Gavin Andresen

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Kvě 06

Post-Mortem Of A Con: To Be Satoshi Nakamoto or Not To Be?

Source: bitcoin

craig Wright

The con is over. Dr. Craig Steven Wright will not provide proof he is Satoshi Nakamoto. While Gavin Andresen admits he might have been fooled, Jon Matonis stands behind Wright’s claim that he is Satoshi.

Also read: Craig Wright Exits The Bitcoin Stage With Weird Blog Post

Dr. Satoshi Exits the Building

Jon Matonis

The Economist, BBC and GQ  broke May 2 that Craig Steven Wright, whose political views Julian Assange called “amaeteur” in a 1996 e-mail, has provided proof he is Satoshi Nakamoto, the inventor of Bitcoin. Experts doubted this claim based on the ‘proof,’ but Wright promised further “extraordinary evidence” to back his assertions.

Regardless, Craig Steven Wright, whose home was raided in December by Australian tax authorities as part of an ongoing tax investigation involving a $54 million tax refund, has yet to provide cryptographic proof that he invented Bitcoin. The ways in which he tried to prove his assertion that, in fact, he is Satoshi Nakamoto, furthermore, have seemed manipulative. For instance, Wright admitted to the BBC that he purposefully wrote a “convoluted” blog post. He could have simply provided the cryptographic proof the real Satoshi would have no problem providing.

“There are much better ways, and clearer ways he could do that by signing with his PGP key or the Genesis Block receiving key,” Trace Mayer, a lawyer and early Bitcoin investor, said on his Bitcoin Knowledge podcast. Moreover, this was not the first time Wright tried to fabricate evidence that he was the creator of Bitcoin. [Bitcoin developer], Greg Maxwell, disproved his last attempt by arguing Wright had backdated a PGP key. Realistically, if Wright is Nakamoto, he should be able to sign transactions on the Genesis Block.

“[That] would be much better than what we have seen” Jonas Schnelli, Bitcoin core developer, told Mayer in an interview. “[That] would be a very clear cryptographic proof that he could be the same person…But what he showed today [contains missing pieces] to the puzzle and it was proven by some crypto-analysts within one or two hours that this proof is almost worth nothing in terms of math and cryptography.” Mayer spelled out what Wright must do to prove he is truly Nakamoto.

“He needs to come up with a message –  for example, ‘Craig Wright, Satoshi’ –  and he needs to sign that message with the private key to the Genesis Block,” Mayer explained. “And also, sign the message with one of the PGP keys that is not backdated but that Satoshi used then we would have two different authentications based on the timing of when these keys would have been created.

“It would be extremely simple, even if he could sign something or sign a simple sentence with [Satoshi’s] PGP key. That would even be better proof.”

Wright’s assertions were backed by two main participants in the Bitcoin community: Gavin Andresen, the one to whom Nakamoto originally entrusted the Bitcoin source code, and Jon Matonis, an early Bitcoin writer at Forbes. Both are founding members of the Bitcoin Foundation. That foundation, a failed non-profit by any stretch of the imagination, was originally funded by Mt. Gox, whose beleaguered CEO Mark Karpeles currently sits in a Japanese jail. Former founding and board member Charlie Shrem is in jail for abetting illegal money transmission on the Silk Road.

That leaves Andresen and Matonis as the other founding members. Each claimed, though Andresen seemed less convinced than Matonis after a convoluted blog post by Wright appeared online, they saw cryptographic proof by Wright that he is Satoshi. ‘Proof’ has yet to be delivered to the public. The confusion cost Andresen his developer status on the Bitcoin core project. No proof obtained, it’s unclear whether Andresen will receive it back.

Before the fiasco, he had commit access to the Bitcoin core protocol, meaning he could propose updates to the protocol which would then only be implemented after the network agreed to download and run the new version. Bitcoin Core developers revoked it citing a “muddled environment” in the aftermath of Wright’s claims and Andresen’s support.

