What Would Happen To Bitcoin If Satoshi Nakamoto’s 1 Million Coins Moved
Most bitcoin transactions go unnoticed. One bitcoin gets transferred to another person on the bitcoin blockchain. However, there’s one set of bitcoin wallets whose addresses are watched every day. If even one “satoshi” should move from any of Satoshi Nakamoto’s bitcoin wallets, the entire bitcoin community will collectively freak out.
Satoshi Nakamoto’s bitcoin funds have been locked since the earliest days of bitcoin. Satoshi has never moved his coins. They’ve remained viewable on the bitcoin blockchain for anyone to see.
Here’s the thing: Satoshi Nakamoto is thought to own at least one million bitcoins. If even one satoshi of those one million bitcoins were to move, it would cause all hell to break lose in the cryptocurrency community.
What exactly would happen to the crypto community if Satoshi Nakamoto suddenly started spending his bitcoins? How would we handle it?
It’s hard to answer that question. However, Bitcoin.com recently posed the question to its readers. They had a few different theories about how Satoshi moving his coins might work out. Make no mistake, however, that they believe any movement of these coins would be a significant event:
“Speculating about what would happen if Satoshi’s coins were to move is bitcoin’s wargames equivalent. This isn’t conjecture for the sake of it, in other words: it’s a serious exercise for an event that would have serious repercussions if it were to materialize. Suppose you wake up tomorrow to learn that one of Satoshi’s estimated one million BTC, after lying dormant for almost a decade, has moved to the Bitfinex hot wallet.”
It’s highly unlikely that no single other person in the world owns more bitcoin than Satoshi Nakamoto. Nobody has ever simultaneously moved one million bitcoin. Selling that much bitcoin would crash the market.
If Satoshi Is A Group Of People, Then The Movement Of Bitcoins Could Signal Dissent
Many people believe Satoshi Nakamoto to be a group of people. Some people claim Craig Wright and Hal Finney teamed up to create bitcoin, for example. Others claim Hal Finney teamed up with Gavin Andresen or Nick Szabo.
If Satoshi Nakamoto is a group of people, and Satoshi’s bitcoins suddenly move, then it could signal dissent within that group. Craig Wright, Gavin Andresen, and Nick Szabo are all still alive. Hal Finney, the person who received the world’s first bitcoin transaction from Satoshi Nakamoto, died in 2014.
If Satoshi Nakamoto is a group of people, then it could mean that only one third of Satoshi’s bitcoin stash would move at once. One rogue member of the group, for example, might choose to sell his or her share. 330,000 bitcoins might hit the market instead of 1 million – although it would still have devastating effects.
It Could Mean Satoshi Got Doxxed
There’s another possibility. If Satoshi Nakamoto’s bitcoins start to move, then it could mean Satoshi believes he’s been “doxxed” – or had his personal information leaked onto the internet.
In this situation, Satoshi Nakamoto could be selling his bitcoins in anticipation of that information spreading across the internet – even if his (or her) identity has not yet been publicly revealed.
Doxxing Satoshi, if it’s even possible, could attract the attention of authorities – including tax authorities – to Satoshi. He or she might choose to sell and disappear before the information appears online.
Satoshi Is A Government Agency, And The CIA Or NSA Is Waiting For The Perfect Time To Crash The Markets
Some people believe Satoshi Nakamoto was created by the US Federal Reserve, the CIA, the FBI, the NSA, the KGB, a global banking conglomerate, or some other organization.
It’s certainly as possible as any other explanation for Satoshi. Supporters of this theory argue that bitcoin was too complicated for any single person or group of people to create.
If that’s the case, and Satoshi’s coins are controlled by a government or a bank, then that government may be using their stash of bitcoins as a secret weapon. Owning 5% of the total supply of bitcoins is like having a backdoor to bitcoin’s code. This organization might wait until bitcoin starts posing a legitimate threat to the global banking system or global security, then make their move and sell the coins to permanently ruin bitcoin’s integrity.
Satoshi Sells, Leading To Short-Term Losses And Long-Term Gains
Perhaps the most likely scenario is that Satoshi’s coins move without any information being revealed about Satoshi’s identity. This would cause the market to drop significantly as supply exceeds demand. Prices would drop enormously.
However, in the long run, it could cause prices to go up even higher. If Satoshi sold his bitcoins, then it would allow more people to join the bitcoin community. It also takes some of the risk out of investing in bitcoin: the world’s biggest bitcoin stakeholder no longer holds bitcoin, and that takes away some risk from the market. After Satoshi’s coins are sold, it means no single party has the power to significantly crash the market.
If Satoshi Nakamoto's 1 Million Coins Moved Conclusion
How would you handle Satoshi’s bitcoins moving? Would you panic sell in anticipation of a price drop? Would you buy more bitcoins because it means Satoshi has “returned from the dead” to lead bitcoin to new horizons? Or would you continue hodling? We may never have to answer these questions. Or, we may need to answer it tomorrow. Nobody knows.