Satoshi Nakamoto is Nowhere to be Found



Nothing fires the imagination like an anonymous hero with a secret identity. It’s been an enduring trope since the Scarlet Pimpernel rescued his first aristocrat from Madame la Guillotine. From Batman to the street artist Banksy, each hero has his own reason for donning the mask of anonymity. This phenomenon has come to the world of finance in the person of Satoshi Nakamoto, the so-called father of Bitcoin. He appeared out of the ether in 2008 and disappeared just as abruptly three years later, after establishing the world’s first cryptocurrency. On April 23, 2011, he sent a farewell email to a fellow Bitcoin developer. “I’ve moved on to other things,” he wrote, assuring that the future of Bitcoin was “in good hands.” He has not been heard from since.

Today, Bitcoin is valued at more than $1 trillion, and while Nakamoto’s identity might be simply a matter of speculation for some, it means far more to others: He is said to own over 1 million Bitcoins with a current value hovering somewhere around $60 billion. That’s equivalent to about 5 percent of the total number of bitcoins currently in circulation.

Should the person—or persons—behind the name Satoshi Nakamoto decide to sell just some of this hoard, the transaction would completely upend the cryptocurrency market. Cryptocurrency trading platform Coinbase, which went public on the Nasdaq on April 14, noted the potential revelation of Nakamoto’s identity (and the movement of that person’s Bitcoin holdings) as a risk factor in its IPO filing with the Securities and Exchange Commission (SEC). Coinbase even went so far as to send a copy of the filing to the last known email address for Nakamoto.

Increasingly, financial services behemoths like BlackRock, JPMorgan and BNY Mellon are offering cryptocurrencies and related services to their customers, adding legitimacy to an asset that Berkshire Hathaway’s Charlie Munger once characterized as “contrary to the interests of civilization.”

Bitcoin came to life when Nakamoto published his famous white paper on a cryptography mailing list describing a digital currency that would allow secure, peer-to-peer transactions without the involvement of any middleman, whether that be the government, financial system or a company. These transactions would be tracked through a blockchain, a ledger like those used by any financial institution, except that this ledger would be distributed across an entire network, with exact duplicates held by all participants and visible to all, secured by cryptographic means. There would never be more than 21 million Bitcoin.

Acknowledgement and thanks to:: Robb Report | Rebecca Baldridge
June 13, 2021