“His commit rights were revoked because there is a certain risk or possibility that he is hacked,” Schnelli, a Bitcoin core developer, told Mayer.  While commit access doesn’t allow anyone to hack the Bitcoin code and change it, one with such access could create a mess of proposals which other developers would then have to clean up. One can imagine Andresen would receive commit access once more when Wright provides his cryptographic proof that he is indeed Satoshi.

There are, to be sure, other motives in revoking Andresen’s commit access; that is, his involvement in several projects seeking to fork (read: change) the Bitcoin code. Andresen has championed two different code forks – Bitcoin XT and the acid influenced Bitcoin Classic – to the Bitcoin protocol.

Trace Mayer told me: “For Matonis or [Andresen] to not retain cryptographic proof of Wright’s assertion is either intentional complicity in deception or grossly negligent and the only way such credibility damage might possibly be rectified, if it even can be at all, is if solid cryptographic proof is provided.” Andresen has stated he is assured beyond reasonable doubt that Wright is Nakamoto.

“He fits the style of person I was working with,” he said. “He can also say things that sound, at first, ridiculous…After spending time with him I am convinced beyond a reasonable doubt: Craig Wright is Satoshi.” The Economist, one of the chosen papers, left room for doubt in Wright’s claims.

We are not so sure. Although they are not completely satisfactory, Mr Wright provided credible answers to the questions which were asked of him after he was outed last year. He seems to have the expertise to develop a complex cryptographic system such as bitcoin. But doubts remain: why does he not let us send him a message to sign, for example? Perhaps he has access only to one proof: the real Mr Nakamoto could have used the Sartre text to prove his identity to one of his peers and this proof is now being used to show that Mr Wright is Mr Nakamoto. Mr Wright could have used his supercomputer to calculate the signature for this particular text in what is known as a “brute-force attack”. And then, as mentioned before, there is always the possibility that he could have obtained the keys from someone else, perhaps [early Bitcoin participants] Hal Finney or Dave Kleiman. Since both are dead, they cannot be asked.”

Cryptography experts bemoaned the lack of fact checking done by BBC, The Economist, and GQ. Since cryptographic data is easily verified with the right knowhow, why would these major publications not invest no time towards proving or disproving Wright’s “proof”?

“I don’t get why we are not looking at the facts,” Schnelli said. The publications, since they’ve been sitting on the information since December, had plenty of time to verify the claims. So, why didn’t they?

The information could have been proven in minutes and experts could conclude for sure within two hours whether or Wright was Satoshi. Wright could have used a website like Bitcoinocracy.com, where one can sign messages backed by a private key, a public key and a message, such as: ‘Craight Wright, Satoshi

Gavin Andresen Satoshi

In short, the methods of Wright have cast doubt on his assertions – even in Matonis and Andresen, who at one time or another had been totally convinced by Wright. Dan Kaminsky, well-regarded American security researcher, wrote of an e-mail exchange he had with Andresen, where Andresen seemingly backs off that he believes “Craig Wright is the person who invented Bitcoin.” As Kaminsky details:

“What is going on here?” Kaminsky wrote to Andresen. “There’s clear unambiguous cryptographic evidence of fraud and you’re lending credibility to the idea that a public key operation could should or must remain private?”

Andresen replied: “Yeah, what the heck? I was as surprised by the ‘proof’ as anyone, and don’t yet know exactly what is going on.

“It was a mistake to agree to publish my post before I saw his– I assumed his post would simply be a signed message anybody could easily verify.

“And it was probably a mistake to even start to play the Find Satoshi game, but I DO feel grateful to Satoshi.

“If I’m lending credibility to the idea that a public key operation should remain private, that is entirely accidental. OF COURSE he should just publish a signed message or (equivalently) move some btc through the key associated with an early block.”

I personally exchanged e-mails with Kaminsky, who has no problem calling Wright a “con man.”  I also spoke with Michael Perklin, a blockchain-focused security expert. He asserts there was never publicly-available proof that Wright is Satoshi. He takes it further: “All of the available facts are covered with cognitive dissonance that casts doubt on his claim.”

He continues: “[Nakamoto] wrote a trustless system that allows people to carry out transactions without the need for any trusted third party. Why, then, did he announce his proof in a way that required trust in Gavin and Jon?”

