A little over 12 years have passed since Bitcoin creator Satoshi Nakamoto sent his last email. Nothing has been heard from him since. For those new to Bitcoin, guessing who Satoshi Nakamoto is is an interesting side note. However, to this day, the identity of Satoshi Nakamoto remains unknown – which is why this is crucial to the future of Bitcoin.

One of the many interesting ideas behind the most famous and decentralized cryptocurrency is that no one is really sure who created Bitcoin - and speculation continues to this day.

Bitcoin first entered the public domain in October 2008, when a man calling himself Satoshi Nakamoto sent a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" to an obscure Cypherpunk email list. A small group of cryptographers debated the paper, but few thought it had any chance of success.

Then, on January 3, 2009, Satoshi Nakamoto gave birth to the Bitcoin network by mining the first block of the ledger.

Summary of Satoshi Nakamoto’s Bitcoin White Paper

In the first block, he embedded the text "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks". This was a reference to the global financial crisis at the time and juxtaposed Bitcoin’s hard-coded, immutable economic system with the traditional banking system and its inflation-ridden fiat currencies.

Over the next few months, Satoshi Nakamoto and a programmer named Hal Finney began troubleshooting and fixing bugs in a revolutionary idea - the first decentralized digital currency - Bitcoin. .

Bitcoin is a fusion of ideas originating from the cypherpunk movement. One of the reasons why Bitcoin may be difficult for newbies to understand is that it intersects with concepts such as currency, technology, philosophy, computing, politics, and more. Or as John Oliver once quipped, Bitcoin is “everything you don’t know about money plus everything you don’t know about computers.”

Satoshi Nakamoto’s Bitcoin Philosophy

In the early days of Bitcoin, Satoshi Nakamoto was a prolific web author. He writes about Bitcoin and answers questions online via email and on the same cryptography mailing list. These writings have been preserved and they clearly show that one of Satoshi Nakamoto's main motivations was to create a decentralized digital currency that was not controlled by a central bank.

In 2011, he wrote, "The fundamental problem with traditional currency is all the trust required to make it work. Central banks must be trusted not to devalue the currency, but the history of fiat currencies is littered with the destruction of this trust. Banks must be trusted It’s possible to hold our money and move it electronically, but they lend it out in one credit bubble after another with very little reserves.”

# decentralized stablecoin# Who is Satoshi Nakamoto?

As stated in the original Bitcoin white paper, the invention of the Bitcoin blockchain was a groundbreaking achievement in computer science. When asked the question "Who invented cryptocurrency?" many people will point to Satoshi Nakamoto, but as the man himself admitted in the concise reference section of the Bitcoin whitepaper, Bitcoin was cleverly built on the field on top of the work of many others.

Nonetheless, it was the proof-of-work consensus algorithm invented by Satoshi Nakamoto that solved the computational problem known as the “Byzantine Generals Problem” that prevents double spending and makes decentralized digital currencies possible. This suggests that Nakamoto was proficient in both economics and computer programming—or it points to a collaborative effort.

It should be noted that before 2008, there is no record of a programmer named Satoshi Nakamoto. Furthermore, neither the email address nor the website used by Satoshi Nakamoto can be traced back to any one source. It is therefore strange why a man with such extensive knowledge would choose to remain anonymous and go to great lengths to protect his privacy.

In April 2011, Satoshi Nakamoto, probably satisfied with the success of the Bitcoin project, sent a final email to the cryptography list, stating "I have moved on to other things. Gavin Andresen and Everyone was in good hands." Satoshi then handed over the source code and disappeared forever.

Today, 12 years later, the Bitcoin blockchain has a market capitalization of approximately $515 billion. This means that the mysterious Satoshi Nakamoto literally appeared out of thin air, invented a new currency that was 100% digital, not controlled by any government or bank, worth over $500 billion, and then disappeared. Weird but true.

How rich is Satoshi Nakamoto?

What makes this story even more intriguing is that since Satoshi Nakamoto mined the first Bitcoins in 2009, when mining Bitcoin quickly and easily was not important, Satoshi is estimated to have around 1 million Bitcoins. How do we know? Because the Bitcoin blockchain is a public ledger, these Bitcoins can be seen on the Bitcoin blockchain, and they have never been moved, despite being worth over $25 billion.

