Satoshi Nakamoto: Who is the Founder of Bitcoin?

Satoshi Nakamoto is central to the history of Bitcoin, as he is none other than the creator of Bitcoin (BTC), the pioneer of cryptocurrencies. This invention popularized blockchain technology, which underpins the operation of crypto assets, NFTs, decentralized finance, Web3, etc. Despite his remarkable achievements in innovation, his true identity remains unknown.

There are a few particularly interesting lines of thought that might help us unravel this mystery. Let’s find out who really is the person behind this pseudonym.

What is the origin of Satoshi Nakamoto?

According to his 2012 P2P Foundation profile, Nakamoto was a 37-year-old man living in Japan. His nickname also suggests he was of Japanese origin. However, it’s best not to judge a book by its cover.

Indeed, certain details of his speech suggest that he was actually a native English speaker. He used British English expressions several times, both in messages posted on forums and in comments on the Bitcoin source code. Therefore, he might actually belong to one of the Commonwealth countries.

Moreover, in the first block mined on the Bitcoin network, he referenced an article published in the London Times, indicating a particular link with the British government.

Additionally, the analysis of his activity times on the Internet shows a mismatch with the sleeping hours of someone who lives in Japan. This suggests that Nakamoto might not actually have lived in that country.

What does Satoshi Nakamoto mean?

It can be interesting to know the meaning of this pseudonym, as it might tell us more about Satoshi’s personality. However, keep in mind that a word can have multiple meanings. Therefore, there could be several possible translations.

Translated from Japanese, “Satoshi” can mean “vision,” “clear thought,” “keen mind,” or “wise.” “Naka” can be interpreted as “middle,” “inside,” or “relational.” Finally, “Moto” evokes “the base,” “the origin,” “the foundation,” and “the source.”

Without translating word for word, a possible interpretation could be: “clarity of thought resides in the source.” This almost philosophical phrase could very well match the character.

Moreover, we should not exclude the possibility that this alias is a nod to characters or iconic figures for whom he had a certain admiration.

Why did Satoshi Nakamoto create Bitcoin?

Although there is a mystery surrounding him, the reason that led Nakamoto to create Bitcoin is perfectly clear. Indeed, Bitcoin aims to return control of their money to individuals. Of course, this involves taking power out of the hands of public authorities by deploying a decentralized financial system.

This thirst for freedom was born in a very specific context. At the time, the world was struck by a disastrous financial crisis resulting from the poor management of central and commercial banks.

Specifically, the 2008 subprime crisis was characterized by a liquidity deficit in international financial markets. It was mainly caused by a sharp drop in the U.S. real estate sector. Banks had granted significant mortgage loans to households excessively. Unable to get reimbursed, they went bankrupt and took foreign banking institutions down with them.

This highlighted the vulnerabilities of the traditional financial system and emphasized the urgency of decentralizing currency.

Who is behind Satoshi Nakamoto?

With Bitcoin, Satoshi Nakamoto played the card of confidentiality to the end. Indeed, more than a decade after the creation of the queen of cryptocurrencies, the identity of its author is still a mystery. At first glance, one might think it is a single person.

However, some suggest that the robustness of the original project’s source code would have involved the mobilization of a collective intelligence. They conclude therefore that, before the publication of his white paper, Bitcoin was thought out and built around a group of people. That said, if this hypothesis is false, some names often come up within the cryptosphere when it comes to solving this enigma.

Dorian Nakamoto

In March 2014, an article in Newsweek magazine designated Dorian Prentice Satoshi Nakamoto as the creator of Bitcoin.

At the time, this Japanese-American, then 64 years old, was unemployed after having worked for years as a computer engineer on numerous projects, including some in finance.

Leah McGrath Goodman, the journalist who published this information, justified her reasoning by certain similarities between the two individuals. These included their names, computer skills, and libertarian values.

However, Dorian denied this theory. Nevertheless, his private life took a hit since the publication made a lot of noise. This has further intensified the issue of privacy protection. Following this, some members of the crypto community decided to support Dorian through a fundraising campaign. They managed to collect over 100 bitcoins, much to the delight of the wronged man.

Hal Finney

Hal Finney is an American developer who was among the pioneers of the Cypherpunks anarchist movement. He is considered by some to be Satoshi due to his early involvement in the development of Bitcoin.

Indeed, he was the first to publicly join the project, as well as the first to receive bitcoins. After the network’s launch, he continued to be a very active contributor for several years. Besides this commitment, the analysis of his linguistic style shows a striking closeness to the way Satoshi himself expressed himself.

Moreover, at the time, he lived a few streets away from Dorian Nakamoto. This led to the hypothesis that he had borrowed the name of his neighbor to create this mysterious character. After examining the correspondence he exchanged with Satoshi, the person behind this hypothesis concluded that it could not be true.

Nick Szabo

Another pioneer of the Cypherpunks community, Nick Szabo is the creator of Bit Gold, one of Bitcoin’s predecessors.

Since the 1990s, he has had a pronounced penchant for pseudonyms. Moreover, in 1996, he introduced the concept of smart contracts.

More recently, in 2005, he published a post discussing a digital currency devoid of third-party trust. Szabo is also among those who significantly contributed to the construction of Bitcoin from the beginning.

Furthermore, it seems that he also has the same writing style as Nakamoto. However, despite many similarities between the two men, Szabo has denied being Satoshi. It could just be that the latter was inspired by him in his work.

Craig Wright

He is an Australian academic and entrepreneur who has long claimed to be the real Satoshi Nakamoto. He went as far as to fabricate evidence to support his version of the facts. In 2015, a rumor circulated that a hacker had accessed Craig’s messaging and discovered that he and his colleague David Kleiman had actually evolved behind this pseudonym.

In 2019, Wright was awarded intellectual property rights over the Bitcoin white paper and the first version of its source code. In December 2021, he was the target of a lawsuit initiated by the Kleiman family. They claimed half of the alleged Bitcoin fortune of Satoshi, arguing that the two had developed the project together. At the end of this lawsuit, the plaintiff received $100 million. Nonetheless, within the crypto community, Wright is perceived by many as an impostor.

There are several theories about the identity of Satoshi. However, they all refer to men. Yet, the brain behind Bitcoin might actually be a woman. History teaches us that, in the past, it was common for female scientists or writers to publish their work under a male identity. The goal being to enjoy the same interest as their male counterparts.

What is Satoshi Nakamoto’s fortune?

According to Sergio Lerner, a Bitcoin and cryptocurrency specialist, Satoshi holds approximately 1 million bitcoins.

This estimate stems from an analysis of the Bitcoin blockchain in which he relatively precisely isolated addresses that likely belong to Satoshi Nakamoto. Knowing that the maximum supply of bitcoins is capped at 21 million coins, Nakamoto alone holds about 5%. As of October 31, 2022, this wealth amounts to nearly $20.5 billion.

Is Satoshi Nakamoto dead?

In December 2010, Nakamoto chose to withdraw and no longer participate in the developments of Bitcoin’s future. This decision thus took place two years after the publication of his white paper and one year after mining the genesis block.

However, on April 23, 2011, he sent an email to Gavin Andresen, one of the project’s contributors, in which he declared he had “moved on” and felt reassured about the future of cryptocurrency. This was the last time he made contact.