Perklin casts doubt on the circumstances surrounding the early days of Bitcoin and Wright’s public assertions.

“Satoshi Nakamoto trusted Gavin enough to transfer control of his open source project to Gavin, which took a lot of faith,” Perklin told Motherboard in a written e-mail statement. “He also trusted Gavin to be on the security mailing list and receive/address security notifications/vulnerabilities with Bitcoin, and to hold the broadcast key. Why, then, did Craig Wright not trust Gavin to hold a digital signature for a few days during a press embargo?” Perklin also highlights contradictions in Wright’s actions. For instance, Wright claims he provided proof in the way he did to protect his privacy.

“Why, then,” Perklin questions, “did he announce his identity in the first place? Why go on a BBC interview? If you were identified as Satoshi in December, got your 15min of fame, and then were forgotten, why resurface when you want to be left alone?” This sort of behavior does not fit the behavior profile of the individual who wrote as Nakamoto in the early days of Bitcoin.

“He used [extreme amounts of patience, discipline, and reasoned/tempered thought processes] to remain anonymous despite numerous opportunities to bask in the limelight,” Perklin reasons. “He asked many early adopters to refrain from advertising Bitcoin because he felt Bitcoin wasn’t yet ready for mass adoption. Craig Wright strongly implied he was Satoshi Nakamoto on a panel, apparently back-dated blog posts, and seems to have taken steps to purposely place himself in the spotlight. These two sets of personality traits are not consistent.”  Still, Perklin found other facets of the claims most bizarre.

“[Nakamoto] built a protocol that made use of multiple cryptographic digest algorithms and novel uses of public key cryptography to build bitcoin,” Perklin elucidates. “He clearly understood cryptography thoroughly. Craig Wright seems to have produced a digital signature to “prove” his identity that is a direct replay of one of Satoshi’s old transactions. Surely Satoshi would know that a replayed signature would not stand up to independent scrutiny.”

Wright promised “extraordinary proof.” Perklin promised to independently verify the proof himself “using repeatable and publicly auditable cryptographic methodologies.” Perklin planned to look at one aspect specifically. He won’t get the chance. He told me before Wright disappeared:

“I look forward to seeing which key he chooses to use so I can compare the nonce value of the block that paid the block reward to see if it fits the well-documented patterns created by Satoshi’s mining rigs,” Perklin imparts. “This type of publicly auditable validation is the only validation that I believe Satoshi would accept, and is the only one that would convince me.”

Nakamoto walked away from the Bitcoin project in 2011. Some believe he grew nervous once Wikileaks began accepting Bitcoin donations when major payment processors cut off the whistleblower organizations’ service. Andresen suspects it could have had something to do with his briefing the Central Intelligence Agency on Bitcoin around the same time.

There are still other bizarre aspects to the story. For instance, when Wright first claimed he was Satoshi, he said he invented it with a friend, Dave Kleinman. Kleinman, a Palm Beach County, Florida-based computer forensics expert, died in 2013 from complications of MRSA and never cashed out his Bitcoin position.

Kleinman, an Army veteran and paraplegic, was a computer wizard. He occasionally appeared on national TV networks for computer forensics and security interviews. Despite his knowledge of computers, a skill in demand in the early nineties, he worked as a Palm Beach County Sheriff, citing his dream to work in law enforcement.

A 1995 motorcycle accident left Kleinman handicapped and bound him to a wheelchair. He received tireless computer training, and became known as “Dave Mississippi” thanks to the many three-letter certifications after his name. He has appeared on CNN and ABC, and authored books on perfect passwords, security threats for business, and other aspects of computers. Kleinman contributed to security mailing lists, including metzdowd.com, which Nakamoto used to first introduce Bitcoin. In Late 2010, months before Nakamoto ceased contributing, at least openly, to Bitcoin’s code, Kleinman fell in the shower and would spent most of the rest of his life in medical treatment centers. Kleinman continued his work, returning to his computer soon after his many surgeries.

