Bitcoin: The creator of Bitcoin remains mysterious for a reason – uncapping it could bring them down

The first statue of pseudonymous bitcoin creator Satoshi Nakamoto, unveiled in September 2021 in Budapest, wears a hoodie with the bitcoin logo engraved and his face sculpted with vague lines to represent Nakamoto’s anonymity – one of the most great mysteries of recent times. Elon Musk recently embarked on this identity controversy during a podcast interview (bit.ly/3eJs5s2) with MIT artificial intelligence researcher Lex Fridman, the CEO of Tesla said he believed the computer scientist Nicholas Szabo, who proposed the creation of the BitGold digital currency in 1998, ticks all the right boxes, even though Szabo has officially denied that he was Nakamoto.

Claimed to be a 46-year-old man based in Japan, the pseudonym Nakamoto had other suitors – Australian entrepreneur Craig Wright, Finnish economic sociologist Vili Lehdonvirta, Irish student Michael Clear, Japanese mathematician Shinichi Mochizuki, cryptographer. Briton and inventor of bitcoin. predecessor, Hashcash, Adam Back. Even Musk has been touted as a potential creator of bitcoin. Some even think that Nakamoto’s code was too well designed for one person.

The 2021 UK dark comedy movie directed by Tom Sands, Decrypted, is about a team from the US National Security Agency who kidnaps Nakamoto and tortures him in an attempt to reveal information that will destroy the entire security industry. cryptocurrency. That Nakamoto managed to keep his pseudonym while publishing his October 2008 article, “Bitcoin: A Peer-to-Peer Electronic Payment System” (bit.ly/3EQgPVF), starting the network, following it with a last email in April 2011 is no less of a thriller.

Some believe that Nakamoto is dead (possibly American computer scientist Hal Finney who died in 2014) and therefore remains anonymous. Or maybe he’s in jail, like the programmer raised in Zimbabwe and South Africa and international crime mastermind Paul Le Roux, keeping him out of the public eye.

Banksy’s anonymity may be for Nakamoto’s own safety. Bernard von NotHaus was convicted in 2011 for creating his own private currency in the United States, the Liberty Dollar. And Ross Ulbricht, the creator and operator of the infamous Silk Road dark web marketplace, was sentenced to life in prison in 2015.

The bitcoin saga can be illustrated by a hypothetical story. Suppose you visit a samosa stand on the street every night. With your sponsorship and that of a few of your friends, its popularity skyrockets and the price of samosa becomes 10 to 5 previously each. Soon thousands of people start to gather every day. As the samosa seller is only able to make 500 coins per day, he starts selling samosa coupons instead, “opened” to get a samosa any day.

People start buying them elsewhere at a higher price and “hold onto” them. Someone starts other economic activities by buying, for example, a pizza with a coupon. A parallel monetary system is launched. Suddenly the samosa vendor disappears. There is no samosa, but lots of coupons are circulating – some bought for 10, while others for up to 10,000.

Coupon trading continues, and by generating new coupons using high-capacity computers, the total number is limited to 21 million. The enigmatic samosa seller may have saved a few coupons for himself – that he could sell at some convenient time. What if the “samosa vendor” – Satoshi Nakamoto – was unmasked now?

About a year ago, cryptocurrency trading platform Coinbase said that if Nakamoto was caught, it could cause bitcoin prices to drop. If Nakamoto chooses to transfer his bitcoin cache – which would represent nearly 5% of the entire bitcoin market – it could destabilize the entire crypto market.

Additionally, any comments from Nakamoto could be interpreted as investment advice leading to price movements. Litecoin (LTC) creator Charlie Lee sold all of his holdings in LTC due to such a possibility. Ethereum creator Vitalik Buterin isn’t too keen on the community giving him so much importance, either. As Adam Back suggested, “In order for bitcoin to keep a commodity-like perception, I think it’s a very good thing that Satoshi is kept out of the public eye.”

For the moment, Nakamoto’s identity remains “cryptic”. Bitcoin, certainly, has outgrown its creator (s). Unraveling the mystery of Nakamoto, however, has momentum for future thrillers.


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