Connect with us

Markets

Australian Craig Wright Identifies Self as Bitcoin Creator

Published

on

Bitcoin

Craig Steven Wright, an Australian entrepreneur, identified himself as the creator of bitcoin almost five months after he was outed in media reports as the man behind the virtual currency.

Wright said in a blog post and interviews with three media organizations that he developed the original bitcoin software under the pseudonym Satoshi Nakamoto, a claim that’s been disputed by others. Wright provided technical evidence, including the original encryption keys, that have been confirmed by prominent members of the bitcoin community, the BBC reported.

Wright was named as the creator of bitcoin by both Wired and Gizmodo in December, which he said caused unwanted attention on his work and family. A white paper on the virtual currency was released under the name of Nakamoto in 2008 detailing the concept of peer-to-peer electronic cash before software was rolled out in early 2009. More than one other person has previously been identified as the original creator.

“Some people will believe, some people won’t and to tell you the truth I don’t really care,” he said in a video clip posted to the BBC’s verified Twitter account. “I don’t want money, I don’t want fame, I don’t want adoration. I just want to be left alone.”

Skeptical Observers

Before Monday, Wright had stayed silent on the December reports, which cited e-mails, deleted blog posts and documents. He also revealed himself as bitcoin’s creator to the Economist and GQ magazines, the BBC said.

The evidence Wright provided didn’t completely dispel all doubts about his claim to be Nakamoto, according to the Economist. The magazine said Wright did not definitively show he had control over an original stash of bitcoin suspected to be owned by Nakamoto. He also had a potential personal interest in influencing debate within the bitcoin community, and claiming he is Nakamoto would strengthen his argument, the magazine said.

Jonathan Underwood, a technical adviser to bitcoin startup bitbank Inc., said the proof Wright posted on his blog was a signature from an old transaction and not evidence that the Australian actually controls Nakamoto’s private bitcoin keys.

“I didn’t believe Craig was Satoshi when it was news last December, and I still don’t believe it,” said Underwood.

Yuzo Kano, who runs a bitcoin exchange in Tokyo, is also skeptical of Wright’s claims.

“The key he posted on his blog is actually publicly available information,” said Kano, who quit Goldman Sachs Group Inc. to open BitFlyer Inc. in 2014. “This doesn’t prove at all that he holds the private keys.”

Moving Mainstream

Bitcoin’s libertarian roots, with no central issuing authority and a public ledger to verify transactions, has become more mainstream with its adoption by merchants around the world. Its underlying technology has also drawn interest from banks including Goldman Sachs and Citigroup Inc.

Advocates have promoted bitcoin as a global, decentralized currency for the Internet age, and venture capital investments in companies affiliated with the technology topped $1 billion last year. Yet the instrument has proven volatile, its role in money laundering and other illegal activity is a constant source of questions, and the price fluctuates with each regulatory clampdown or criminal investigation.

New bitcoins are generated all the time, when operators of number-crunching computers called miners solve complex equations and record every transaction. The number of bitcoins that can be generated, however, is limited by design in the digital currency’s underlying software, and the built-in scarcity mechanism means ever more powerful computers are needed to mine the currency.

Computing Background

When Wright was first identified, he was living in a modest home on a quiet tree-lined street in the suburb of Gordon, about 13 kilometers from Sydney’s central business district.

His then social-media profile suggested a man with an enthusiasm for virtual currency and computing. In addition to numerous college degrees and a stint as a chef, his now-deleted LinkedIn profile listed him as the chief executive officer of DeMorgan Ltd.which has researched bitcoin, proposed a bank for the currency, and offers wallet and exchange services.

Wired’s evidence for naming Wright as the currency’s creator included 2008 blog posts discussing bitcoin, along with e-mails, transcripts and accounting forms that corroborate the link. The tech magazine also cited a 2014 administrator’s report into Hotwire Preemptive Intelligence Pty., which indicated the e-payment software firm was backed by A$30 million ($23 million) of bitcoin owned by its managing director Wright.