The first version of the Bitcoin software was released in 2009. Wright supplied Gizmodo with an e-mail he supposedly penned to Kleinman in the months before the Bitcoin paper was published: “I need your help editing a paper I am going to release later this year. I have been working on a new form of electronic money. Bit cash, Bitcoin…” it reads. “You are always there for me Dave. I want you to be a part of it all.”

Kleinman’s colleagues, though skeptical their friend invented Bitcoin, believe he had the skills to do so. Kleinman was known as a private person, generally, and his friends used “compartmentalized” and “genius” to describe him. Kleinman’s health deteriorated, and he passed away in 2013.

The Palm Beach County Medical Examiner’s Office documented a ghastly scene upon finding Kleinman’s decomposing body, including a loaded handgun and a bullet hole in his mattress, but no ammunition casing. Nobody knows who fired the gun or cleaned up the casing. The official cause of death is natural,  complications from MRSA.

Rory Cellan-Jones, BBC technology writer, explained the ultimate outcome of Wright’s outrageous claims:

“Here’s what happened. On Monday evening, I suggested to Wright’s PR firm that if he could send me a fraction of a coin from an early Bitcoin block – which of course I would return – that might show he had Satoshi’s keys. But Wright’s team came up with a different plan on Wednesday afternoon. They sent me a draft blog in which he outlined a scheme that would see Matonis, Andresen and the BBC all send small amounts of Bitcoin to the address used in the first ever transaction. Then he would send it back, in what would be the first outgoing transactions from the block since January 2009. We went ahead with our payments – I sent 0.017BTC (about £5), which you can still see in the online records. Matonis and Andresen sent similar amounts. Then we waited. And waited. Then my phone rang – with the news that the whole operation was “on hold”, with no reason given. Eighteen hours later we are still waiting for the payments to be made – and now Wright’s new blog says that is not going to happen.”

So, ultimately, Craig Steven Wright scammed Jon Matonis, Gavin Andresen and the BBC for 15 pounds.

It may matter to some people who Satoshi is. Regarding the functioning and development of the underlying Bitcoin network, though, it is largely irrelevant who Satoshi is.


Images courtesy of Forbes, The Rise and Rise of Bitcoin Documentary.

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Post-Mortem Of A Con: To Be Satoshi Nakamoto or Not To Be?

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Kvě 05

Craig Wright Exits The Bitcoin Stage With Weird Blog Post

Source: bitcoin

Bitcoinist_Bitcoin Exit

There has been a lot of focus on Craig Wright claiming to be Satoshi Nakamoto as of late, and many people have inspected the blog post Wright made to legitimize these claims. But all of a sudden, he has shut down his official blog, saying he is “not strong enough for this”.

Also read: UK Law Enforcement Sources Hint At Impending Craig Wright Arrest

Craig Wright Blog Disappears With Shady Message

People active in the world of Bitcoin will have noticed how the evidence provided by Craig Wright is rather flimsy at best. Moreover, even though Gavin Andresen validated his claims, there was a lot of miscommunication between the two parties. Gavin’s post was fairly clear and honest, whereas Wright’s post was rather lackluster.

Bitcoin enthusiasts actively pursued the information he had posted and debunked it within less than a few hours. But Craig Wright was not done yet, as he was set to provide “extraordinary evidence” to the world to validate him being Satoshi Nakamoto. In fact, he even mentioned how he would move one Bitcoin belonging to a Nakamoto address to show he controls the private keys.

However, it appears as if Craig Wright has either taken his blog down, or it has been hacked by a third party. When opening the website, users are greeted with a message saying how Wright is “sorry” and “believed he could put the years of anonymity behind him.” Unfortunately, the negative attention seems to have a toll, and he continues:

“When the rumors began, my qualifications and character were attacked. When those allegations were proven false, new allegations have already begun. I know now that I am not strong enough for this. I know that this weakness will cause great damage to those that have supported me, and particularly to Jon Matonis and Gavin Andresen.”

What makes this even weirder is how the text on this web page is an image, rather than something was written. It appears this is a placeholder image cobbled together rather quickly, and it remains to be seen if Craig Wright posted this himself, or if someone hijacked the domain.Either way, this is a very strange turn of events, and it may not be the last we heard of the Satoshi Nakamoto manhunt.

