Dr. Craig Wright, Bitcoin BCH expert and founder of nChain, recently agreed to participate in a lengthy interview through Medium that garnered a total of 60 user-based questions. While the first part of the interview covered questions that were designed to illicit a mental image of the man behind the scenes, there is a great deal of information to help the cryptocurrency community understand what is going on with Bitcoin BCH, and with crypto itself. The entire interview can be found beginning here.
Dr. Wright’s responses show that a great number of individuals have strayed away from the original concept of cryptocurrency. Where the development process should be simple, many have bastardized the projects in an effort to make them socialists. He rightfully points out, “There is no way to make a socialist chain that works. There is a single protocol and competition.”
As Dr. Wright refers to numerous times throughout the interview, the only cryptocurrency in existence today that is adhering to the original formula of creating a capitalist peer-to-peer currency is Bitcoin BCH. Bitcoin Core (BTC) strayed away from this concept – which was the impetus for the creation of a digital currency. In seeing that BTC was more concerned with serving as a storage tool, and not a digital currency, supporters of the original concept broke the chains that led to the hard fork that gave rise to Bitcoin BCH. This was the only way to ensure that cryptocurrency would be developed as a legitimate currency and not just another financial trading vehicle.
When asked about private permissioned blockchains, such as the HyperLedger project by IBM, Dr. Wright pointed out that it has no place. He explains that HyperLedger will fail, predicting, “[IBM] failed to understand the Internet and tried to capture closed networks and systems. This led to large losses for IBM. Here again, they fail to understand the basics of Bitcoin and have made a joke of themselves long term.”
There is a great deal of discussion over privacy and anonymity, with many believing that they are one and the same. As Dr. Wright so creatively put it, they are “chalk and cheese.” Any time anonymity has been introduced throughout history, it has been corrupted. However, privacy – which is more closely aligned with confidentiality than anonymity – will give the ability for transactions to be legally binding without divulging too much personal information. Dr. Wright points out, “Unfortunately, the words, “privacy”, “confidentiality” and “anonymity” are used loosely and interchangeably. These however represent very distinct and different things. The different meaning of these words, in law and in contract are important for a start. This distinction matters greatly when it comes to data ownership, rights, responsibilities, and protections.”
The Bitcoin BCH ecosystem continues to evolve and introduce real-world applications that will help the digital currency advance as the ultimate, and possibly only, cryptocurrency offering. Dr. Wright explains that cryptocurrency needs to be cash first and adds, “To deliver this, we need stability and a business-friendly system. That was all [BTC] was lacking. In Bitcoin Cash, this will not be an issue again. We are locking the protocol to one as close as we can achieve to version 0.1 (there are some crap additions that are not easy to remove as you cannot roll back changes in [BTC] script).”
Dr. Wright raises a good point when he talks about how bank savings accounts doesn’t produce the results most people believe they do. He says, “The reality in ‘savings’ accounts is that you pay for the privilege of having the bank ‘protect’ your money. That is, they slowly eat away at what you save. If you are earning 1% interest and your marginal tax bracket is 30%, then for a £100,000 GBP saving and investment, you are earning £1,000 GBP before tax. This requires that you pay £300 GBP in tax. So, you earn a real return of only £700 GBP.”
He added, “BCH is a deflationary system. You gain value long term by saving, and a BCH bank would pay you to have the use of the money you invest. This is how banking used to work.”
The entire interview is a fascinating read and well worth the time it takes to digest all of the information. Even those – especially those – who are die-hard BTC supporters simply because BTC was the first could benefit from the interview.