Skip to content

Bitcoin price unaffected by the Satoshi-era 50 BTC transaction

May 21, 2020

Someone whose identity cannot be revealed has sent 50 Bitcoin mined in February 2009 to two different wallets. Given that the first Bitcoin block (BTC) was mined in January of the same year, the person is reduced to Satoshi Nakamoto or other miners who were present at the time.

50 BTC mined in February 2009. Source: Block chair

Bitcoin price unaffected by the Satoshi-era 50 BTC transaction
Bitcoin price unaffected by the Satoshi-era 50 BTC transaction

It is highly unlikely that Satoshi postponed 50 BTC for various reasons. The most obvious evidence of this is that Satoshi is Patoshi pattern. The first blocks that the Bitcoin creator mined can be identified with a data element called “nonce”. The CEO of Casa Jameson Lopp told Cointelegraph in an interview:

“These coins do not seem to match Patoshi’s pattern. The block from which they were mined had an additional 477 U.A block that was being mined using the Patoshi pattern at that time would likely have an additional 2,367.“”

Nic Carter, co-founder of Coinmetrics, said: “It is basically impossible to prove that Satoshi did not mine these coins, but the best research that we have suggests that Satoshi mined a certain set of blocks, none of which are.“”

Even in 2009, Lopp stated that there were several other miners besides the dominant miner, who is believed to be Satoshi. So it could be an unknown miner who moved 50 BTC, as Lopp explained:

“”Contrary to popular belief, there were several miners in these early Bitcoin months. It’s just that the dominant miner – many of whom assume he is Satoshi – had a lot of hash rates“”

Bitcoin’s price initially dropped from around $ 9,900 to $ 9,300 when the market first responded to the transaction. However, as more information about the complexity of the transaction was discovered, the likelihood that the sender was Satoshi decreased. The Bitcoin price soon recovered.

Since it was likely that one of the first miners experimenting with BTC in 2009 was the one who sent the 50 BTC and not Satoshi, the market seems to believe that the miner had enough attractive reasons to send BTC out of an old wallet what associated problems with privacy as advertised.

The low nonce number reduces the likelihood that the sender is Satoshi. Source: Jimmy Song

Lost hard drive recovery, data protection and asset diversification

If there were a limited number of services and platforms that allowed users to guard Bitcoin unguarded, Many users and miners have stored their BTC on hard drives or external storage.

With some miners advancing and mining thousands of blocks, others only stopped at severalIt is quite possible that a former enthusiast found a hard drive from 2009 and decided to postpone or sell the BTC. In a conversation with Cointelegraph, Lopp remarked:

“There could be a million possible reasons. Maybe someone found a lost hard drive. Maybe someone had to do a super private transaction, so they used freshly mined coins. Maybe it’s just someone who diversifies their assets.”

As a result, the miner may have found an old hard drive with a BTC value of around $ 490,000 and, for financial reasons, decided to diversify the assets. According to some experts, the activity of the portfolio, particularly its inputs, suggests that the portfolio has been active for a long time. That suggests that the miner is likely I was planning to send the 50 BTC in the past few months.

On this basis, it is also likely that the miner would like to initiate a private transaction across many entrances and exits in order to safely get to another unidentifiable address. If bitcoins were not sold, the sender would not have to travel long distances to get more privacy. The sender’s additional effort to create a complex transaction is another piece of data indicating that it has been delivered to the market for sale.

But most likely it is not Satoshi

The transaction itself is significant because the early Bitcoin block BTCs are rare. Blocks in the range of 3,000 to 4,000 come almost immediately after the group of blocks that Satoshi was known to have mined in January 2009. Due to the rarity and importance of the transaction, the price of Bitcoin responded when it was first released. Lopp explained:

“It is noteworthy because it is probably the oldest coin ever issued, so it is fascinating that someone has managed to keep it for over a decade, and by older I mean older ones before they were issued. “

Knowing that it is most likely not Satoshi, industry leaders said that some people could go to the extreme to try to unravel the BTC sender’s identity. Adam Back, CEO of Blockstream, said this could lead to unfair manipulation of the early miners out of simple curiosity, which could have a negative impact on any BTC miner. Back tweeted::

“People have to relax. If Satoshi were to sell coins, he would surely sell the last mined first and therefore the most anonymous.. Also, this investigation of the Patoshi is pretty revealing, it probably has fewer coins than people think, and the next thing you’ll do is publicly mislead the first random miners. “

Nevertheless, there is always the possibility that it was Satoshi. As the Bitcoin developer Jimmy Song explained, various technical data suggest that the block from which the 50 BTC came was probably not from Satoshi. Song wrote:

“It is of course possible that Satoshi ran Bitcoin on multiple computers and that it came from another computer in the blue threads of blocks 3653 and 3655, but dGiven the clear blue pattern of all coins that have not been issued, it is likely that the same person will not have the millions or more bitcoins“”

However, with almost all data points suggesting that the 50 BTC has no connection to Satoshi, the market recovered and the price of BTC rose from around $ 9,300 to $ 9,550. A Bitcoin investor named Whale Panda tweeted: “This has been confirmed by several people as not a Satoshi address … but if you could please continue to sell your panic so I can buy more under it, I would be grateful“”

The response of the Bitcoin market to the 50 BTC transaction. Source: trade view

The drop in Bitcoin prices after the transaction was discovered could have been an effort by the whales Use a narrative to achieve a short-term decline in liquidity areas that are at a medium level of $ 8,000 and a low level of $ 9,000.

The high activity in the portfolio, which originally contained 50 BTC from 2009, and the weak reaction of the Bitcoin price therefore indicate that the majority of the market He doesn’t seem to think it was Satoshi who sent the 50 BTC.