Craig Wright on Bitcoin (BTC) and other cryptocurrencies: "This is old wine in new bottles”

Mon 08 Nov 2021 ▪ 12h22 ▪ 3 min read — by James Taylor

Craig Wright, aka the self-proclaimed creator of Bitcoin, has previously referred to most digital currencies as “old wine in new bottles”, meaning that it has already been done before. For him, many cryptocurrencies are nothing but old scams dressed up as something new.

Wright’s post called “Banking old wine in new bottles” appeared on his blog in October 2021. It examines how companies such as Coinbase and Square try to appropriate Bitcoin and create a new banking system (which is very similar to the old one) for personal profit.

No need for intermediaries

The article states that Bitcoin was designed specifically to eliminate the need for trusted intermediaries. But with “bucket shops” such as Coinbase and other exchanges behaving like old-fashioned banks that hold people’s money, they themselves become the intermediaries BTC was supposed to eliminate.

Wright believes that instead of making calculations in Bitcoin on each transaction, exchanges instead settle daily, similarly to the SWIFT banking system.

In fact, what these companies want is a system they can control and make money from, for example, a digital gold system promoted as BTC. This will eventually lead to a system similar to the one a hundred years ago, with Bitcoin replacing gold as an interbank settlement system instead of being used for daily transactions by ordinary people.

Capture & control the market

Many crypto industry newbies get ideas about cryptocurrencies from thought leaders such as Jack Dorsey from Square or Coinbase CEO Brian Armstrong.

However, Craig Wright thinks that these people are in charge of companies that intend to capture Bitcoin and profit from it. He notes that they want to make money from exchange fees and collecting user data, just like Silicon Valley technology companies he has repeatedly criticised. “When you use these companies, you are not using Bitcoin at all,” Wright added. “Instead, you’re using a modern version of an ancient banking system in the form of a low-grade Silicon Valley application.”

Bitcoin is a threat to many industries, so it’s quite possible that the parties concerned are trying to control it by turning it into digital gold. But remember, most crypto conspiracy theories remain unconfirmed.

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James Taylor

Trends are temporary. The blockchain isn’t a trend; it’s the future. I want to help as many people as possible understand it in a simple, clear and interesting way.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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