Bitcoin has emerged as a game-changer in world-economics attracting millions of users and buyers. An international digital currency that took the world by a storm at the start of the decade still continues its run. Rewarding investors handsomely, and turning them into millionaires has made this commodity very valuable. However, one of the most fascinating aspects of Bitcoin is its founder, Satoshi Nakamoto. This mystery remains unsolved as people know little about him. After releasing this commodity which forever changed the dynamics of international economics, he disappeared. Here’s a look behind the scenes at the mystery and the success of the Bitcoin.
What is Bitcoin?
Bitcoin is a type of decentralized digital currency or cryptocurrency, having no banks or administrators. This currency goes from one person to another, without relying on middle-men, via a network. The system works on the principle of block-chain technology through which transactions are verified and recorded in a public ledger. The idea started taking shape in 2008 by a person or group who used the pseudonym Satoshi Nakamoto. The platform went open source in 2009 and quickly gained popularity. People started trying to learn more about, and ‘mine’ these bitcoins to exchange them for other currencies and products. By 2017, over 4.8 million unique users had their own cryptocurrency wallets.
Nakamoto Creation of the Bitcoin
In August 2008 the domain name “bitcoin.org” was registered and within a couple of months, Satoshi Nakamoto authored a paper titled “Bitcoin: A Electronic Cash System”. It came out as open-source software in January 2009 with Nakamoto’s identity remaining unknown. The author himself mined the first block, called the genesis block two days after launching. Hal Finney became the first receiver when Nakamoto sent him 10 bitcoins, and soon enough other people joined the chain. The first commercial exchange occurred in 2010 when 10,000 coins gave Laszlo Hanyecz two Papa John’s pizzas. Since then, the coin has become an international phenomenon and currently, one single Bitcoin costs around 5.5 lakhs!
Disappearance and Mystery
Nakamoto mined around a million bitcoins and disappeared in 2010, leaving everyone in shock. Before leaving, he handed over the network key to Gavin Andresen, who became the lead developer at the Bitcoin Foundation. Silk Road was a major investor early on, carrying out transactions worth more than $214 million. The coin started 2011 at $0.30 and grew to $5.27 by the end of the year, having hit $31.50 in June. Alternate coins soon came out with the first one being Litecoin, which came out in 2011. A year later, Bitcoin rose to $13.30 and in the same year, investors and developers found the Bitcoin Foundation.
Explosion and Growth
In 2013, the industry really exploded and the Bitcoin grew exponentially, starting the year at $13.30 and ending it at $770. The same year, FinCEN built some regulatory guidelines for the bitcoin, making it a legal entity. A huge hit came in late 2013 when the People’s Bank of China banned Chinese institutions from utilizing bitcoins. After two years of constantly rising and falling prices, in 2016, the prices steadily rose to $998. In 2017, the prices sky-rocketed, hitting their highest value of $19,783.06 on 17th December 2017. In 2018, the prices fluctuated, mostly staying above $5000, being negatively affected by hacks and thefts. Also read
Who is Nakamoto?
As the Bitcoin grew, Nakamoto’s importance grew with it, with him being a figurehead to the entire institution of digital currency. Most discussions regarding the future development of the bitcoin constantly feature his name. Also, the founder also holds cryptocurrency worth around $5.8 billion, making him an important investor. While people made numerous efforts over the years, the search for Nakamoto’s identity has proved difficult and elusive. Here’s a look at the three most probable candidates.
In 2014, Newsweek stated that Dorian Nakamoto is Satoshi Nakamoto via an article, creating a storm within the crypto-environment. The article claimed several similarities between the two, including a Japanese connection and similar philosophies. However, Dorian denied these claims, but still profited from it as people gifted him 67 bitcoins worth $273,000.
Australian scientist, Craig Wright announced in 2015 that he had been involved with bitcoin for a while. This led to large-scale investigations with people claiming he was Nakamoto. However, over time, the proof came out which unraveled Wright’s claim to being Nakamoto. Even Ethereum cofounder Vitalik Buterin, who is in most cases silent came out against him. Conspiracy theorists have even stated that the founder could be a group of companies. For example, Samsung + Toshiba= Satoshi and Nakamichi +Motorola=Nakamoto! Like “Finding Nemo”, the quest for finding Satoshi Nakamoto is on, and let us hope we get a name soon enough! However, in spite of this mystery, the industry continues to grow, being already worth billions of dollars.
Being a cinephile with a love for all things outdoorsy, Athulya never misses a chance to chase inspiring stories or poke fun at things, even when the subject is herself. Currently pursuing a degree in mechanical engineering, she is someone innately interested in technical and scientific research. Music reviews and op-eds define her as they allow her to explore different perspectives. Though sometimes she thinks she makes more sense playing the guitar than she does while writing.