Theories About Satoshi Nakamoto's True Identity

At the end of November 2024, the crypto community revisited one of the most well-known mysteries in its history. A question worthy of its own “whodunit”: who’s been hiding behind the pseudonym of Satoshi Nakamoto all these years? Theories range from plausible to full-on conspiracies.

In this article, we gathered some of them, so we could try to answer this difficult question together.

Why Does the Personality of Satoshi Nakamoto Matter?

Understanding who Satoshi might be, or the personality traits they embody, could say a lot about the motivations and the vision for Bitcoin in the long run, which causes so much disagreement in the crypto community to this day. Was Satoshi a visionary idealist, a pragmatic engineer, or even an organization with hidden agendas? These questions matter to many people because they influence how we perceive Bitcoin's ethos: decentralization, trustlessness, and financial sovereignty. 

Additionally, if Satoshi were to reappear, the impact on Bitcoin’s price, trust, and governance could be seismic. 

Possible Candidates 

Here are the most well-known suggestions.   

Dorian Nakamoto

One of the first attempts to find Satoshi was made in 2014, when journalist Leah McGrath Goodman named Dorian Nakamoto as a possible candidate. The retired physicist and engineer living in California was seen as the potential creator of Bitcoin because of his last name, background in engineering and his statement about "no longer being involved" in the project, which he later said was a misunderstanding. 

Dorian has consistently denied any connection to Bitcoin, and his modest lifestyle doesn’t coincide with the substantial assets held on wallets widely associated with Satoshi. While intriguing, this theory is largely dismissed as a coincidence. 

It is important to mention that the report featured the photo of Nakamoto’s house, and many crypto enthusiasts didn’t appreciate this violation of privacy. They even sent crypto to him to show their sympathy.  

Craig Wright

Computer scientist and businessman from Australia Craig Wright is the only person on this list who doesn’t deny being Satoshi. Quite the opposite: he has been trying to convince everyone that he’s the Bitcoin's creator since 2015. However, his claims have been dismissed many times over, as he lacks cryptographic proof. A court even ruled against him in a case related to Bitcoin's intellectual property, resulting in a suspended prison sentence. 

Critics see Wright's actions as attempts to improve his status in the crypto space, citing his personality and legal disputes don’t match with Satoshi's humility perceived in his writings and work.

Peter Todd 

Peter Todd, a well-known cryptographer and developer, is also often speculated about in this regard. The arguments in favor include his expertise in the subject and working with crypto in its early stages. An HBO documentary, "Money Electric: The Bitcoin Mystery," even explored this possibility, though without conclusive evidence. Todd denies these claims, emphasizing Bitcoin's complex nature, which gives away a collective effort.

Nick Szabo

Nick Szabo, a computer scientist and cryptographer known for developing Bit Gold, which came before Bitcoin, is often considered a potential Satoshi candidate. His works on Bitcoin-related topics and linguistic similarities to Satoshi's writing fuel this speculation. 

However, Szabo denies the claim, and concrete evidence linking him to Bitcoin's creation is lacking.

Len Sassaman

Cryptographer and privacy advocate Len Sassaman, is another person frequently suggested as a candidate for being the creator of BTC. His work aligns with Bitcoin's principles. Some theorize his 2011 death explains Satoshi's disappearance from public communication that year. However, this theory, like others, lacks substantial evidence.

A Group of Developers

Many believe that Satoshi Nakamoto represents a group of developers, cryptographers, and other professionals. They argue Bitcoin's creation required diverse expertise, suggesting a collaborative effort. 

This theory also explains the meticulous and professional tone of Satoshi’s communications, as they could have been written by several people.

2010 Megawhale

Recently, in November 2024, the Bitcoin research firm BTCparser suggested a new point of view. According to them, Satoshi Nakamoto didn’t disappear completely but has been strategically selling Bitcoin since 2019. The theory focuses on a large group of 2010 wallets. The researchers suggest that those belong to Satoshi. 

BTCparser theorises that Satoshi avoided using the original 2009 wallets to maintain anonymity, starting sales in 2019 with $5 million and escalating to a $176 million transaction in November 2024. The increasing sales were likely caused by Bitcoin's rising value, which might have been a calculated strategy all along. 

However, this remains a theory, as the authors themselves admit. 

The Government Agency Theory

Another theory proposes Bitcoin was created by a government agency like the NSA or CIA, possibly for economic experiments or cryptographic testing. Proponents cite Bitcoin's use of the NSA-developed SHA-256 hash function. However, critics argue Bitcoin's decentralized, anti-authoritarian nature goes against what a government agency would probably want to achieve.

Conclusion

Even though there are many more theories, some of which even include Elon Musk, the opinion that Satoshi should stay anonymous is rather popular as well. Some see it as an essential factor for decentralized development, free from individual or entity influence. Revealing Satoshi's identity could disrupt the ecosystem, potentially hurting trust and inviting unwanted scrutiny. 

And so, the mystery of the Bitcoin creator continues. Despite numerous theories abound, for better or worse, definitive proof is yet to be found. Perhaps the best way to honor Satoshi's vision is to focus on revolutionary technology, not the creator's identity. Anonymity ensures Bitcoin belongs to no one and everyone, contributing to its success.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.