Possible reasons for Satoshi Nakamoto’s anonymity

Satoshi Nakamoto seemed to have the foresight to know that if Bitcoin was to succeed as a decentralized currency, it would need to grow organically, without leaders or figureheads. Therefore, it is likely that Satoshi Nakamoto's identity has dimmed and will continue to do so due to the following reasons.

Equal influence: By not revealing his identity, Satoshi ensured that no individual or group could exert undue influence or control over Bitcoin. The focus is on the decentralized nature of the technology itself, rather than the personality or reputation of Bitcoin’s creator. Satoshi knew that if Bitcoin was to succeed as a decentralized currency, it would need to grow organically, without leaders or figureheads. Any announcements or comments by Satoshi Nakamoto may be misinterpreted or interpreted as investment advice leading to price movements. A similar situation led Litecoin creator Charlie Lee to decide to sell all of his Litecoin holdings. In a Reddit post, Lee explained his decision, saying: “Every time I tweet about Litecoin price, or even just good or bad news, I get accused of doing it for personal gain. Even Some people think I’m shorting LTC! So, in a sense, it’s a conflict of interest for me to hold LTC and tweet about it because I have so much influence.”

Community-driven project: Satoshi Nakamoto wanted Bitcoin to be a community-driven project, where decisions are made based on consensus among participants rather than being influenced by a single authority figure. Remaining anonymous kept Satoshi out of the spotlight and encouraged others to take control of the development and direction of the project. Satoshi emphasized the importance of the technology itself, rather than his (or their) personal identity. By not exposing himself, Satoshi turned his attention to innovative aspects of Bitcoin, such as the decentralized ledger, the proof-of-work consensus mechanism, and the potential for financial empowerment.

Legal and Regulatory Considerations: Anonymity may also have been a way for Satoshi to avoid the legal and regulatory complications that may arise associated with the creation of disruptive technologies like Bitcoin. By remaining anonymous, Bitcoin's inventor avoids potential legal issues or conflicts of interest.

Privacy and Security Issues: By remaining anonymous, Satoshi protected his personal privacy and reduced the risk of becoming a target for hackers, criminals, or government authorities. Bitcoin was designed to be decentralized and censorship-resistant, and Satoshi Nakamoto's anonymity helped maintain that ethos.

avoid the attention of authorities

Let’s delve into the idea that the creators of alternative currencies might attract the attention of authorities and criminals.

A Hawaii resident named Bernard Von NotHaus created a private currency in 1998 that he named Liberty Coin. The currency prospered for a while, but its minting operations were eventually raided by the FBI and Secret Service in 2007. The currency was shut down following a 2009 criminal complaint in which NotHaus was found guilty of creating "a private coin or monetary system to compete with the official coinage and currency of the United States."

Additionally, in 2007, a digital currency called e-Gold was accused of facilitating illegal activity because it did not have sufficient customer information. Its owner was sentenced to house arrest and the company was shut down. This enthusiasm by government agencies to arrest entrepreneurs in the alternative currency space is likely a factor in Satoshi Nakamoto’s strategy.

Finally, Bitcoin is available to everyone. This means it can be used to pay for legal and illegal services, just like fiat currency. However, it has always been a popular payment method on darknet markets, originally gaining notoriety for its use on the now-defunct Silk Road. Ross Ulbricht, the creator and operator of the notorious darknet marketplace, has been sentenced to life in prison for his role in facilitating the trade of drugs and other banned materials.

Ulbricht appealed his decision to the U.S. Supreme Court in December 2017, and he has a shot at being on President Trump's pardon list - but at this time he remains in federal prison. Had Satoshi revealed his true identity, he might have faced a similar fate.

In 2023, under the leadership of Gary Gensler, the SEC aggressively targeted cryptocurrency exchanges Coinbase and Binance, accusing them of selling unregistered securities. The moves appear to be part of a concerted effort to discourage Americans from adopting cryptocurrencies — and punish founders of organizations that promote the use and exchange of cryptocurrencies.

What would Satoshi Nakamoto do?

