Blog > Bitcoin & Blockchain Tech

Why Law Matters

By Craig Wright | 02 Aug 2019 | Alternative Coins & Systems

At present, we are seeing the final desperate efforts of a bunch of conmen and felons who seek to maintain the criminal empire that they have built using cryptocurrency. They promote false news and ‘sybil’d’ accounts, and people lap it up thinking that they will get rich quick in the Ponzi scheme that has been promoted as crypto and Bitcoin.

But all of it will end soon.

Law is slow… but effective.

It’s easy to create false documents and say that hearsay is related to reality, but within the week, one of the false-news proponents will have to finally stop running and displaying their cowardice and submit a defence to the court or lose. The others will follow in due time.

Meanwhile, we continue to build and scale. Not in some new way, but in the way I originally envisioned when I created Bitcoin.

You see, the lie of collectivist decentralisation is not a distributed system, but rather a false equivocation where people try to make you ignore reality. It is a system where they believe that you will not fall for the tragedy of the commons and that they will pull the technical wool over your eyes. The reality is simple: no matter how many character attacks are put against me, the technology I am creating wins. When a patent is filed, there is no place for ad hominem. When I submit peer-reviewed academic papers and have them accepted, it is done without knowledge of who I am.

A Thought Experiment on Decentralisation

I have already created systems and technology that would allow every individual person to seek to mine Bitcoin or an alternate cryptocurrency in a truly equal manner without any access to an ASIC. Which is a radically different system than Bitcoin. In the simple thought experiment, I will demonstrate the problems that people cover up when they’re lying to you about the so-called decentralised nature of Bitcoin and with the false claim that it brings democracy to money or any other lie of the sort.

Let us assume a well-connected world using Bitcoin or another cryptocurrency. In other words, we do everything that people say is ideal. We shall explore their ideas, and I will demonstrate why they are so flawed and explain the lies they are so desperately trying to hide.

Let us first assume a world where 1 billion people run 1 billion nodes in order to mine cryptocurrency in a truly distributed and decentralised system where every person is equal.

Let us now assume, as some want to, that a five-second block time can be created. We can assume (falsely) that doing so shall allow for the true distribution of rewards. I say so as a larger block time will just extend all the times and calculations and limit the rate at which you could win a block reward. From here, you shall see that a “fully distributed” Bitcoin is not going to result in a feasible system and will make it less feasible for the collectivist idea of Bitcoin.

As such, we have six blocks every minute, which gives us (6*60*24) or 8,640 blocks a day.

At the same rate, we have 3.153 million blocks discovered every year.

Given 1 billion people using our system, we can reasonably expect that people will each on average win the block reward every 317 years. Give or take.

If we assume a minimal transaction size within blocks, say, all the transactions to be of only 1 KB in total size for any of the transactions, and we assume there is one transaction a day as settlement for each person on earth, which is effectively under a percent of real transaction levels, we will have a requirement on average for around 12 MB per second being used continuously.

It is for every node globally, from the richest to the poorest household. More importantly, it would have to handle transactional peaks that would be expected to account for at least 500 MB per second. Which does not allow for home users.

So, what, hundreds of coins? Really… it changes crypto to barter and a system that is based on the whims of a sock puppet.

Putting everything in the favour of the so-called distributed network and Bitcoin being distributed with equality and opposition to government as a goal, we start to see that every single person on earth is going to need to have the same computers on high-end networking equipment. If you can’t already see that doing so is untenable, I suggest you start thinking through to the true results and scale them to true global commerce.

More importantly, such a system would not work as a flood network. An epidemic giant network would need to be managed and constructed in a manner that allowed propagation to occur in a controlled and directed way. If not, the network traffic required would be between 100 and 10,000 times larger.

Who would invest in a system that allows one to earn only once in a hundred years across an entire family?

Here lies what nobody wants you to know in the exchange and Ponzi schemes that have become the face of crypto. Money-laundering systems, Ponzis, and drug sales and systems based on fraud require the lie that everyone is equal.
My version of Bitcoin, the one I launched in January 2009 to the world, is one that ends in competitive data centres with miners and server farms. It was how I designed Bitcoin, and it is the only way that it actually works.

