HBO exposes the creator of Bitcoin. Does it matter?

A recent HBO documentary claims to have revealed the identity of Bitcoin’s creator, pseudonymous Satoshi Nakamoto. This is a bold statement, especially since Peter Todd – the man named by the documentary’s creators – vehemently denies it.

If you’re thinking about buying Bitcoin (or already own it), you might be wondering what all the fuss is about and wondering if it matters. Answer: yes, it matters. Satoshi may not be associated with Bitcoin today, but its founder is believed to own a significant amount of the currency. So much so that selling even part of it could destabilize the entire market.

Could the real Satoshi Nakamoto please stand up?

Bitcoin was developed more than 15 years ago as a way to cut out central banks and other intermediaries from financial transactions. The author of the document, which outlines the philosophy and technology of the blockchain, is Satoshi Nakamoto, who also mined the first block in the Bitcoin ledger.

Several years later, Satoshi disappeared. The last official message from Satoshi on the Bitcoin forum appeared in 2010. An email from 2011 said the creator had moved on to other things. That was the last anyone heard from Satoshi Nakamoto, the enigmatic figure behind the world’s first digital currency.

There have been several high-profile revelations about Satoshi over the years, and none of them have stuck. More recently in Electric Money: The Secret of Bitcoin, Director Cullen Hoback names a Canadian developer named Peter Todd. Todd says he is not Satoshi and vehemently denies the documentary’s claims.

Why Bitcoin’s Anonymous Founder Matters

Cryptocurrency is now a nearly $2.4 trillion industry that is becoming more popular every month. Thus, it is unlikely that the identity of the founder (or founders) remains a mystery.

It’s understandable that Satoshi would like to stay out of the spotlight. The combination of transparency and anonymity is a key part of the Bitcoin ethos. There is an idea that we should be able to make transactions without oversight from governments or banks. Additionally, the blockchain was designed to be governed by consensus, and Satoshi’s disappearance made this possible by removing the figurehead.

Blockchain experts believe that Satoshi could store up to 1.1 million BTC. This is about 5% of the total BTC in circulation and is stored in a wallet that has not been touched since the birth of Bitcoin. Arkham Intelligence, a company specializing in blockchain de-anonymization, traced the coins to more than 22,000 addresses.

With Bitcoin currently trading at around $67,000, Satoshi’s assets total over $73 billion. This puts Satoshi among the richest people on the planet – at least on paper.

As an investor, this worries me. If Satoshi ever decided to sell these coins, it would send shockwaves through the market. There is some confidence that these funds were not affected. But this is another risk that Bitcoin investors should be aware of.

Crypto investing is about minimizing risk

Cryptocurrencies have delivered incredible returns over the past decade. The potential for huge profits makes Bitcoin and other digital currencies attractive to investors. On the other hand, cryptocurrency can be extremely volatile and there is a risk of prices falling to zero.

As an investor, Satoshi’s Bitcoin stash is one of many risks to be aware of. This is why some have speculated that the very act of revealing Satoshi’s identity could be shaking up a hornet’s nest. Not only could this create problems for the creator of Bitcoin, but it could also trigger the sale of some of that huge pile of Bitcoins.

It is important to recognize the changing regulatory environment and the evolution of the underlying technology. We don’t know how the technology will develop or what impact increased regulation might have on investors. Another problem is the crypto exchanges themselves. As we saw with the collapse of FTX and other platforms, there isn’t much investor protection in crypto right now.

If you want to buy cryptocurrency, make sure you use a reputable exchange or brokerage company. For example, Robinhood is a crypto broker that stores most digital assets offline in cold storage. Click here to open an account and learn more about how Robinhood keeps your cryptocurrency safe.

Bottom line

Ultimately, more important than Satoshi’s personality is the fact that one person can control a stash of 1.1 million BTC worth tens of billions of dollars. One of the best ways to minimize risk is to only invest money you can afford to lose, and make sure that cryptocurrency only makes up a small portion of your portfolio.