The New York Times and New Yorker magazine have both tried to find the person behind the pseudonym. In a 2014 cover story, Newsweek identified the real Satoshi Nakamoto as a California physicist, who denied the report.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Drop Sharply, Marking Steepest Weekly Decline in Three Months

Published

on

Crude Oil - Investors King

Amidst concerns over weak U.S. jobs data and the potential timing of a Federal Reserve interest rate cut, oil prices record its sharpest weekly decline in three months.

Brent crude oil, against which Nigerian oil is priced, settled 71 cents lower to close at $82.96 a barrel.

Similarly, U.S. West Texas Intermediate crude oil fell 84 cents, or 1.06% to end the week at $78.11 a barrel.

The primary driver behind this decline was investor apprehension regarding the impact of sustained borrowing costs on the U.S. economy, the world’s foremost oil consumer. These concerns were amplified after the Federal Reserve opted to maintain interest rates at their current levels this week.

Throughout the week, Brent experienced a decline of over 7%, while WTI dropped by 6.8%.

The slowdown in U.S. job growth, revealed in April’s data, coupled with a cooling annual wage gain, intensified expectations among traders for a potential interest rate cut by the U.S. central bank.

Tim Snyder, an economist at Matador Economics, noted that while the economy is experiencing a slight deceleration, the data presents a pathway for the Fed to enact at least one rate cut this year.

The Fed’s decision to keep rates unchanged this week, despite acknowledging elevated inflation levels, has prompted a reassessment of the anticipated timing for potential rate cuts, according to Giovanni Staunovo, an analyst at UBS.

Higher interest rates typically exert downward pressure on economic activity and can dampen oil demand.

Also, U.S. energy companies reduced the number of oil and natural gas rigs for the second consecutive week, reaching the lowest count since January 2022, as reported by Baker Hughes.

The oil and gas rig count fell by eight to 605, with the number of oil rigs dropping by seven to 499, the most significant weekly decline since November 2023.

Meanwhile, geopolitical tensions surrounding the Israel-Hamas conflict have somewhat eased as discussions for a temporary ceasefire progress with international mediators.

Looking ahead, the next meeting of OPEC+ oil producers is scheduled for June 1, where the group may consider extending voluntary oil output cuts beyond June if global oil demand fails to pick up.

In light of these developments, money managers reduced their net long U.S. crude futures and options positions in the week leading up to April 30, according to the U.S. Commodity Futures Trading Commission (CFTC).

Continue Reading

Crude Oil

Oil Prices Rebound After Three Days of Losses

Published

on

Crude oil - Investors King

After enduring a three-day decline, oil prices recovered on Thursday, offering a glimmer of hope to investors amid a volatile market landscape.

The rebound was fueled by a combination of factors ranging from geopolitical developments to supply concerns.

Brent crude oil, against which Nigeria oil is priced, surged by 79 cents, or 0.95% to $84.23 a barrel while U.S. West Texas Intermediate (WTI) crude climbed 69 cents, or 0.87% to $79.69 per barrel.

This turnaround came on the heels of a significant downturn that had pushed prices to their lowest levels since mid-March.

The recent slump in oil prices was primarily attributed to a confluence of factors, including the U.S. Federal Reserve’s decision to maintain interest rates and concerns surrounding stubborn inflation, which could potentially dampen economic growth and limit oil demand.

Also, unexpected data from the Energy Information Administration (EIA) revealing a substantial increase in U.S. crude inventories added further pressure on oil prices.

“The updated inventory statistics were probably the most salient price driver over the course of yesterday’s trading session,” said Tamas Varga, an analyst at PVM.

Crude inventories surged by 7.3 million barrels to 460.9 million barrels, significantly exceeding analysts’ expectations and casting a shadow over market sentiment.

However, the tide began to turn as ceasefire talks between Israel and Hamas gained traction, offering a glimmer of hope for stability in the volatile Middle East region.

The prospect of a ceasefire agreement, spearheaded by Egypt, injected optimism into the market, offsetting concerns surrounding geopolitical tensions.