My system is one that allows for nearly instantaneous global commerce, electronic cash, and an honest record or ledger. It is transparent. Unlike Lightning and other ill-advised attempts at creating a new version of Liberty Reserve using the technology in Bitcoin or even another e-gold, Bitcoin is not designed to lose records. It was designed specifically to promote transparency and honesty. But people will attack and claw at what they see as their criminal empires and the way that they had made their ill-gotten gains, and they will fight to maintain them. To do so, they will push and promote the lie that Bitcoin is about taking down government and business and that it’s about an anonymous drug money. All of the lies will end very soon.

I will be using court and law, because they are part of how a civilised society works. We have entered a time of fake news. A place where false documents are promoted as truth. Even things that are quoted from me are twisted, which I did expect, though, for I see my former quotes as Satoshi twisted out of all context, and even the minimal amount of verification that is required to check them against what I really said is ignored.

But the lazy cowards are coming to the end of their time. In court and under the provisions of evidence law, I get to step in and walk you through the creation of Bitcoin. Not in the way that people who want a system to collapse government say was proof, but through the use of evidence laws.

In doing so, I get to pull apart all of the lies.

I get to systematically destroy the false reputations of all those who have corrupted my creation and turned the derivations of Bitcoin such as BTC into a continuous and falsified system designed to promote fraud and Ponzis. And that’s what will happen. All the media attacks get to be pulled apart. All of the false documents and hearsay that the fake accounts are using and the shills are promoting gets shown to be all it is: nothing.

I did not ask to come out into the media as Satoshi. I did not attempt to conform to be what people falsely claimed to promote myself as. I simply refused to deny I was Satoshi because doing so would be a lie. I created Bitcoin. Not the system that has been created upon it and the changes into the vast of a broken system that people call BTC, but the Bitcoin of the white paper I released in 2008.

There is no Satoshi group.

There is me.

I’m going to tear apart all of your legends in court. Every one of your so-called possible Satoshis. You see, I can disprove a negative because I am the creator of Bitcoin. And yes, you’re going to continue with your ad hominems for some time still, but only for some time. Because once the slowly grinding process of law starts to engage, you’re going to see what it means. The history that you think you can pull and alter will remain, and all your lies will be exposed.

No blockchain is uncensorable. Bitcoin can be seized. In the coming year, you’re going to learn just how fragile the house of cards that is a criminal system built upon Bitcoin or any other cryptocurrency really is.

Meanwhile, I’m aiming to complete my 1,400th white paper that will lead to more patents — with at least one resulting from every paper.

When things come due, and taxable events occur, I will pay my tax. One thing few people understand is that there is no tax on bitcoin that has not moved. In 2020, when things do, the amount of tax I am legally obliged to pay will be paid. Not more, not less. Unlike many people in the Bitcoin and associated copy-coin industry, I have no intention of hiding my taxable income or capital gains from the government and not paying tax. There will be amounts to be paid in both the UK with the HMRC and Australia with the Australian Taxation Office. Whether you like the fact that I pay tax or not is irrelevant. I do. I also work to minimise the amount I need to pay to one which is legally required.

Bitcoin is not anarchist, and it is not anonymous in nature. The failure of all prior crypto systems and digital-money systems has resulted from their endless quest to enable drug sales, money laundering, and people smuggling. Bitcoin has a blockchain that acts as an immutable evidence system. Bitcoin has it so that none of the same things will work successfully in the long term. It’s not friendly to people evading tax, and it doesn’t help any of the standard crimes that people think Bitcoin is about.

Bitcoin doesn’t scale in any way that will be legally allowed outside of how I created it.

I choose to face my opponents, as slimy and cowardly as they are, in court, for it is the place where their lies and falsehoods will start to come apart. Some will squirm more and do more to get away than others. But some of them are already at the end of their legal tether. If you trust Twitter and other equally dismal sources of news, you are going to find yourself in a bad place. You see, the problem with gutter-level social media is that it doesn’t give you actionable information. It provides lies and innuendo. And the problem then is that if you place reliance on them, in time you will find that they lead to a dead end.