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Bitcoin SV Soars But Critics Question Sudden Rise
Bitcoin SV (Satoshi Vision) has absolutely exploded in price over the past week. The altcoin has surged from well under $200 to as high as $440 in just 24-hours time. With the push Bitcoin SV became the 4th most valuable crypto, passing its fork competitor Bitcoin Cash. Since the explosion, prices have settled to just above $300, why the rise and fall?
The meteoric climb of Bitcoin SV prices over the past week are all tied to news surrounding BSV creator, Craig Wright. Wright has famously, or infamously depending on your view, declared that he is in fact Satoshi Nakamoto, a pseudonym used by the creator of Bitcoin.
This lofty claim has supporters but is mostly thought to be false. Wright is currently being sued by his former business partner, David Kleiman, whom Wright mined a reported 1.1 million Bitcoin with before 2013. Kleiman has since passed, but his estate is suing Wright because half of their business assets should have been given to Kleiman’s estate when he passed, and they have not been given.
The court case between the two parties is the main reason behind the rise of Bitcoin SV. Wright has been ordered by the court to provide the private keys associated with his and Kleiman’s business, referred to as the Tulip Trust, keys that supposedly hold the first Bitcoin ever mined.
After news broke that Wright was complying with the court order, Bitcoin SV began to soar as many believed that he was providing the proof that he is in fact the creator of Bitcoin.
However, Wright did not provide the court with the private keys necessary to prove he is Satoshi Nakamoto, nor the evidence the court asked for. Instead of providing the private keys, Wright instead sent a bonded courier with over 16,000 Bitcoin addresses that Kleiman’s lawyers will now have to sort through. Upon announcement of this, Bitcoin SV dropped back down 35%.
Is Bitcoin SV’s Bump Just an Exit Scam?
Many analysts and skeptics are viewing this unsustainable rise of Bitcoin SV as a pump and dump or exit scam.
Through a very public court case, Wright has been able to promote BSV while also promoting the idea that he is the creator of Bitcoin, an idea which, if true, would mean that BSV would permanently overtake Bitcoin Cash as the desirable Bitcoin alternative, since he would be the creator of both Bitcoin and Bitcoin SV. The rise of Bitcoin SV is completely tied to developments in the court case, as is the subsequent fall it has experienced.
Some analysts are calling for people to short BSV, as the network has become clogged and no one can make any transactions. When it unclogs, many believe that there will be a massive profit taking exodus, lowering the price of BSV dramatically. Cryptovantage is in no way advising readers to buy, sell, or short BSV.
If you would like to read more about Craig Wright and the controversy surrounding his claim, Vitalik Buterin, creator of Ethereum, has compiled a cache of reports and articles that refute Wright’s claim and can be found here: https://github.com/vbuterin/cult-of-craig
