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Can One-person Control Bitcoin?

Bitcoin is considered one of the most volatile assets that are on the market right now, with prices changing by the hour bitcoin is a machine that can make you a lot of money very easily, or it may cost you a lot more. Bitcoin’s price like any other asset or stock is tied to the customer demand, it runs on the supply and demand principle, with a limited number of bitcoins available the high demand of bitcoin can exponentially increase the price in minutes. Due to this volatility of bitcoin, there is a whiff of uncertainty as to whether Satoshi Nakamoto the mysterious creator of bitcoin manipulating the value of bitcoin.

It is believed that Satoshi Nakamoto took 1 million bitcoins for him during the early days of the crypto, and is believed that he still holds them to date. That puts his net worth around 8 billion dollars making him one of the richest people on the planet. With the total number of bitcoins being around 18 million Satoshi’s shares at 5.5% which is a considerable share considering that the whole market is worth 144 billion dollars. This huge number of bitcoins give Satoshi a lot of wealth, but does it give him the power to control the price of Bitcoin?

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There’s no easy answer to the question, however, a case can be made that given ideal conditions he can do that. For example, in the 1980s, two American billionaires tried to monopolize the silver market by controlling the majority of the supply, they failed due to interference from the US government but Satoshi isn’t bound by the US government, is he? With a huge stake, he can exert similar pressure on the bitcoin market. In 2014, merely 26,000 bitcoins were unloaded onto the market which sent the price down by 10%, imagine if they were a million. Jeremy Glaros owner of CoinArch, said about Satoshi’s control:

If Satoshi were to dump one million bitcoins, it is not only the price effect we have to worry about but what I’ll call the ‘faith’ effect: after all, if the creator appears to lose confidence in bitcoin then what are the rest of us to believe?

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This would be nothing short of a nuclear scenario however, other cases can also be made. Bitcoin drives its price not from demand but rather from customer belief, and as long as bitcoin has the customer belief in hand, it will hold its value. Winklevoss twins and other hotshot billionaire’s also own a considerable amount of bitcoin, enough to disrupt the market. Thus, it is safe to assume that even though these people have the potential to disrupt the price, they can’t because the price will bounce back after a few days because consumer’s belief in bitcoin is strong.

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Shahzaib Zafar

Electrical Engineer, Crypto enthusiast, a tech nerd and a developer with a keen interest in blockchain, writes daily articles about bitcoin and cryptocurrencies for blockpublisher.

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