Satoshi seemed to understand that new concepts, inventions and content are only open to interpretation apart from their creator. Blockchain investor and technology expert Jill Carlson says this is why Bitcoin represents different things to different people. This is why forks happen, and why in every debate there is a vocal faction that asks the question “What would Satoshi Nakamoto do?”

Carlson said, “This inefficiency is also one of the main value propositions of Bitcoin. It does not have a single leader who can answer the question, who can decide to fork, or who can guide the community in one direction or another. Therefore, the network The purpose and value of the asset cannot be destroyed by intent. Often considered a problem, this may be the characteristic that ensures Bitcoin’s staying power.”

Satoshi realized that for Bitcoin to remain decentralized, it could not have a leader or a central point of failure that could be compromised. Confidence in technology needs to be based on objective assessments, not claims by charismatic leaders or organizations. By remaining anonymous, Satoshi gave individuals the freedom to make their own judgments about the technology and determine the value of the asset independently of its creator.

Who is behind Bitcoin?

For years, there has been intense speculation about who created Bitcoin and who might be Satoshi Nakamoto. One man, one woman, an intelligence agency or a small group of dedicated cypherpunks? Here are some of the leading candidates.

Australian programmer and businessman Craig Wright first claimed to be Satoshi Nakamoto in 2016. He provided some evidence which was later found to be inconclusive because it was publicly available from the ledger. He is also accused of forging announcements and blog posts to pass himself off as the real Satoshi Nakamoto. Most people think his claims are fabricated. For example, Ethereum founder Vitalik Buterin expressed his opinion, calling Wright crazy and accusing him of being a liar. Wright has been involved in many legal conflicts over his claims to be Satoshi Nakamoto and has lost several lawsuits. Wright is generally considered a visionary.

Another candidate was Hal Finney. Finney is a well-known cypherpunk and cryptographer who created the first iteration of a reusable proof-of-work system. Finney was the first person to download a Bitcoin client and the first person to receive Bitcoins from Satoshi Nakamoto in 2009. Before his death in 2014, Finney debunked claims that he was Satoshi Nakamoto. After Finney's death, he was cryogenically frozen by the Alcor Life Extension Foundation.

Some consider cryptographer Nick Szabo to be a solid candidate. Before the launch of Bitcoin, he designed the architecture for a decentralized digital currency called Bitgold. Although the architecture never launched, there are similarities to Bitcoin's design. This led to speculation that Saab was Satoshi Nakamoto. However, he has repeatedly denied the accusations.

Finally, another possible candidate is Blockstream CEO Adam Back. A cryptographer and cypherpunk, Buck corresponded with Satoshi Nakamoto and is cited in the Bitcoin white paper. Baker has denied that he is Satoshi Nakamoto, but others have suggested that Baker has previously claimed to have met Satoshi Nakamoto. Buck denies this.

In a 2020 Bloomberg article, Buck once again denied that he was Satoshi Nakamoto and said it was best for Nakamoto's true identity to remain unknown. “At this point, it’s generally accepted that it’s better for Bitcoin’s founders to remain unknown,” he said. “Because Bitcoin is more like digital gold, you wouldn’t want gold to have a founder. For Bitcoin to remain perceived as a commodity, I think it’s a very good thing that Satoshi Nakamoto stays out of the public eye.”

Bitcoin’s future depends on Satoshi Nakamoto’s unknown

While the true identity of Bitcoin founder Satoshi Nakamoto may never be determined, the important thing is that the technology works without his involvement. Additionally, Bitcoin is enhanced by the anonymity of its creator, as people are able to focus on the technology without interference from its creator.

From this perspective, the mystery of Satoshi Nakamoto gives Bitcoin its mysterious origins—a necessary prerequisite for the creation of a new form of money and the birth of a new asset class. Nakamoto’s decision to remain anonymous contributed to the mystique and enduring fascination surrounding Bitcoin and blockchain technology. It allows the focus to be on the decentralized and revolutionary aspects of the technology rather than on the identity or motivations of its creators.

In 2023, cryptocurrencies appear to be under attack from all sides, and for Bitcoin to continue to attract new users and for politicians to be prepared to fight for Bitcoin, it is crucial that Satoshi Nakamoto’s true identity remains unknown.