Bitcoin’s Conspiracy Theories

TECHNOTEC
5 min readNov 21, 2018

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The first conspiracy theory in the world appeared simultaneously with the first secret of one person of another, and with more secrets there were more and more sophisticated conspiracy theories. To date, the vast majority of secrets is related to the activities of secret government and non-governmental organizations.

What occupies the minds of those who work there, what are they trying to do at this particular moment? The answers sometimes, suggest such incredible scenarios that they rather seem to be non-science fiction. However, in the modern world there is at least one object that attracts attention no less than the FBI, the NSA or MI-6 do. This, of course, is about the Bitcoin, recently celebrated 10-year anniversary.

One of the main secrets associated with this cryptocurrency is the personality of its creator Satoshi Nakamoto, who for all the years of the Bitcoin triumphal procession on cryptoexchanges had not revealed himself to the world. In this regard, there is already a huge number of versions and assumptions, and over time, no doubt, it will only increase. The most radical authors believe that Satoshi Nakamoto just doesn’t exist as a person, and there is either a secret group of independent developers or a whole department as government organization, using this name.

At some point it seemed that the veil of secrecy from the personality of Satoshi was about to fall. During the year, there was systematic information in the media and blogs that NSA employees, were able to identify Satoshi Nakamoto with a probability of 99.9 percent, using Muscular and PRISM’s total wiretapping system. It cost American taxpayers dozens, if not hundreds of millions dollars, and the NSA itself spent hundreds of hours of work, which they could rather have spent on solving issues that are much more important for American society. So why was it so interesting for the American special agents to find out who Satoshi Nakamoto really is?

In fact, everything is very simple. One fine day, it was suggested in the administration of the American president, that Satoshi Nakamoto, known as Bitcoin’s creator, could be an agent from China or Russia, which might be a very serious danger to the United States. So it is, in fact or not, remained a secret, since the NSA did not consider it necessary to share the results of their work with any of the media.

This, as well as a number of other circumstances, gave rise to the emergence of a new wave of conspiracy theories. At this time, the creation of the Bitcoin network and tacit control over it was attributed to the NSA itself. However, this version quickly crumbled.

Chinese footprint

Much more stable was the assumption that Bitcoin has a close relationship with the Chinese government. There are more than enough reasons to assume a certain affiliation. Just think about it: today, more than half of all computing power of the Bitcoin network is already in the hands of mining pools from the Middle Kingdom. Indisputable leadership in the production of equipment for mining also belongs to China. At the same time, the government of the country, none other than out of a desire to cover up the traces and confuse everyone, imposed a complete ban on ICOs and the activity of crypto-exchanges.

Closed society

Another conspiracy theory tightly links bitcoin with the Bilderberg club. This closed organization never advertise its agenda, does not issue official statements and comments, and at the same time unites hundreds of the most influential politicians, businessmen and economists in the world who regularly meet at events that are available only for close community. This invoice was enough to make the assumption that the Bilderberg club, together with the US Federal Reserve and Mastercard, through its controlled organizations, is trying to establish control over Bitcoin. These thoughts were prompted by conspiracyists to the fact that, at one time, Blockstream received a very active participation in the development of the Bitcoin code base and received over $ 55 million in investments through the division of the French insurance giant AXA Group, whose former general director Henri de Castries has been heading Bilderberg Club since 2012 .

Substitution trick

But perhaps the most incredible, interesting and frightening is a completely fresh conspiracy theory about the preparation of the main global financial regulators of bitcoin replacement with a new cryptocurrency. Why does the Fed need it? Everything is very simple.

Despite all its obvious disadvantages, Bitcoin has a number of indisputable advantages, the main of which are the uncontrollability of world financial regulators and the anonymity of payments. This options users to put up with an unresolved legal status of cryptocurrency, low transaction speed and many others. For the Fed, bitcoin in its current form is a constantly growing threat. The threat to the US dollar and its global dominance. It is proposed to solve the “problem” of Bitcoin by replacing it with a new cryptocurrency, recognized by regulators, having an absolutely clear and understandable legal status, but 100 percent controlled by the Fed. Those who do not particularly deeply delve into the details of what is happening in the crypto-community may well agree to the substitution and switch to a new cryptocurrency for the convenience of its use.

In theory, it sounds good. But how to implement this idea, since Bitcoin has developed an incredibly large network with just huge computing power over the years of its existence. Build a parallel structure with even greater possibilities? Sorry, but it is very long and expensive. It is much easier to try to capture the existing infrastructure. But how?

By and large, there is the only way to do it: replace the main Bitcoin client with an alternative Bitcoin Core, and then prohibiting any changes to the source code. The most likely candidate for this role is BTC1. Why? Firstly, it is at least not connected with China, secondly, it has broad support of the business community.

What will happen next? Recognition by the US Congress, legitimization as a full-fledged means of payment, a frantic rise in value and popularity. Well, after this bait is swallowed up by a sufficient number of fishes, you can go to tightening the screws: enter black lists of addresses, increase the block size (which will make it impossible to deploy full nodes to private users), and then lift the ban on increasing emissions and turn bitcoin to ashes.

Is it possible to implement such a scenario? Theoretically yes. But in practice, the implementation of this plan is possible only with the full connivance of the crypto community, which is likely to believe. However, the future of Bitcoin is still undefined and anything can happen to it in a year, month or day. And if so, then we will never run out of topics for conversation.

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