Members of the cryptocurrency community noticed activity that they suspected belonged to the founder of Bitcoin, and as a result, the value of the cryptocurrency began to decrease. Cryptocurrency like Bitcoin, allows people to exchange tangible money digitally. The price can fluctuate, and the value of a coin depends on what the exchange rate is at the time. As a result, people can invest in bitcoins and see a profit based on the current exchange rate.
Satoshi Nakamoto is the name commonly used to refer to the founder of the decentralized digital currency, Bitcoin. Typically anonymous, trading occurs at the peer-to-peer level, leading to the suggestion it could make third-party groups, such as banks, obsolete. However, as an effect of the anonymity, the solution has sometimes been used for criminal purposes, including money laundering and ponzi schemes. Despite the anonymity, bitcoin mining exists to prevent anonymous individuals from double-spending the cryptocurrency through the use of blockchain technology where blocks store unique information in a public database.
The Whale Alert Twitter account tracks large crypto transactions and recently Tweeted that someone had transferred 40 bitcoins from a dormant account to an unknown wallet. Someone mined these coins during the first month of Bitcoin’s existence. For reference, the 40 bitcoins were worth around $400,000 USD when transferred, and it is rumored the owner of the bitcoins transferred another 10 coins soon after the initial Tweet. What made this particular transaction all the more interesting is the age of the coins which led some to believe Nakamoto owned them, and that caused the value of Bitcoin to drop.
While blocks are anonymous, the coins involved in this transfer were identified as coming from one of the first accounts. Considering how few people mined bitcoins in the beginning, some inferred that Nakamoto must have been involved, especially as old coins do not often appear. With some confused and spooked at Nakamoto’s rumored appearance, panic set in and the value of the coin went down. The worry was that the value of Bitcoin would plummet if Nakamoto sold large amounts of coins. However, and as pointed out by MarketWatch, there were those who suggested the coins were mined by an unknown person, rather than the mysterious creator. In fact, arguments over the identity of the owner eventually helped to slow down the panic but not before “satoshi” went went viral on Twitter. Especially as there was no way of actually knowing. For example, even though some realized that these blocks did not follow the “Patoshi pattern” – a unique way to identify Nakamoto’s blocks – the anonymous nature of these transaction still meant it was possible the coins belonged to Nakamoto.
The coronavirus pandemic is changing the way the world works. With people struggling with finances and higher levels of unemployment, and considering these coins were mined in 2009, it might be the case the owner simply felt that it was time to move funds. However, if it was Nakamoto, then it is rather strange that the transfer was only a few bitcoins, since many suspect Nakamoto has at least one million of them. While there’s no way to know for sure that Nakamoto has returned, the one thing that is clear is that one of the first people to mine bitcoins briefly made an appearance recently.
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Source: Whale Alert/Twitter