Satoshi Nakamoto. That name has been driving the world crazy for over a decade now. Who is it? A single person? A group? A man? A woman? An American? A brilliant Japanese recluse? A government? No one knows.
Bitcoin’s creator is hiding perfectly well behind that pseudonym. A recent HBO documentary that aired on October 8 said that Peter Todd, a prominent cryptographer and early Bitcoin contributor, is Satoshi.
But it is a claim so absurd that the community has been having a laugh about it for days now, with memes.
Is the Peter Todd claim a joke?
Now here’s the thing. If we ever find out who Satoshi really is, it won’t just be another fun piece of trivia. It would blow the whole industry apart.
Bitcoin and the entire market could come crashing down. The very anonymity that has kept Bitcoin decentralized and free of any single person’s influence would be gone.
Imagine the sheer chaos if Satoshi’s identity were revealed, especially if that person holds the rumored 1.1 million BTC, worth about $66 billion today. You don’t need to be a genius to see the disaster that would cause.
The evidence that HBO put forward to support their ridiculous claim was Todd’s involvement in Bitcoin’s early days and his use of pseudonyms, just like Satoshi.
But Todd isn’t having it. He’s called the idea “ludicrous.” We’ve been through this before, after all. People have been throwing out names for years, and no one’s gotten it quite right yet.
Still, the fact that we’re even talking about this shows how much interest there still is in finding Satoshi.
Satoshi’s identity would destroy Bitcoin
Here’s the nightmare scenario. Satoshi’s true identity is revealed. Remember, this person or group controls 5% of all Bitcoin that will ever exist.
Traders would panic, thinking Satoshi was about to cash out. Confidence would evaporate. The value of Bitcoin could drop like a rock. If you thought the 2022 crypto winter was bad, wait until you see this.
Satoshi’s unveiling would also undoubtedly attract a lot of unwanted regulatory attention. Bitcoin has always operated outside the bounds of traditional finance.
If governments suddenly had a name and face to attach to it, they will ramp up efforts to regulate, control, or even shut down parts of the crypto world.
And if Satoshi turned out to be someone controversial or connected to illegal activity, that would make things even worse.
Criminal charges could come flying in, depending on what country Satoshi is in and what they’ve been up to. Remember Silk Road?
There’s also the question of civil lawsuits. People or companies that have lost money through scams or illegal use of Bitcoin might see this as an opportunity to go after the creator, blaming Satoshi for enabling the loss of their funds.
These lawsuits could stretch on for years and make things even messier. Then there’s the intellectual property fight.
Craig Wright, the Australian computer scientist, has claimed for years that he’s Satoshi. But so far, he hasn’t convinced anyone.
If Satoshi were unmasked and proved Wright wrong, it could set off a legal battle over who owns the rights to Bitcoin’s white paper or the technology itself.
Companies that have built products or services based on Bitcoin might find themselves caught in the middle, not sure who they owe licensing fees to, if anyone.
Economic and financial fallout beyond crypto
The shockwaves from revealing Satoshi could spill over into the traditional financial system. Banks and major financial institutions have slowly been warming up to the idea of integrating the blockchain into their services.
The largest asset manager on the planet owns hundreds of thousands of Bitcoins right now. These guys could rethink their whole strategy.
They don’t want the reputational risk of being associated with someone tied to illegal activities or a financial collapse.
And if the Oval and regulators are breathing down their necks, they might decide it’s not worth the hassle anymore.
Meanwhile, the selling pressure from crypto investors and Wall Street might crash the global economy, especially with how rocky it already is right now.
Politically, things could get even more complicated. Bitcoin has become a hot-button issue in political circles this year.
People would quickly scamper to find any ounce of political alliance for Satoshi and judge him based on that, as they tend to.
And let’s not forget the taxman. If Satoshi still holds all that Bitcoin, they could be looking at a huge tax bill.
The IRS and tax authorities in other countries would love to get their hands on some of that $66 billion.
And if Satoshi decides to sell, they’ll have to pay capital gains taxes on the billions they’ve made since Bitcoin was worth pennies.
