Craig Wright on Bitcoin and the reactionary response to an uprising

With the recent fall in prices in the digital asset markets, inexperienced investors are facing a huge loss of money. Those affected have only recently begun to ask the question: what kind of so-called digital currency have I actually bought? Does it have any value, or have I been tricked?

This is a result of the democratization of finance, which is presented as exclusively positive. It actually has positive sides, but the negative ones are barely mentioned at the moment.

What means democratization of finance is easy access to financial services. That in itself can be a step forward. But on the way to these financial services, the easy access opens the door for some people to take advantage of others, primarily through information asymmetry.

Bitcoin inventor Dr. Craig Wright warned in 2019

Digital assets were and still are a handy tool for financial crime of all kinds. With a lot of marketing efforts on social media and technoprat, investors who have not even read the Wikipedia article on blockchain began to distribute noticeable amounts of their net worth to ICOs, NFTs and so-called “cryptocurrencies”.

More than three years ago, Bitcoin creator Dr. Craig Wright published an article entitled The Wheel of Time is Not on an Axis. In the article, Dr. Wright described the democratization of finance as a revolt – with a reactionary response to what will be witnessed in the future.

For anyone unfamiliar with these concepts: a revolution usually means a sudden change in political or socio-economic structures, and a reactionary reaction to it is the setback of people who – in their eyes – are negatively affected by these changes.

In his article, Dr. Wright states:

Every revolution (anonymous coins, foolish ideas about the democratization of finance) has a reaction. No reformation can take place without a revolution strong enough to create one reaction.

Bitcoin does not democratize finance. ICOs do not. (…). The reason we have a concept of qualified investors is to protect people without access to information from those who abuse the weak. The creation of ICOs is simply a means of circumventing information controls, a means for those without anything of value to take money they have not earned. It’s just something people use to bring back fraud with ear parts, scams with pink sheets and fraud with online IPO. None of them are new, and none of them require a blockchain.

This was written in 2019 when ICOs were a trend. Not much has changed nowadays, as ICOs are still a thing, and many useless NFTs have gained traction.

To be clear, easy access to financial services is really progress. The question is whether the people who finally have easy access actually enjoy the progress or not. For most people, the digital resource sphere has not been a blessing. However, ICO and NFT issuers, on the other hand, generally have financial gains.

Bitcoin seems to have started a revolution and may also be the key to the reactionary response

The problem is not just about who makes money with Bitcoin and other digital assets, but who goes out with losses. For example, some digital asset exchanges have handled KYC and AML regulations loosely, in favor of criminals, not the supposedly “now financially liberated” people.

Dr. Wright has repeatedly pointed out that Bitcoin was not designed to operate outside existing laws. Also, Bitcoin was not invented to deceive inexperienced investors. In the article mentioned above, Dr. Wright said:

That was never the goal of Bitcoin. Bitcoin helps organizations and companies maintain their records. It helps them pay taxes. It helps them maintain compliance with the law. It helps them maintain shareholder records. You see, Bitcoin helps companies.

Bitcoin had been developed and designed before Occupy and the associated idiocy began to protest against banks and companies, and was never intended to attack banks or companies. Bitcoin brings honesty to such systems. “

We see that the real progress would be to actually help the existing financial system to be more transparent and honest, and not circumvent it by retreating to unregulated and shady exchanges of digital assets.

What is the reactionary response to the problems in the digital asset sphere?

The reactionary answer to all the current mess of digital assets is Bitcoin and law. It’s that simple. As intended by the inventor, Bitcoin is a tool for tracking economic crime. Existing laws that are fully applied help with the rest.

We will begin to see more and more questions from stock exchanges regarding the source of funds. We will hear about lost and stolen Bitcoins being recovered and returned to the rightful owner. Although there is no identity in Bitcoin itself, identities can be linked to Bitcoin from outside Bitcoin. Developers of digital assets and their promoters have obligations.

The reactionary response to the uprising will be to bring order to the chaos. However, all this is not a disaster. We seem to need both the uprising and the reaction to it, and then we may end up with real progress.

No reformation can take place without a revolution strong enough to create a reaction, Dr. Wright wrote in The Wheel of Time is not on an axis.

See: BSV Global Blockchain Convention Panel, The Future World with Blockchain

New to Bitcoin? Check out CoinGeeks Bitcoin for beginners section, the ultimate resource guide for learning more about Bitcoin – originally proposed by Satoshi Nakamoto – and blockchain.