Why we want to uncover Satoshi’s identity, and what changes if we do

Unravel the mystery surrounding Bitcoin’s creator, Satoshi Nakamoto, and explore the potential impact of their identity revelation on the crypto market.

Bitcoin (BTC), the most well-known cryptocurrency globally, has recently made headlines by reaching an all-time high valuation. Despite its fame, the identity of its creator, known only as Satoshi Nakamoto, remains a mystery.

Shortly after collaborating with other developers to refine the Bitcoin code, Satoshi vanished from public view around 2011. Since then, numerous theories have emerged regarding this person’s true identity.

Unraveling the mystery: who is Satoshi Nakamoto?

Conversations about Satoshi’s real identity, are usually built around two ideas: Satoshi could be the collective pseudonym for a group of people who worked together to build the Bitcoin project, or it could have been a cover for a single person.

Those who believe it was just one person behind the alias have floated several names over the years of people who believe the Satoshi glove fit. Let’s look at some of them:

Nick Szabo

Leading the pack is Nick Szabo, a renowned cryptographer and legal scholar. Many have pointed to Szabo’s extensive work on digital contracts and his creation of Bit Gold, which shares striking similarities with the foundational concepts of Bitcoin, as compelling evidence for his candidacy as Satoshi Nakamoto.

Szabo has been involved in decentralized cryptocurrencies since their early days. In 2013, a blogger named him as a potential creator of Bitcoin, further fueling speculation about his identity. However, despite these endorsements, industry experts caution that there is no concrete evidence linking Szabo to Satoshi. While his work aligns with Bitcoin’s principles, there really is no conclusive proof of his involvement.

Hal Finney

Another popular contender for the Satoshi title is Hal Finney. The American computer programmer and cryptographer holds the distinction of being the first person to receive Bitcoins from Satoshi. According to crypto lore, Satoshi sent Finney ten Bitcoins in a test transaction, marking a significant moment in the cryptocurrency’s history.

However, in October 2023, a prominent blogger in the crypto community cast doubt on the theory that Finney was Satoshi Nakamoto. The blogger presented evidence suggesting that Finney, who passed away in 2014, was engaged in a running race when Satoshi was actively involved in responding to emails and conducting Bitcoin transactions.

Adam Back

Another name that regularly pops up in the Satoshi conversation is Adam Back, a British cryptographer and cypherpunk. Those who believe Back is the Bitcoin inventor often highlight his creation of the Hashcash system, integral to Bitcoin’s proof-of-work (PoW) mechanism, as a significant factor supporting his candidacy.

There have been long-standing rumors about Adam Back being a part of Bitcoin’s creation. However, the recent release of email exchanges between Adam Back and Satoshi Nakamoto, into the U.K. court records in February 2024 has diminished these speculations.

Adam Back denied the rumors, claiming he was the real Satoshi Nakamoto.

Honorable mentions

B-money creator Wei Dai and late privacy advocate Len Sassaman have also been mentioned as possible real-life identities of Satoshi Nakamoto.

Wei Dai’s B-money proposal outlined a system for secure and private transactions without a central authority. The system relied on cryptographic techniques to enable users to transact directly with each other in a decentralized manner. While b-money was never implemented as a fully functional system, it is considered a precursor to Bitcoin.

Sassaman’s connections to key cryptographers and emphasis on privacy also positioned him as a noteworthy contender in the search for Nakamoto’s identity.

Sassaman was involved in various projects related to privacy and cryptography, including developing the Mixmaster anonymous remailer system, which allows users to send anonymous email messages. He was also a key contributor to creating the GNU Privacy Guard (GPG), an open-source implementation of the Pretty Good Privacy (PGP) encryption software.

Unlikely candidates and disputed contenders

Other less believable candidates for the Bitcoin creator title include Japanese mathematician Shinichi Mochizuki, X owner Elon Musk, and engineer Dorian Nakamoto.

Australian computer scientist Craig Wright also makes it to the list. In 2016, Wright came forward claiming to be Satoshi. However, on March 14, 2024, a U.K. high court judge delivered a hammer blow to Wright’s claims.