What are your thoughts on this situation? Let us know in the comments below!

Source: DrCraigWright

Images courtesy of Dr Craig Wright, Shutterstock

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Craig Wright Exits The Bitcoin Stage With Weird Blog Post

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Kvě 05

UK Law Enforcement Sources Hint At Impending Craig Wright Arrest

Source: bitcoin

Bitcoinist_Craig Wright

With all of the discussion regarding Craig Wright these days, the rest of the world is looking at this news with raised eyebrows. In fact, the UK government has not taken kindly to his “revelation”, as Wright might be facing jail time for outing himself as Satoshi Nakamoto.

Also read: I Am Satoshi: Will Dr. Wright Cause Panic in the Bitcoin Markets?

Craig Wright Remains On The Law Enforcement Radar

People who have been following the Craig Wright – Satoshi Nakamoto connection for quite some time now, will have noticed law enforcement agencies are targeting the man. Last December, when the media connected him to creating Bitcoin, his house and office were raided by Australian police. Back then, this was connected a tax advantage he had received for holding Bitcoin, which Wright claimed to have lost later on.

As one would come to expect from such a move by law enforcement, everything in his house and office was gone over with a fine-toothed comb. Given Craig Wright’s involvement in the Australian technology sector throughout the years, he has been a high-profile person in the country for quite some time now.

But Australia is not the only country in the world keeping a very close eye on what Craig Wright is doing, as the UK police have intentions to arrest him using the anti-terror legislation. Although this has not been confirmed by officials just yet, anonymous sources have leaked this information to the press.

Considering how Craig Wright was able to “show” he is Satoshi Nakamoto to the BBC and two other main media outlets, he has brought a lot of attention to himself in the past few days. This remains rather strange for someone who claims to have no interest in fame or media attention, though, but that is a topic for a different discussion.

Under the anti-terrorism legislation in the United Kingdom, the Home Secretary can impose “control orders’ on any individual suspected of involvement in terrorism. Whether or not this act can be enforced when dealing with the alleged creator of Bitcoin – which has often been associated with terrorist funding – remains to be seen, though.

One thing’s for sure; outing himself as the alleged creator of Bitcoin has painted a bullseye on the back of Craig Wright. In the end, this decision may come back to bite him in the rear, assuming the UK police wants to go through with these plans to arrest him. Moreover, it is still doubtful Wright is the actual creator of Bitcoin, as there has been no conclusive evidence so far.

What are your thoughts on these unconfirmed rumors about an impending Craig Wright arrest? Let us know in the comments below!

Source: Siliconangle

Images courtesy of Truthvoice, Shutterstock

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UK Law Enforcement Sources Hint At Impending Craig Wright Arrest

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Kvě 02

Skepticism Abound: Community Wary of Craig Wright Satoshi Claims

Source: bitcoin

craig Wright

Bitcoin community sleuths are already attempting to debunk the reported proof that Dr. Craig Wright is the creator of Bitcoin, the face behind the Satoshi Nakamoto moniker.

Also read: New Ransomware Strains No Longer Want Your Bitcoin

Early this morning the BBC published a report about Dr. Wright, which claimed that he provided “technical proof” of his Bitcoin creator identity. Giving a demonstration in London to BBC, The Economist, and GQ, Wright “digitally signed messages using cryptographic keys created during the early days of Bitcoin’s development.” Reacting to this demonstration, The Economist Reported, “Having been named as Mr. Nakamoto once, unconvincingly, Mr. Wright has a steep hill to climb to convince the world that he is indeed bitcoin’s founder.” The report went on to say, “We are not so sure,” leaving readers with no certainty that Wright is indeed Satoshi. The BBC concluded by saying that Wright planned to provide further proof of his identity to other individuals in the Bitcoin community. 