“As the impact of the U.S. crude stock build and the Fed signaling higher-for-longer rates is close to being fully baked in, attention will turn towards the outcome of the Gaza talks,” noted Vandana Hari, founder of Vanda Insights.

The potential for a resolution in the Israel-Hamas conflict provided a ray of hope, contributing to the positive momentum in oil markets.

Despite the optimism surrounding ceasefire talks, tensions in the Middle East remain palpable, with Israeli Prime Minister Benjamin Netanyahu reiterating plans for a military offensive in the southern Gaza city of Rafah.

The precarious geopolitical climate continues to underpin volatility in oil markets, reminding investors of the inherent risks associated with the commodity.

In addition to geopolitical developments, speculation regarding U.S. government buying for strategic reserves added further support to oil prices.

With the U.S. expressing intentions to replenish the Strategic Petroleum Reserve (SPR) at prices below $79 a barrel, market participants closely monitored price movements, anticipating potential intervention to stabilize prices.

“The oil market was supported by speculation that if WTI falls below $79, the U.S. will move to build up its strategic reserves,” highlighted Hiroyuki Kikukawa, president of NS Trading, owned by Nissan Securities.

As oil markets navigate a complex web of geopolitical uncertainties and supply dynamics, the recent rebound underscores the resilience of the commodity in the face of adversity.

While challenges persist, the renewed optimism offers a ray of hope for stability and growth in the oil sector, providing investors with a semblance of confidence amidst a volatile landscape.

Continue Reading

Gold

Gold Soars as Fed Signals Patience

Published

on

gold bars - Investors King

Gold emerged as a star performer as the Federal Reserve adopted a more patient stance, sending the precious metal soaring to new heights.

Amidst a backdrop of uncertainty, gold’s ascent mirrored investors’ appetite for safe-haven assets and reflected their interpretation of the central bank’s cautious approach.

Following the Fed’s decision to maintain interest rates at their current levels, gold prices surged toward $2,330 an ounce in early Asian trade, building on a 1.5% gain from the previous session – the most significant one-day increase since mid-April.

The dovish tone struck by Fed Chair Jerome Powell during the announcement provided the impetus for gold’s rally, as he downplayed the prospects of imminent rate hikes while underscoring the need for further evidence of cooling inflation before considering adjustments to borrowing costs.

This tempered outlook from the Fed, which emphasized patience and data dependence, bolstered gold’s appeal as a hedge against inflation and economic uncertainty.

Investors interpreted the central bank’s stance as a signal of continued support for accommodative monetary policies, providing a tailwind for the precious metal.

Simultaneously, the Japanese yen surged more than 3% against the dollar, sparking speculation of intervention by Japanese authorities to support the currency.

This move further weakened the dollar, enhancing the attractiveness of gold to investors seeking refuge from currency volatility.

Gold’s ascent in recent months has been underpinned by a confluence of factors, including robust central bank purchases, strong demand from Asian markets – particularly China – and geopolitical tensions ranging from conflicts in Ukraine to instability in the Middle East.

These dynamics have propelled gold’s price upwards by approximately 13% this year, culminating in a record high last month.

At 9:07 a.m. in Singapore, spot gold was up 0.3% to $2,326.03 an ounce, with silver also experiencing gains as it rose towards $27 an ounce.

The Bloomberg Dollar Spot Index concurrently fell by 0.3%, further underscoring the inverse relationship between the dollar’s strength and gold’s allure.

However, amidst the fervor surrounding gold’s surge, palladium found itself trading below platinum after dipping below its sister metal for the first time since February.

The erosion of palladium’s long-standing premium was attributed to a pessimistic outlook for demand in gasoline-powered cars, highlighting the nuanced dynamics within the precious metals market.

As gold continues its upward trajectory, investors remain attuned to evolving macroeconomic indicators and central bank policy shifts, navigating a landscape defined by uncertainty and volatility.

In this environment, the allure of gold as a safe-haven asset is likely to endure, providing solace to investors seeking stability amidst turbulent times.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending