After US-Iran Tensions Bitcoin Price Benefits from BSV Surge
Bitcoin has had a positive start to 2020 in terms of price appreciation, benefiting from the US-Iran conflict followed by more Craig Wright and BSV drama.
Bitcoin has had an eventful start to 2020 after a lackluster holiday season in December. Firstly it was the US-Iran conflict escalating from January 3, 2020, resulting in price appreciation for gold, as well as Bitcoin. Thet price rally took BTC from under $6,900 to over $8,450 as market participants highlighted the digital asset’s foray into the safe-haven category.
After de-escalation between the two countries, Bitcoin prices also cooled off to around $7,600, but now with a curious Bitcoin SV rally lifting the entire market, Bitcoin has also gained around 6% to surpass $8,500.
Why is Bitcoin SV rallying?
Bitcoin SV was founded by the controversial Craig Wright, who has long claimed to be the inventor of Bitcoin, Satoshi Nakamoto. While his claims have been ridiculed in the crypto community, he recently had a positive judgment in his legal fight, giving him until February 3, 2020, to furnish the private keys which unlock the Tulip Trust, holding billions worth of some of the earliest mined Bitcoins.
If Craig Wright is able to prove that he has access to early Bitcoin stashes (and by association, that he was part of the original inventors of Bitcoin), Bitcoin SV stands to appreciate considerably, since Wright is expected to sell Bitcoins to support BSV.
What does this mean for Bitcoin?
Bitcoin is the leading cryptocurrency and the face of digital assets. It ended 2019 as the best investment of the decade and is on course for adoption across various industries. Even if Wright is able to prove that he is Satoshi Nakamoto or part of the team behind Bitcoin, it is not possible for him to shut the network down.
How likely is it that Craig Wright will get access to the early Bitcoins’ stash?
Even in the recent judgment, the judge has shown skepticism regarding Craig Wright’s claims and has highlighted inconsistencies in his story:
"Given the defendant’s many inconsistencies and misstatements, the court questions whether it is remotely plausible that the mysterious ‘bonded courier’ is going to arrive, yet alone that he will arrive in January 2020 as the defendant now contends," said the court order dated January 10.
In light of this, and Wright’s history in the matter, it is unlikely that he will be able to prove that he is Satoshi Nakamoto or that he has control over the initial Bitcoins.
Meanwhile, BSV holders can profit from this swift appreciation, taking it from under $100 on January 1, 2020, to over $200 today - but it remains to be seen how long this price range will hold.