Next week, Craig Wright is set to receive the keys for more than 1 million bitcoins, the crypto community is becoming impatient to see whether the self-proclaimed Satoshi Nakamoto will deliver on its promise. Worth more than $8 billion at press time, the unlocked Bitcoins could tank the entire crypto market.
The notorious Tulip Trust to be unlocked on Jan. 1, 2020
Craig Wright, the chief scientist at nChain and chief defender at BSV, has been at the forefront of crypto news from 2018. However, the self-proclaimed Satoshi Nakamoto could see his reign over crypto industry drama come to an end at the beginning of next year.
Wright has been embroiled in a dramatic legal battle with the estate of his former partner Dave Kleiman, with whom he allegedly mined more than 1 million bitcoins in the cryptocurrency’s early days. Kleiman’s estate has successfully sued Wright and won the rights to half of the fortune they mined, worth more than $8 billion today.
However, Wright claimed he was unable to access the funds, as they were held in the Tulip Trust, a Seychelles-based fund. But, despite having lost the keys to the funds, Wright claims Kleiman hired a bonded courier to return the keys to Wright on Jan. 1, 2020.
With just a week left before the end of the year, the crypto community is becoming impatient to see how Wright’s story about the courier plays out. If the keys to the trust were to be delivered, Wright would become the owner of 1.1 million BTC, worth over $8 billion at press time.
Wright paved the way to shift the blame to Kleiman
And while the BSV community is already gearing up for a crypto revolution, the skeptic majority has been pointing out the gaping holes in Wright’s story.
The only evidence backing Wright’s claim that he is set to receive the keys is a 2011 email from Dave Kleiman. The email, produced during the Wright v Kleiman case, claims Kleiman became the sole trustee for 1.1 million bitcoins he received from Wright. The funds, worth $100,000 at the time, were to be put in a trust managed by “at least three people but not more than seven at any time,” it said in the email.
However, the originality of the email has been widely disputed. One of the main things that raised suspicion was the use of the word “satoshi” in the text. The term first popped up in 2013 during a community discussion on how to name the smallest amount of Bitcoin.
It also seems like Wright has been paving the way to shift the blame away from him when, not if, the bonded courier doesn’t show up with the keys. In court testimony, Wright said he instructed Kleiman on how to hire a courier, but he never confirmed whether or not one was actually hired.
While the story about the courier came out long before Wright claimed he was Satoshi Nakamoto, the judge that presided over his case with Kleiman seemed to think it was also a big bag of nothing.
Judge Bruce Reinhart said back in August:
“During his testimony, Dr. Wright’s demeanor did not impress me as someone who was telling the truth.”
The chances for this to come true are slim to none, but Jan. 1, 2020 will nonetheless become an incredibly important day for the crypto industry. BSV could possibly take a hit, while the rest of the market might firm up a bit and regain its confidence knowing that 1 million Bitcoins won’t be hitting exchanges any time soon.
- Article Originally Featured In CryptoSlate
PayPal’s crypto trading goes live in the US!
Customers will be able to trade up to $20,000 a week, rather than the originally announced $10,000.
On Thursday, PayPal’s crypto trading and payments went live for all eligible customers in the United States.
Per its updated announcement, PayPal ended its waitlist for customers looking to use cryptocurrency in the U.S. Trading features a limit of $20,000 per week, which is double the originally announced $10,000.
PayPal ultimately plans to make crypto payments available at 26 million merchants globally.
A representative said that PayPal will notify U.S. customers about the general availability of crypto services in the coming days.
Dan Schulman, CEO of PayPal, noted that the shift to supporting crypto was driven by what he sees as an “inevitable” drift toward virtual currencies.
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly.”
Much-anticipated global services are expected to launch at the beginning of 2021, alongside crypto payments on Venmo. PayPal initially announced its plans to integrate crypto three weeks ago. The announcement led to a boost in BTC price.
As part of its crypto services, PayPal received the first conditional Bitlicense from the New York Department of Financial Services, one of the most hawkish sub-national financial regulators in the U.S. Many noted that the terms of PayPal’s crypto services would entail that coins bought on the platform would not be able to leave, likely as part of its compromise with regulators in bringing crypto services to such a wide user base.
Story from Markets Bitcoin Breaks $15K as Investor Numbers Peak
Bitcoin’s rally is still going as investors continue to accumulate the cryptocurrency, ignoring overbought signals on technical indicators.
- Bitcoin (BTC, +8.80%) rose to $15,017.05 at 10:50 a.m. ET (15:50 UTC) on Thursday, its highest level since January 2018.
- The price gains happened as global equities rally. European stock indexes are up around 1% on the day and U.S. stock indexes such as the S&P 500 are up over 2%.
- The cryptocurrency is now up 7.8% over the past 24 hours and over 108% on a year-to-date basis, according to CoinDesk’s Bitcoin Price Index.
- Amid the price rally, the number of “accumulation addresses” has risen to a record high of 519,228, according to data source Glassnode.
- The metric has risen by 3% in the past four weeks alongside bitcoin’s rally from $10,500 to $15,000. “It shows retail flow … investors accumulating amid the price rally,” Denis Vinokourov, head of research at the London-based prime brokerage Bequant told CoinDesk in a Telegram chat.
- Also, accumulation addresses are up over 9% in 2020, meaning investors have been accumulating coins throughout the year, possibly creating upward pressure on prices.
- Notably, the number of bitcoins locked in accumulation addresses has gone up 20% to 2,818,447 BTC this year.
- Accumulation addresses are those that have at least two incoming “non-dust” transfers (representing minuscule amounts of bitcoin) and have never spent funds. The metric does not include addresses belonging to miners and exchanges and excludes addresses active more than seven years ago to adjust for lost coins.
- In a sign of confidence in the cryptocurrency’s long-term prospects, investors accumulated coins during the March crash and also during the price drop in September. On both occasions, the price dip was short-lived.
- The recent rise in both accumulation addresses and prices indicates the market participants are not worried about a chart-driven sell-off and foresee a continued rise in prices.
- Bitcoin’s 14-day relative strength index (RSI) has been indicating overbought conditions since Oct. 20, when bitcoin was trading near $11,700. So far, the technical pullback has remained elusive.
How To Buy Bitcoin (BTC) With Your Paypal Account Step By Step Guide 2020
There are 26 million merchants that offer PayPal around the world. For those merchants, customers paying in crypto won’t have any impact. Everything will be converted to fiat currency when a transaction is settled.
As part of today’s (October 21st, 2020) move, PayPal has been granted a conditional BitLicense by the New York State Department of Financial Service. It should be able to launch its crypto service in partnership with Paxos in New York.
PayPal’s crypto service is rolling out progressively. You can head over to PayPal’s website and join the waitlist. Everybody should be able to access crypto-related features within the next month or so. The company has already updated its fees with more details about cryptocurrency exchange fees.