Despite the doubt from The Economist, Wright seems to have convinced some Bitcoin titans. In a personal blog post, Bitcoin Foundation Founding Director Jon Matonis says, “During the London proof sessions, I had the opportunity to review the relevant data along three distinct lines: cryptographic, social, and technical. Based on what I witnessed, it is my firm belief that Craig Wright satisfies all three categories.” Most notably, Bitcoin icon Gavin Andresen has expressed his belief in Wright’s identity, making statements on both Reddit and his personal blog. On Reddit, Andresen said:

“Craig signed a message that I chose (‘Gavin’s favorite number is eleven. CSW’ if I recall correctly) using the private key from block number 1. That signature was copied on to a clean usb stick I brought with me to London, and then validated on a brand-new laptop with a freshly downloaded copy of electrum. I was not allowed to keep the message or laptop (fear it would leak before Official Announcement).”

In a short post on his personal blog, Andresen elaborated on his belief. Summarizing his trip to London to meet Wright, Andresen said:

Part of that time was spent on a careful cryptographic verification of messages signed with keys that only Satoshi should possess. But even before I witnessed the keys signed and then verified on a clean computer that could not have been tampered with, I was reasonably certain I was sitting next to the Father of Bitcoin.”

Dr. Wright himself made a public announcement on his own blog. This morning, Wright published “Jean-Paul Sartre, Signing and Significance.” In the post Wright, speaking as the creator of Bitcoin, expressed his thanks to those who have contributed to his project. “I cannot summon the words to express the depth of my gratitude to those that have supported the bitcoin project from its inception,” Wright says, “You have dedicated vast swathes of your time, committed your gifts, sacrificed relationships and REM sleep for years to an open source project that could have come to nothing. And yet still you fought.”

In dramatic fashion, Wright concluded his address to the Bitcoin community by saying, “Satoshi is dead, But this is only the beginning.”

The rest of Wright’s post is dedicated to proving that he is the real Satoshi. Presented as the strongest piece of evidence to prove his claim, Wright provided the following signature:

MEUCIQDBKn1Uly8m0UyzETObUSL4wYdBfd4ejvtoQfVcNCIK4AIgZmMsXNQWHvo6KDd2Tu6euEl13VTC3ihl6XUlhcU+fM4=

Satoshi Skepticism Abound: Craig Wright Signature is ‘Worthless’

With seemingly strong proof and the support of Bitcoin superstars, the possibility of Wright actually being Satoshi Nakamoto seems like an obvious reality. However, true to their skeptical nature, the Bitcoin community is pushing back against Wright’s claims.

Not to be outdone by Jon Matonis and Gavin Andresen, the skeptical camp of the Bitcoin community has some heavy hitters of their own. Although not directly questioning Wright’s identity, Bitcoin evangelist Andreas Antonopoulos defaulted to his standard view of Satoshi’s identity, saying, “I’m not playing the ‘Who is Satoshi’ game. As I’ve said many times before, it doesn’t matter.

Antonopoulos went on to unleash a torrent of Twitter updates hammering home his belief in the insignificance of Satoshi’s true identity:

On Reddit, Bitcoin community leader Theymos claimed, “Craig Wright’s signature is worthless.” In the Reddit thread, Theymos features a discovery made by Redditor JoukeH, who “discovered that the signature on Craig Wright’s blog post is not a signature of any ‘Sartre’ message, but just the signature inside of Satoshi’s 2009 Bitcoin transaction.” Theymos continues, “It absolutely doesn’t show that Wright is Satoshi, and it does very strongly imply that the purpose of the blog post was to deceive people.” In conclusion, Theymos says, “So Craig Wright is once again shown to be a likely scammer. When will the media learn?

In that same thread, Redditors advanced a number of criticisms against Wright, even going as far as suggesting that Gavin Andresen could have possibly been hacked, and that his blog post stating his belief in Wright’s identity may not be Andresen’s own words.