This occurred in a case where the Crypto Open Patent Alliance (COPA), a digital asset nonprofit created to ensure crypto technology is free from patents, asked the court to declare that Craig Wright did not invent Bitcoin. Their request was based on the alleged fabrication of evidence and discrepancies in Wright’s story.

Many have also expressed doubts about Mochizuki’s limited background in computer science, Musk’s sparse connections to the early Bitcoin community, and the media confusion surrounding Dorian Nakamoto’s name. Musk himself has previously denied any claims of being the founder of Bitcoin.

Dorian Nakamoto gained public attention in 2014 when he was placed front and center in a Newsweek article as the possible creator of Bitcoin.

The article made much ado about his last name, which was similar to that of the pseudonymous Satoshi. However, Nakamoto denied any involvement in the creation of Bitcoin and stated that he had only a limited understanding of the cryptocurrency.

Why do we care who Satoshi is?

So, why are people so obsessed with knowing who Satoshi Nakamoto was? Firstly, we love a big mystery. Outside the Loch Ness monster, there are probably very few mysteries bigger and more intriguing than the quest to uncover Satoshi’s real persona.

Moreover, the significance of this person’s invention cannot be overstated. Once regarded as a fringe oddity, Bitcoin has ascended to become a formidable asset class, especially after the U.S. Securities and Exchange Commission (SEC) gave the green light for spot Bitcoin exchange-traded funds (ETFs) in early 2024.

Bitcoin ETFs, which give investors exposure to the cryptocurrency’s price movements without directly owning them, helped push the coin’s price to an all-time high above $73k and have resulted in billions of dollars worth of inflows for major investment firms like BlackRock and Fidelity.

Given the current state of the BTC market, the potential impact of Satoshi’s holding, estimated at over 1 million Bitcoins in some quarters, cannot be sniffed at. If even half of those coins were to enter the market, they would profoundly affect the cryptocurrency’s price.

However, beyond the financial implications, Satoshi’s steadfast commitment to anonymity adds to the allure of Bitcoin’s lore. Despite possessing a potential fortune worth billions, this person has never touched or traded any of the original Bitcoins. Preserving this anonymity over personal gain imbues the Bitcoin story with a sense of mystique and reverence.

What happens if Satoshi Nakamoto’s identity is revealed?

Accompanying the question of who Satoshi Nakamoto is, there is worry about the effect unmasking the person or people behind that pseudonym would have on crypto.

Foremost among these potential impacts is the specter of market volatility. It’s not too farfetched to think a sudden disclosure of Satoshi’s identity would trigger a frenzy of activity among investors and traders. The uncertainty surrounding Nakamoto’s persona has long been a point of fascination, and a definitive revelation could incite both euphoria and apprehension within the market.

Furthermore, the unveiling of Satoshi Nakamoto could herald significant shifts in the price of Bitcoin. Should the revealed identity command respect and credibility within the crypto space, it could inject newfound confidence into Bitcoin, potentially sparking an even greater surge in its price.

Conversely, if the disclosed individual brings forth controversies or doubts, it could prompt a mass exodus of investors, precipitating a sharp decline in Bitcoin’s value.

Beyond its immediate market implications, the disclosure of Nakamoto’s identity could also carry legal and regulatory ramifications. If the revealed individual is entangled in legal troubles or regulatory scrutiny, it could cast a shadow over the entire cryptocurrency space, influencing the stance of authorities and governments towards digital assets.

Moreover, the reaction of the crypto community itself would play a pivotal role in shaping market sentiment. Depending on how Nakamoto’s identity is perceived within the community, it could either foster solidarity or sow discord among enthusiasts and investors alike. Such internal dynamics could, in turn, exert a profound influence on the crypto market’s trajectory, given Bitcoin’s outsized influence on it.

In summation, the unmasking of Satoshi Nakamoto would constitute a seismic event in the world of cryptocurrencies, with repercussions that extend far beyond mere market fluctuations. It would serve as a litmus test for the resilience and adaptability of the crypto ecosystem while also prompting soul-searching reflections on the nature of decentralization and anonymity in the digital age.

Read more: What can the past Bitcoin halving cycles tell us about its future?