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What Happens to the Price of Bitcoin if Satoshi Spends his Bitcoins?

The creator of bitcoin, Satoshi Nakamoto, introduced the programmed digital cryptocurrency to the world over a decade ago. After releasing bitcoin, the creator banished completely without leaving any trace and still even after 10 years, no one knows who the creator actually was. While some assume him to be from Japan, many others are of the view that there is a team and not a single person behind the pseudonym Satoshi Nakamoto.

There are many theories behind Satoshi Nakamoto who invented bitcoin and guided others while not revealing his identity. Although these theories along with the identity of Satoshi Nakamoto can’t be verified, there’s a fact involving Satoshi Nakamoto often overseen by many. Out of 21 million bitcoins, the creator is said to possess about 1 million bitcoins.

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In 2017 when the crypto market was at its peak and bitcoin achieved its all-time high price, it was estimated that bitcoin possessed by Satoshi had over $19 billion worth. Since 2009, bitcoins owned by Satoshi haven’t moved or aren’t spent by him. At that time, he was estimated to be the world’s 44th richest man.

However, as long as Satoshi has bitcoin in the possession and not the equivalent fiat currency, bitcoin and the rank of 44th richest person bestowed to him aren’t of any use. Although Satoshi hasn’t moved or transacted bitcoin yet, he might be planning to do so in the near future.

As 1 million out of 21 million accounts for a significant percentage of total bitcoins, the price of bitcoin can be impacted by Satoshi. If Satoshi liquidates all of his coins, this will immediately increase the supply of bitcoin times more than its demand. As bitcoin follows the fundamentals of supply and demand, its price can drop sharply if Satoshi converts his share of bitcoin into fiat.

As 85% of bitcoin is already mined and out of them, several million bitcoins are lost forever, Satoshi is capable of changing the equilibrium of the crypto space by liquidating even half of his bitcoins. Again the supply and demand balance of bitcoin could be disrupted by Satoshi alone and bitcoin’s price would fluctuate.

Although Satoshi is empowered to introduce some irregularity in the price of bitcoin, he can’t afford to gain the attention of many by converting his bitcoin into billions of U.S dollars. This means that without getting noticed, it would not be feasible for Satoshi to convert his bitcoins ti fiat so as long as privacy matters the most, Satoshi wouldn’t convert his bitcoin.

READ ALSO: You can’t Carry only Bitcoin Instead of Fiat

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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