Why I Don’t Care Who Satoshi Is. Even If He’s the IMF.
I was asked recently if the anonymity of Satoshi Nakamoto doesn’t bother me at these high price levels for Bitcoin.
Here is my response.
Not really. I don’t know who invented the wheel or discovered fire either. But I’m ok using them. On the flipside, I know for a certainty that the internet was created by the US Department of Defense. Nevertheless, I use it anyway.
I’ve heard the suggestion that Satoshi is really the IMF and Bitcoin is their secret plan to take over all the money and make a one world currency (complete with an evil muahahahaha). I’ll go ahead and concede the point and assume Bitcoin actually was created by the IMF (or you can insert Rothschilds, Rockefellers, whoever). So now what?
Well, they kinda screwed up in my opinion. If you want to have a one world currency (to rule them all, hobbits!), you couldn’t do much better than the US Dollar, backed as it is with the most deadly and vast military force the planet has ever seen in history. Or you could simply establish Special Drawing Rights (SDRs) and have them operate as a superstructure over the various world currencies, allowing for a central exchange point for every individual currency. And actually, the dollar basically does that already too. And the Dollar/Federal Reserve essentially IS the IMF. So they already have what they need with the current international monetary system.
But when you create software that is open sourced, freely available and reviewable, extendable and forkable… well, now you’ve just blown up your plans to have a one world currency. AND you’ve got all sorts of people suddenly interested in this whole concept of how money works… what’s a currency? what do banks do? fractional reserve, etc. Like Henry Ford said: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” Well, nothing makes you think more about how our banking and monetary system works than an open, private, stateless, bankless money system. So the IMF, BIS, Central Banks and various Big Banks who all benefit from the ignorance of the populace would be shooting themselves in the foot (if not the head) by creating something like Bitcoin.
In the same way that the internet, in the hands of the market became the greatest tool for exposing misdeeds in the Department of Defense (and CIA/NSA/FBI/etc) and undermining it, an IMF created Bitcoin will be the greatest tool to expose and undermine the IMF and the international monetary system. So ultimately I don’t care if some secretive cabal is behind Bitcoin, because, if they are, and want to take over the world of money… they are doing it wrong.
Ok, so let’s say Satoshi is just some private individual who could crash the market at anytime. The fact that he is believed to hold 1 Million BTC in very well-known (or suspected) addresses means that he would have to destroy his own wealth in order to hurt everyone else. Just moving those coins at this point could set off a panic among people with weak hands, crashing his own value by several orders of magnitude. So Satoshi is somewhat a prisoner of his own success. He can’t liquidate his holdings without risking doing serious damage to the whole ecosystem. Seems like a pretty good check and balance. Once we move out of the s-curve of growth, it will be different. Satoshi can reveal himself or at least resurface pseudonymously and let people know that he’s going to buy an island or a planet or something with his holdings (so don’t freak out!). For now though, his large holdings act like an insurance policy against his doing harm to the system.
Finally, the price right now is meaningless. A lot of the tracking sites like Bitcoinity have moved to the mBTC (.001 BTC) as the unit of account. And that exchanges for about $1.10. Eventually, I suspect the unit of account will be the satoshi (.00000001) or what I call the hectatoshi (.000001). Up until now, everybody has been thinking of the Bitcoin like it’s $1 or even 1 ounce of gold. Turns out 1 BTC isn’t a $1 bill, it’s a $1,000 bill. It’s not an ounce, it’s a 400 ounce bar. Those sell right now for about a half million dollars. But people don’t think of $500,000 as a high “price of gold”. So I don’t even think we are at a high price right now. Historically, this will be viewed as a ridiculously low price: “Wow, remember when you could get 1 mBTC for $1?” Just like people now are saying “Wow! 3 years ago you could get 1 BTC for $1!”
So this price doesn’t make me any more or less worried about Satoshi’s identity. And his anonymity doesn’t bother me. And unless you really just have nothing else in the world to worry about, it shouldn’t bother you.