Did Satoshi make a move with a bitcoin transfer?

Analysts started chattering last week when an unexpected event occurred in cryptocurrency — 40 Bitcoins from a wallet created eleven years ago in the first month of Bitcoin’s existence, and quiet ever since, were transferred to another wallet. When the coins entered the first wallet, their combined value was a tiny fraction of a cent. When they were transferred last week they were worth over $391,000.

What caused the stir was the supposition that since this wallet was so old and completely inactive, this may have been a move by Satoshi Nakamoto himself. Or herself. Or themselves.

Let’s take this moment to bring any newcomers to blockchain technology and cryptocurrency up to date.

Into the Way Back Machine

After the last big financial crisis in 2008, some brilliant minds looked with disgust at how our money system was being managed. They saw something that was subject to “trusted” banking authorities who held, invested, and loaned our funds in sometimes suspect and dangerous ways, as well as subject to central authorities that could manipulate the money supply for political reasons, like firing up the printing presses to print more, as some have argued the government has done to create financial stimulus today. Those brilliant minds theorized a new system that was peer to peer. I want X. It’ll cost you Y. Sounds good to me, here is your “money.” An instant exchange of value with no banks, no middlemen, no borders, and total transparency to avoid fraud, mistakes, delays, or theft. Inflation would be controlled because the amount of a currency ever available would be strictly limited by the system’s design, as well as by regulating the reward given to computer nerds who helped build the system and would help maintain it through its existence.

Anyone who wonders how you can just make up a currency and pretend it’s real doesn’t understand that is essentially what the mighty U.S. Dollar is — something theoretical we have agreed to use, and are told by our government is worth the number printed on the paper. But replace the government with a computer that can’t be fiddled with and you’ve got yourself a system. The White Paper detailing this new system and all the rules about how it would work was credited to someone named Satoshi Nakamoto, who doesn’t exist and whose real identity (or identities) is still anonymous, eleven years later.

In that time a lot of new developments have taken place. Other digital currencies have been released and have built value for their adherents, in some instances because of manipulation by traders. Many more have been unleashed and were proven to be complete swindles.

In recent years, the technology that is the backbone of Bitcoin — blockchain technology — is now viewed as a positive and revolutionary method of recording, archiving, and retrieving information that is incredibly hard to falsify or penetrate in unauthorized ways, and that could revolutionize all kinds of transactions and delivery of needs that rely on data. Municipalities could use it to track and more efficiently provide all kinds of services. Relief agencies could bypass multiple relay stations and hurdles in delivering vital life-saving aid. Contracts can be written that immediately fund the supplier of an agreed-upon demand, without the delays that result as documents and payments change hands. Medical records can remain the provenance of the patient, released as he or she sees fit and without fear of them falling under prying eyes. Scarce medical equipment might never need to be sought again once those devices are digitally tagged, insuring their location is known to all.

An Industry that Lacks Direction

So what caused all the interest in that early wallet and the movement of funds? For an industry searching for direction, any act by someone from the earliest days — whether it’s by Satoshi or not — gets evaluated and examined, and its meaning dissected. A marker maybe? A signpost, perhaps, from someone smarter than I am? It distracts from the confusion around the direction of digital currencies. Without question, Bitcoin has NOT become a ubiquitous currency. It is not generally used to buy things, and for a number of reasons it is actually quite hard to do it. Meanwhile, because of its limited availability, like anything in short supply, its value can ratchet up as demand to own it kicks in. Investors aren’t likely to spend what some say could go to six figures or more per Bitcoin. Of course, those rosy predictions could be self-interested prods by whales with fat Bitcoin wallets, hoping to coax others to buy.

Which means the enthusiasts and investors holding the coin may actually be holding back the goals of Bitcoin’s inventors. Worth reflecting on as we wonder who moved the money and why.

Another milestone — this weekend marked the tenth anniversary of Bitcoin pizza day, when 10,000 virtually worthless Bitcoin were used to buy two pies from a local Papa John’s by a programmer in Florida. He proved that the theoretical coins could be used as currency, and claims to have no regrets. We should all applaud his efforts, especially since that hoard would be worth $91 million today.

Visit Aeryus at: https://aeryus.com
Follow us on all our social media channels to keep up to date on all
things Aeryus!

Join our community on Telegram: https://t.me/Aeryus1
Telegram news channel. https://t.me/aeryusone
Looking for token info? https://aeryus.com/token
Follow us on:
Twitter: https://twitter.com/aeryus_one
Facebook: https://www.facebook.com/AeryusOne
LinkedIn: https://www.linkedin.com/company/aeryus/
Aeryus is currently listed on IDEX: https://idex.market/eth/aer