On competing subreddit r/btc, users reacted to Andresen’s comment explaining the process undergone when Wright “proved” to Andresen that he was in fact Satoshi:

Ycombinator user mappum posted proof that he believed “debunked” Wright’s claims of being Satoshi:

The signature in Wright’s post is just pulled straight from a transaction on the blockchain. Convert the base64 signature from his post (MEUCIQDBKn1Uly8m0UyzETObUSL4wYdBfd4ejvtoQfVcNCIK4AIgZmMsXNQWHvo6KDd2Tu6euEl13VTC3ihl6XUlhcU+fM4=) to hex (3045022100c12a7d54972f26d14cb311339b5122f8c187417dde1e8efb6841f55c34220ae0022066632c5cd4161efa3a2837764eee9eb84975dd54c2de2865e9752585c53e7cce), and you get the signature found in this transaction input: o/tx/828ef3b079f9c23829c56fe86e85b4a69…

Note that the base64 string at the top of his post isn’t a signature, just a cleartext message: ” Wright, it is not the same as if I sign Craig Wright, Satoshi.nn”.

Now the only question is how he fooled Gavin. I would imagine this story will still get spread around some naive channels for a while, just like the last time Wright tried something like this.

Credit goes to jouke in #bitcoin for figuring it out.”

Bitcoin Price Affected?

The Bitcoin markets seem to be reacting to this controversy, with traders selling in what looks like an effort to secure profit in anticipation of community upheaval.

After spending some time stabilized in the $450s following profit taking at the $470 USD level, the price entered a decline once again. As of press time, the bitcoin price stands at $442 USD.

Meanwhile, Ether is on the rise again, hinting at traders securing investments in case things get nasty in the Bitcoin space. At press time, Coingecko reports that the Ether price is at $9.20 USD, rising considerably in the last three days from $7.47 USD on April 29.

As more research emerges, doubts regarding the legitimacy of Wright’s claims grow. Bitcoinist will continue to follow this story and provide updates as they become available.

What do you think about Craig Wright’s claims, is he really Satoshi Nakamoto? Let us know in the comments below!

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Skepticism Abound: Community Wary of Craig Wright Satoshi Claims

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Úno 23

21 Inc. Details Payment Capabilities for its Hardware

Source: bitcoin

21

In an announcement posted to the company’s blog on Medium, 21 Inc. revealed details about the 21 Bitcoin Computer’s unique ability to facilitate micropayments between users. Updates to the group’s main consumer facing product, released in November 2015 and available for $400, now open unchartered possibilities for integration and usage of micropayments for Bitcoin fanatics, entrepreneurs and developers alike.

Also read: What’s Causing Bitcoin’s Current Bullish Run?

21 Inc. and Micropayments

The post reads:

“Today we’re announcing the release of software and libraries to allow high frequency Bitcoin-based microtransactions between any pair of 21 Bitcoin Computers, without any change to the Bitcoin block size. And soon, you’ll be able to download a free client that makes this work between any pair of devices.”

Through providing a simple command line plugin, developers will now be able to enable micropayments more naturally and easily in applications. These will not rely on any third party, either. Instead, they will trust the open source and decentralized network that is the Bitcoin blockchain. 21 Inc. is angling their hardware to provide infrastructure for micropayments that will enable the next wave of Internet commerce, interaction, tipping, and financing for business and consumers alike.

Business applications could range from supply chain and inventory tracking to international or local trade.  On the consumer side, 21 Inc. is positioning itself to be at the center of micropayments use within applications as well as in the real world, with possibilities ranging from the Internet of Things to social networking plugins to directly rewarding users for sharing content or producing valuable content.

By leveraging two features of the Bitcoin source code known as nSequence and Locktime, both of which were initially imagined by Satoshi Nakamoto, 21 Inc. will enable secure and sustainable forms of micropayments through the smart phones of individuals. An analogy outlining this in their Medium post states:

“How does this technology work? A good analogy is the idea of a bar tab. When you go to a bar, you typically put down a credit card to open a tab, enjoy your food and drinks, and then close out the tab at the end of the night. This means just two “transactions” (opening and closing the tab) even if there were many rounds of food and drink for your party. Reducing the transaction overhead is more convenient for both you and the busy bartender, as you don’t need to pull out your card and they don’t need to pay credit card fees for every pour of every drink.”

This will even be self-fueling through using the local 21 Bitcoin Computer client to mine bitcoin and provide support on the back-end. In a nod towards the lightning network, 21 Inc. is using their own “deposit transaction” channels which are economically feasible through the mining technology the 21 Bitcoin Computer provides.

