Dr. Craig S. Wright has claimed a lot of credit for himself by attacking several projects and events in the cryptosphere, and he’s at it again. But this time, he probably jumped into the wrong hole.
His latest rant goes against XRP. In this article we’re going to debunk some of the “logic” he uses to go against both Ripple Labs and the XRP token. We start with the Tweet from Dr. Wright’s (we don’t know what his Ph.D. specialty is) that has angered Ripple fans for the last ten days or so. He writes:
The funny thing is these XRP idiots think that trying to argue with me makes XRP less of a security.
Well, fools will be fools – and when they learn… it will be too late pic.twitter.com/SHfXFpyidY
— Dr Craig S Wright (@ProfFaustus) November 18, 2018
There are several things to say here.
First of all, after reviewing many reactions from the XRP community in Reddit and other social media sites we found that nobody wants to try and argue with him at all. That’s not to say that they are willing to agree with him either.
It’s more that nobody is willing to take him seriously at all, not just because of his latest rant on Ripple and XRP, but because he’s made a name for himself attacking the blockchain technology and cryptocurrencies in general. Obviously, calling the XRP people “idiots” didn’t help either.
Then there’s the issue of XRP being a security. From his tweet’s context, he seems to believe so. But neither he nor the XRP community will decide if this is true or not. Only the SEC can do that, and it’s still studying the case.
Craig Wright seems to have zero economics knowledge
We don’t decide if XRP is a security either, but we can give you the facts as we know them now. There is a difference between Ripple, the company, and XRP, the token. If you should buy Ripple’s stock, then you would own a piece of the firm. That is a security.
If you buy XRP, all you get are some digital coins. That’s a commodity. This is quite an essential difference between financial entities that somebody who claims to be an expert in economics should understand very well. Yet, it seems Dr. Wright doesn’t.
And there are already antecedents. SEC hasn’t cleared XRP yet, but it’s already pronounced itself about both Bitcoin and Ethereum, declaring that they are not securities at all, but that they do have the potential to be real currencies. So why all this insistence in XRP being a security?
It’s not that different from all other digital assets. The main difference with Bitcoin is that XRP is not mined, but sold by Ripple at the rate of a billion coins per month.
So yes, a lot of XRP is part of Ripple’s actives, but that doesn’t mean that the tokens will give you a piece of the company. It’s like saying that if I buy Bill Gates’ chair, I am getting a piece of Microsoft.
Other objections in the community are that Dr. Wright just spits out personal opinions that are never backed up by hard data, research, or even a basic understanding of cryptography and blockchain technology. And in this particular case, of Ripple’s and XRP history.
Also, Dr. Wright has claimed in the past to be Satoshi Nakamoto, which is a ‘very hard’ claim to prove, and it hasn’t gone well with many enthusiasts in the cryptosphere. And so far, we don’t know he’s shown any kind of definitive proof.
So is he the mythical Satoshi Nakamoto? Is he right about Ripple? You’ll have to do your own research and reach your own conclusions. But to us, that doesn’t look to be the case.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image Courtesy of Pixabay.
Global Elite Update – December 28th
The crypto markets had a relief rally last week. We didn’t get too excited because we’ve seen short covering rallies before and that’s all it was. Bitcoin had moved from a Strong Sell to Sell to Neutral based on trend-following indicators. Now it has moved back into a Strong Sell.
We see Bitcoin going down and testing the lows and probably breaking them and heading below $3k. Trend-following does work and we have fought the trend for the past 3 months and that’s something a trader should never do. Last year, we witnessed it first hand with Bitcoin and crypto. New highs were to be bought. This year, new lows were to be sold. We traded well last year, but this year we ignored our rules and have paid accordingly. There’s nothing worse than buying in a bear market. Markets can go lower than anyone imagines and low prices can last longer than thought. That is what we are witnessing now.
In terms of altcoins and against BTC, we are seeing a few rated as…
Global Elite Update – December 6th
We want to apologize to all our members for no updates. We, like many of you and others (we are all in the same boat), are feeling the despair over this crypto bear market. Add in the global equity selloff and you have a perfect recipe for watching your entire portfolio widdle away.
As we write this, all of our crypto positions are underwater. We are HODLing and just watching the next major levels in Bitcoin. All indications right now are that we are in fact heading lower. The next major support on BTC is $3000 and then the line in the sand is $1800. We have to accept the fact that we might see those prices. After all, we never thought we would see $3779 where it as we write this.
The question everyone is asking how did we get here and why?
There’s no definitive answer but there are a few things we can point to. For one, the SEC has started cracking down on ICO promotions. DJ Khaled and Money Mayweather both settled with the SEC and had to pay penalties and interest. Many had written the SEC off as no enforcement actions were taken earlier this year. As it turns out, the SEC just moves slow and crypto investors are finding that out now.
Second, there are many questioning the sheer number of cryptocurrencies…
Ripple and the Internet of Value
“We don’t know when but Internet Of Value solved by Blockchain is going to happen. Make sure we are in the position before this thing takes off.” That’s what Chris Larsen (Ripple Labs’ co-founder) told to Asheesh Birla, a Ripple employe several years ago. This quotation includes everything Ripple is, everything it does and everything it aims for.
Let’s start by explaining the meaning of “Internet of Value.” This is a philosophical idea that was probably, though we don’t know for sure, put forward by Ripple’s founders. It refers to the expectations of current internet customers and users.
They want for money to move around the internet as quickly and as seamlessly as the information they use. If you want to send somebody money over the web, it should be as quick, safe and cheap as sending an e-mail, that’s the main idea.
So has Ripple made sure it’s there before this thing takes off? Let’s see.
One of the most archaic financial services in the world is the international transfer among banks (something you can’t really do over the internet right now as a private citizen except for credit and debit card payments). This is because settling international payments relies on the SWIFT system.
It was implemented back in 1975, way before personal computers, smartphones, let alone the internet were imaginable technology except in Sci-Fi. SWIFT…
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