Technology

‘Satoshi Nakamoto is enough to completely destroy Bitcoin’


Even though he disappeared 10 years ago, Satoshi Nakamoto still has the ability to emerge and cause Bitcoin to collapse.

More than 11 years since the birth of Bitcoin, no one knows who the father of this cryptocurrency is. Judging by current market prices, whether as an individual or a group of people, Satoshi Nakamoto – the figure believed to have created Bitcoin – is undoubtedly in possession of one of the largest fortunes in the world.

So any move by Satoshi Nakamoto regarding the amount of Bitcoins in his possession could have a certain impact on the market.

Mysterious character

In August 2008, the domain name Bitcoin.org was officially registered. Two months later, the article “Bitcoin: A peer-to-peer cryptocurrency system” was published by a mysterious account under the name Satoshi Nakamoto. On January 9, 2009, Nakamoto released Bitcoin software version 0.1 on SourceForge and launched the network through mining Genesis blocks (primitive blocks).

According to researcher Sergio Lerner, Satoshi Nakamoto mined about 22,000 blocks with a reward of 50 BTC / block. Before disappearing, Nakamoto had held more than 1.1 million Bitcoins in his hand.

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The identity of the creator of Bitcoin remains a mystery. Photo: Reuters.

Bitcoin only has a maximum of 21 million units. Limiting the total circulating supply is one of the coin’s innovative features. Because of its scarcity, Bitcoin has created a cryptocurrency craze among investors.

In the beginning, the price of a Bitcoin was almost zero, to be exact 0.0008 USD/ BTC. Back 11 years ago, you could capture all the bitcoins that existed for nothing 16,800 USD.

March 2010, an investor with a nickname SmokeTooMuch sell 10,000 Bitcoins in exchange for 50 USD. No other investor is interested in this matter. However, if you decide to pay for SmokeTooMuch50 USD At that point, your assets today will turn into amounts up to 480 million USD.

In the case of Satoshi Nakamoto, this mysterious man has left himself more than 1 million Bitcoin units, equivalent to 4.8% of all Bitcoin in circulation, in his personal wallet. But, since January 2009 until now, this Bitcoin has never been accessed and reused.

Despite possessing a huge amount of assets, crypto analysts believe that Nakamoto has never traded the above Bitcoin. If the father of this coin dies, unless Nakamoto leaves a password to access the wallet, a block of valuable assets 50 billion USD may disappear forever.

Bitcoin will be destroyed if the investor watches Satoshi Nakamoto sell off

According to Matt Green, Professor of Cryptocurrency at John Hopkins University, the figure behind the name Satoshi Nakamoto is enough to completely destroy Bitcoin.

“If you control a large enough amount of Bitcoin, you have the ability to crash the market at any moment. Think of Bitcoin as a rare baseball card (some Americans are passionate about collecting cards with famous baseball players). They are of simple value because of their extremely limited quantity. However, if someone sells hundreds or even thousands of these seemingly rare cards, they will not be as valuable as before, ”said Green.

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Bitcoin exchange markets will collapse if 1.1 million units are sold. Image: Medium.

According to Green, if one day Nakamoto decides to sell all 1.1 million Bitcoins, the Bitcoin market will be in danger of collapsing. However, even if Nakamoto retreated behind the scenes, this character will still have an important role to play in the future.

“If Bitcoin becomes a global currency, Satoshi Nakamoto could be the richest man in the world and hold a higher percentage of Bitcoin reserves than the US government’s gold reserve ratio,” said Ben Yu, a Bitcoin investors living in San Francisco, share.

According to Yu, with about 8,000 tons of gold reserves currently, the US government holds the most gold reserves in the world. However, the country only holds more than 4% of the world gold market share, less than nearly 5% of the Bitcoins Nakamoto owns.

Follow CoinbaseThe fact that the father of Bitcoin appeared could harm the company’s business as well as the stability of the market.

No matter where Satoshi Nakamoto is or who he is, we all know this character has disappeared from the Internet two years after the birth of Bitcoin.

“I switched to something else,” Nakamoto emailed Bitcoin developer Mike Hearn on April 23, 2011. Besides his brainchild, Nakamoto left behind a large collection of documents related to the world’s most valuable cryptocurrency.

Follow Zing / Coinbase

Signs that the father of Bitcoin has just ‘sold out’, the market is about to wave?

The newly transferred Bitcoin has been around since 2010, it could be that of Satoshi Nakamoto, or one of the first to own Bitcoin.

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