Who created Bitcoin? Unveiling BTC’s cryptic origins

On a sunny day in 2021, crowds gathered outside Budapest's Graphisoft Park to witness the unveiling of a bronze bust honoring Bitcoin's (BTC) enigmatic founder, Satoshi Nakamoto. But unlike traditional statues that portray well-known figures, the sculptors faced a unique challenge: Nakamoto’s identity is a mystery. 

Without any established image to rely on, the first-ever Nakamoto statue portrays a symbolic lone coder wearing a hoodie. Its reflective surface invites viewers to see themselves in the figure, reinforcing the message that “we are all Satoshi.”

While everyone in crypto knows the name Satoshi Nakamoto, the identity of the person who created Bitcoin remains unknown. This deliberate anonymity has become integral to Bitcoin’s mystique and decentralized ethos. 

Read on to learn what we do know about Nakamoto and how their cryptic messages continue to spark debate. 

Who created Bitcoin? The legend of Satoshi Nakamoto 

Satoshi Nakamoto is the pseudonymous creator of Bitcoin and widely regarded as the founder of cryptocurrency. They first gained attention in October 2008 after publishing a whitepaper that outlined a decentralized, cryptographically secure currency for peer-to-peer (P2P) transactions. Titled "Bitcoin: A Peer-to-Peer Electronic Cash System," it originally appeared on The Cryptography Mailing List hosted on metzdowd.com, where it was circulated among cryptography experts before reaching a broader audience online.

It took Nakamoto months to implement these theoretical concepts with the creation of Bitcoin’s first block in January 2009. Known as the "Genesis Block," this milestone included a notable message: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," positioning Bitcoin against the backdrop of the 2008 financial crisis.

In the early days after Bitcoin's launch, Nakamoto worked to secure the network and mined a significant portion of BTC, collaborating with a select group of early adopters. Notably, they sent the first Bitcoin transaction to cryptographer Hal Finney, whom some speculate could have either been Nakamoto or directly involved in Bitcoin’s creation. 

Nakamoto's final known activity came in 2011 when they handed over Bitcoin’s development to Gavin Andresen. Although there have been a few movements from Satoshi-era wallets, suggesting Nakamoto is still active, no further official communications have surfaced since.

Who is Satoshi Nakamoto? Foundational facts 

There’s no dispute that Satoshi Nakamoto designed and launched the Bitcoin protocol, nor that they possess significant expertise in cryptography and P2P software development. This technical prowess, combined with the reference to central banks in Bitcoin's Genesis Block, points to a clear distrust of centralized financial systems and likely inspired the creation of a decentralized digital currency.

Beyond their technical skill, even Nakamoto's chosen pseudonym adds to the mystique. While the name’s true origin remains unclear, many believe it carries symbolic weight. In Japanese, "Satoshi" can mean "wise" or "clear-thinking" (among other interpretations), while "Nakamoto" roughly translates to "central origin." Some interpret this as an intentional reflection of Bitcoin's innovative design and its role as a cornerstone of a new financial era.

Although Nakamoto’s true identity remains a mystery, two notable figures are connected to Bitcoin’s early days and its creator: Finney, a strong vocal advocate for cryptocurrency, and Andresen, who assumed leadership of Bitcoin’s development after Nakamoto’s 2011 exit.

Why is Satoshi Nakamoto's identity anonymous? 

Everything surrounding Satoshi Nakamoto remains speculative, including the reasons behind the anonymity. However, there are several theories behind their decision to remain unknown.

• Legal protection: Developing a virtual currency that challenges governments, central banks, and major financial institutions could have serious legal repercussions. Nakamoto may have feared retaliation from powerful entities with the resources to pursue legal action and potentially imprison them.
• Commitment to privacy: Privacy is a fundamental principle among cryptocurrency advocates. Nakamoto may have valued personal privacy, choosing to live out the ideal of data protection by keeping their identity concealed. 
• Decentralization: By remaining anonymous, Nakamoto ensured that Bitcoin wasn’t associated with a single individual or entity. This enhances the decentralized, community-driven nature of Bitcoin, reinforcing its independence from centralized control and influence.

The Satoshi shortlist: Possible identities of Satoshi Nakamoto 

As Bitcoin gained prominence in the financial world, investigative journalists began questioning early crypto developers about their involvement with the project. Most have denied being Satoshi Nakamoto, and those who have claimed to be the founder have failed to provide credible proof. However, a few names frequently come up as potential candidates:

Hal Finney and Gavin Andresen

As previously mentioned, Finney – the recipient of the first BTC transaction – had close ties to Nakamoto. Some speculate Finney may have been Bitcoin’s creator, but he only acknowledged his early involvement with the network before his death in 2014.

Regarding Andresen, he played a pivotal role in Bitcoin’s early development, taking charge of maintaining Bitcoin's core codebase after Nakamoto stepped away from the project in 2011. As a senior developer, he led the maintenance of Bitcoin software and actively worked to improve the protocol while fostering its growth within the broader cryptocurrency ecosystem. However, his role attracted controversy, mainly due to his support for the 2016 Bitcoin fork, which led to the creation of Bitcoin Cash (BCH). Despite this, Andresen’s contributions to Bitcoin’s early technical framework and governance remain a significant part of its history.

Peter Todd

Cryptographer Peter Todd reentered the spotlight as a potential Bitcoin creator following the 2024 HBO documentary "Money Electric: The Bitcoin Mystery." Filmmaker Cullen Hoback presented circumstantial evidence, including similarities in writing style, technical expertise, and a cryptic response Todd made to a 2010 Bitcointalk post by Nakamoto.  

Despite these claims, Todd – who played a pivotal role in Bitcoin’s development by enhancing network security, refining consensus rules, and advocating for rigorous protocol testing – has denied being Satoshi Nakamoto.

Adam Back

Some suspect British cryptographer Adam Back may be Nakamoto due to his development of the hashcash system in the 1990s, which used a proof-of-work (PoW) algorithm similar to Bitcoin’s. Despite Back’s early contributions to crypto, he denies being Nakamoto. 

Nick Szabo

Szabo, creator of the Bitcoin precursor “Bit Gold,” is another prominent figure in the cryptography world often linked to Bitcoin. Despite shared ideas and similarities in writing style with the Bitcoin whitepaper, Szabo consistently denies any direct involvement.

Craig Wright

Australian entrepreneur Craig Wright stands out from others on this list, as he has repeatedly claimed to be Nakamoto and has provided what he claims is evidence to support his assertions. However, much of the crypto community remains skeptical of his involvement, and multiple courts have dismissed his alleged proof as forged or insufficient.

Dorian Nakamoto

In 2014, speculation arose around Japanese-American engineer Dorian Nakamoto, whose birth name happens to be Satoshi Nakamoto. Despite sharing some similarities with Satoshi’s supposed background, Nakamoto has repeatedly denied any connection to Bitcoin. 

Does Satoshi Nakamoto own BTC?

Without knowing Satoshi Nakamoto’s true identity, it’s unclear how much Bitcoin they possess – if any. However, some believe that a collection of old Bitcoin wallets – often called “Satoshi-era wallets” – with over 1 million BTC could be linked to Nakamoto. If true, this would make Nakamoto one of the largest Bitcoin holders, with a fortune exceeding $6 billion. 

The inactivity of these early wallets leads some to believe Nakamoto may have passed away or intentionally kept the funds out of circulation to limit Bitcoin's available supply. Nonetheless, occasional reports of transactions from these early wallets continue to spark speculation over Satoshi’s cryptocurrency ownership. 

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Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.