What Happens to Bitcoin If Satoshi Nakamoto’s Identity Is Really Revealed?

A recent HBO documentary suggests developer Peter Todd could be Satoshi Nakamoto Bitcoin (BTC) It reignited the mystery surrounding its anonymous founder, Satoshi Nakamoto.

According to Analysts, Bitcoin May Not Be Much Affected by Satoshi Nakamoto’s Identity

The revelation of Nakamoto’s identity in Bitcoin, whose estimated wealth is $68 billion, could have had serious consequences in the past. However, experts and market participants say that in today’s environment, uncovering the inventor of Bitcoin no longer has the same importance.

This shift is largely due to the adoption of Bitcoin by financial giants. “As the Bitcoin network is now global and powerful, uncovering Satoshi’s identity is only important for the history books or entertainment value,” Samir Kerbage, Chief Investment Officer of Hashdex, an asset management firm, said in a statement.

Major institutions such as BlackRock, Fidelity, and Franklin Templeton have embraced Bitcoin as a mainstream asset class, fundamentally changing its role in the market. According to Kerbage, Nakamoto’s identity “does not change Bitcoin’s fundamentals or its long-term investment case.”

In the past, analysts have expressed concerns that revealing Satoshi’s identity could cause them to sell significant Bitcoin holdings, potentially destabilizing the market, especially if Nakamoto is still alive. Nakamoto is believed to control 1.1 million Bitcoins worth approximately $68 billion currently locked in dormant wallets.

In fact, Coinbase, one of the largest cryptocurrency exchanges, acknowledges this risk in its quarterly reports. It lists Nakamoto’s name alongside other risks to Bitcoin’s price, such as inflation, monetary policy, and geopolitical events. Coinbase itself holds approximately $60 billion worth of Bitcoin and provides custody services for many US Bitcoin exchange-traded funds (ETFs).

Adam Morgan McCarthy, a research analyst at Kaiko, echoed these concerns. “When there’s an anonymous person behind it, it’s much harder to imagine them making a sale,” he said. “If it turns out to be a real person, that changes the perception that wallets are ‘dormant.’”

But McCarthy points out that Bitcoin ETFs, such as those launched by BlackRock and other firms, are now beginning to rival Nakamoto’s massive holdings. Currently, ETFs hold close to a million Bitcoins worth about $67 billion, a value only slightly less than Satoshi’s total.

*This is not investment advice.