Applications such as Zapchain (a rewards based social network) and ChangeTip (a integrated set of tools for social media centered micropayments tipping) are the early leaders in the micropayments consumer space. The tools 21 Inc. is providing, however, will be profoundly impactful for the next generation of developers.   Gaming is another impactful area for micropayments, and Minecraft’s Bitcoin plugins and initiatives such as FreeMyVunk will likely benefit from this news.

Overall, this is a surprising yet hopeful move for 21 Inc. The organization lead the single largest round of Bitcoin or Blockchain related investment, with reports claiming the group had raised over $116 million in funding in March 2015. Recent changes and advancements for firms such as Digital Asset Holdings and the Hyperledger Project also signal that investments from 2015 are coming into fruition in 2016.

What do you think about the future of both 21 Inc. and micropayments?   What technical challenges are there towards seeing this into a reality? Will consumers or developer want to utilize these quickly? Share your thoughts below!

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21 Inc. Details Payment Capabilities for its Hardware

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Úno 10

Princeton Releases Free Academic Bitcoin Textbook

Source: bitcoin

Princeton Releases Free Academic Bitcoin Textbook

Princeton is giving people the opportunity to learn about Bitcoin for free. The Princeton Bitcoin textbook is a comprehensive write up on the digital currency created by Satoshi Nakamoto and contains over 300 pages. One of the book’s authors Arvind Narayanan introduced the complete first draft via the Freedom to Tinker blog. Narayanan says:

Also read: Tendermint to Unveil UI, Demo First Blockchain Apps

“If you’re looking to truly understand how Bitcoin works at a technical level and have a basic familiarity with computer science and programming, this book is for you. Researchers and advanced students will find the book useful as well.”

When starting to read the peer-reviewed book, it introduces the “corpses of failed attempts” in the online currency world. Out of the 98 mentioned payment systems most have gone nowhere except for Paypal, which the author notes, “And PayPal survived only because it quickly pivoted away from its original idea of cryptographic payments on hand-held devices!” The book then describes some of the problems of credit card services we use online that use “intermediary architecture” within their operations.

Enter Bitcoin. The digital currency has brought a lot more to the table in contrast to the failed payment systems of the past and credit card services. One of these ideas was Adam Back’s Hash Cash, which had similar attributes to Bitcoin but nevertheless, Satoshi Nakamoto’s code was far superior notes the author, “Bitcoin uses essentially the same computational puzzle as Hashcash, but with some minor improvements. Bitcoin does a lot more than Hashcash does, though — after all, it takes a whole book to explain Bitcoin!”

Narayanan says on his blog post that most chapters have “intellectual contributions.” The official book he says should be out this summer and published by Princeton University Press. He also explains that an earlier version of the textbook has already been used in some courses. The Coursera course that accompanies the book “had 30,000 students in its first version, and it was a success based on engagement and end-of-course feedback,” says Narayanan. They have also added a discussion about Ethereum to the book in chapter 10 as well as other concepts in the cryptocurrency space. Notable topics include proof of stake, colored coins, altcoins, and pump and dumps schemes.

The authors who put the book together are Arvind Narayanan, Edward W. Felten, Andrew Miller, Steven Goldfeder, and Jeremy Clark. All of the writers have a strong background in computer science and technology.  The authors explain why they wrote this 300-page book saying:

“We got into Bitcoin because we believe in the power of its technology, and we think it’s deeply connected to the rest of computer science. While we’ve highlighted how seemingly amazing new technology can struggle to displace established institutions, we believe that in the long run, people will continue to find new commercially and socially useful things to do with cryptocurrency technology. Even if your interest is primarily commercial, you’d do well to master the underlying technology — understanding its power and limitations will help you better weather the market’s hype cycles.”

Educational courses and textbooks teaching the concepts of cryptocurrency is a fantastic idea, and hopefully other universities follow the same path.

What do you think about the Bitcoin textbook released by Princeton? Let us know in the comments below.


Images courtesy of Pixbay, and Freedom to Tinker blog

 

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Princeton Releases Free Academic Bitcoin Textbook

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