Who invented Bitcoin?
On October 31, 2008, an individual or group under the pseudonym Satoshi Nakamoto shared a whitepaper discussing a peer-to-peer electronic cash system with a cypherpunk email list. Bitcoin emerged shortly after and has since ignited a worldwide cultural movement and a multi-trillion dollar market.
In November 2011, a writer produced an article on this emerging phenomenon, marking one of the earliest instances of mainstream media focusing on cryptocurrency. At that time, the true identity of Nakamoto remained a mystery, and despite extensive investigations, the author was unable to uncover it either.
Interestingly, the same author who penned “The Billionaire’s Vinegar: The Mystery of the World’s Most Expensive Bottle of Wine” in 2009 found himself drawn back into the Bitcoin saga in 2022 after receiving numerous emails from a former Tesla employee convinced that Elon Musk was Nakamoto. While the author steers clear of that particular theory, he presents his own insights in “The Mysterious Mr. Nakamoto,” a 342-page exploration scheduled for release on March 18.
Ultimately, he concludes that he once again failed to solve the Nakamoto mystery. However, his deep dive provides a well-rounded examination of Bitcoin’s history, particularly highlighting the cypherpunks whose philosophies played a role in the cryptocurrency’s inception. “The Mysterious Mr. Nakamoto” is an excellent read for both seasoned crypto enthusiasts and newcomers eager to explore the roots of Bitcoin; it’s similarly valuable as Laura Shin’s “The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze,” which centers on Vitalik Buterin and the formative years of Ethereum.
The author considers a wide array of possible Nakamoto candidates throughout his investigation, with favorites including Hal Finney, who received the first bitcoin transaction; Nick Szabo, who conceptualized a digital currency called “bit gold” in the 1990s; Len Sassaman, a key developer of the Mixmaster remailer; the lesser-known cypherpunk James A. Donald; and long-time Bitcoin critic Ben Laurie.
One highlight of “The Mysterious Mr. Nakamoto” is witnessing the author’s mental unraveling as he hops between these suspects. Each time he seems to pinpoint a singular figure, new information arrives, challenging his conclusions. He deserves recognition for his multi-dimensional approach, utilizing stylometry to analyze Nakamoto’s emails and code, thoroughly investigating circumstantial evidence, interviewing nearly all potential suspects, and even learning coding to better understand cypherpunk dialogue.
Overarching the investigation is the discussion surrounding whether the identity of Satoshi Nakamoto truly matters. Recently, this question has gained traction, fueled by HBO’s “Money Electric: The Bitcoin Mystery” documentary and statements from industry figures suggesting that Twitter co-founder Jack Dorsey may be the creator of Bitcoin.
The author indicates that Nakamoto’s identity is one of the major secrets of the 21st century. With financial institutions and government entities increasingly embracing the crypto landscape, there might be a sense that identifying Bitcoin’s creator could help legitimize the digital asset’s place in the global financial framework.
According to the author, uncovering Nakamoto’s identity could reshape public perception of Bitcoin. Cryptocurrency advocates prefer to view Satoshi as a visionary who gifted Bitcoin to humanity before vanishing for altruistic reasons. But what if Nakamoto were a criminal, like a notorious cartel leader, unable to access his private keys from prison? Would major firms still rush to recommend Bitcoin to their clients?
In the end, the author leans toward the idea that Hal Finney likely played a part in the development of Bitcoin, but he emphasizes that it was a collaborative effort, with verification of any theory remaining nearly impossible without direct proof from Nakamoto. Nonetheless, “The Mysterious Mr. Nakamoto” is written with great intelligence, and the lack of a definitive resolution does not come off as anti-climactic. Ultimately, the narrative is about the pursuit of knowledge.
“What could we actually glean from an account of Nakamoto’s life?” the author contemplates at one point after a friend suggests that the story would benefit from remaining unanswered. “That he was an ordinary professor who had a stroke of luck? No, what is most intriguing about Nakamoto is his absence. He was defined by what we didn’t know about him.”