BITCOIN’S BIRTH OUTSIDE THE BOX AND THE MYSTERIOUS CONSPIRACY THEORIES THAT FOLLOW IT

THE creator of BITCOIN, is known only by the pseudonym Satoshi Nakamoto.  Who is Satoshi Nakamoto?  Well to understand that question, let’s start with the Japanese word “Satoshi” = “wise”, or intelligent, and “Nakamoto” = “center point”, or central.    Then mix that in with despite years of leaving posts on Bitcointalk.org, Satoshi never left a clue about his true identity.

 

Mix in that with we know that Gavin Andresen, who is acknowledged as “the public face of Bitcoin”, claims years of correspondence with Satoshi but never met him or spoke with him on the phone.

 

Then add a dash of historical fact in that the NSA wrote a paper in 1996 that some say lays the groundwork for Bitcoin.  Did your hair raise up on that one?  Well, please do remember that this is one of the functions of the NSA. The NSA is charged with exploring cryptography and its applications. There are certainly similar elements between the NSA outline and Bitcoin. But the paper is still relatively broad.

 

And the paper was never kept secret, it was published. We could even surmise that the real Satoshi Nakamoto could have read it and got some ideas. He, or whatever organization the name represents, would have done their research to review published material about cryptocurrencies.

 

Now stir completely and add in that the paper was published on networking P2P Foundation and said the elusive Nakamoto lived in Japan and was born in 1975.  Yet when the world’s media thought they had found their Satoshi Nakamoto in 2014 – they found out he was just a regular guy who was a computer engineer living in Temple City in Los Angeles County.  But wait, there’s more!  There is a Japanese-American man, named Dorian Satoshi Nakamoto.  Alas, he firmly denies he was or is the shadowy force behind the infamous cryptocurrency – so, the plot continued to thicken.

 

One of the best known ‘Other’ Nakamoto-suspects is an Australian computer scientist and businessman named Craig Wright.   But unlike the other leading contenders, Wright claims he is Nakamoto and in 2016 provided technical “proof” to the BBC, The Economist and GQ. This consisted of a demonstration of the verification process used in the very first Bitcoin transaction. But he was discounted when The Economistclaimed, “such demonstrations can be stage-managed” and reported that Wright refused to make the proof public and to provide other assurances. Last, we bake at 350 degrees with the knowledge that there is currently no publicly available cryptographic proof that anyone is Bitcoin’s creator. What???  How could that be?    We may never know the answer to this question for in the creation of the Bitcoin, maybe no one is who they pretend to be.

 

MYSTERIOUS BIRTH

 

Which brings us to the fully baked conspiracy theories about Bitcoin.

 

The first conspiracy theory states that the NSA created Bitcoin and it became an experiment that got away from them.  It is a fact well-known that the National Security Agency created part of the code for Bitcoin.  But does that prove they were behind the introduction of Bitcoin all along?  That the NSA IS Satoshi Nakamoto (aka “wise” and “center point”)?  When you first hear that; it does make you wonder……

 

However, when one looks more closely, one realizes that the NSA creates a lot of cryptography code and some of the cryptography works and is widely adopted.

 

We know through factual history, the piece of the Bitcoin code created by the NSA is a hash function called SHA-256.  SHA stands for Secure Hashing Algorithm. The hash is the expected outcome. An algorithm can be executed on a piece of data, and the output of that algorithm should match the hash. But no one can figure out what the data was with just the hash. It only works in one direction. And there are enough different combinations that it is virtually impossible for any two pieces of data to create the same hash.

 

But, SHA-256 is not unique to Bitcoin OR NSA. It is used widely by different industries, including in SSL certificates which encrypt small data files.  If someone changes one piece of the file, the hash also changes, and the receiving computer will recognize this by comparing the expected hash with the received hash. This prevents data from being intercepted and changed without detection before reaching its destination.

 

Then we have NSA conspiracy number two.  Some great minds in the world are stating that Bitcoin completes the ONE WORLD CURRENCY CONSPIRACY THEORY.  Exactly how would that work? It goes something like this.  The government invents Bitcoin to get people excited about digital currency. Then they create their own, or partner with a mainstream bank to create digital cash.

 

Next, they initiate a global scale false flag attack, like an Orson Welles alien invasion, or an electromagnetic pulse from North Korea, or even a terrorist attack on the power grid. This chaos tanks the economy and the financial system. They blame Bitcoin for funding the terrorists/bad guy aliens and outlaw it.

 

After that, the government “saves the day” with their own cryptocurrency, and allows everyone to trade in their fiat dollars for the digital token. In this conspiracy theory, the government takes complete control over the population. They can roll out automatic taxation, negative interest rates, and any other kind of control they want.  That is probably a half-baked conspiracy theory at best.

 

OUTSIDE THE BOX MYSTERIOUS BIRTH IS NOW THE WAY FORWARD

 

In the end, even if the NSA or CIA created Bitcoin, so what? Bitcoin isn’t the only cryptocurrency out there and if the NSA or CIA did create Bitcoin, then they inadvertently spurred a competition for the best cryptocurrency.   While we realize Bitcoin is used frequently on the black market due to its relative anonymity, we also want to note there are plenty of places, at least within the U.S., that allow Bitcoin transactions.  Microsoft, Dell, REEDS Jewelers, Expedia, and Overstock.com are just a few places that accept Bitcoin as a legitimate payment. Which leads us to the third conspiracy theory side note aka icing on the cake.  The FBI owns one of the largest Bitcoin wallets.  WHAT?????

 

YUP!  A few years back, the FBI shut down the Silk Road—a major black-market site. As with any black-market site, Bitcoin was used frequently to make purchases.  We came to find out that the FBI inadvertently acquired all the bitcoins circulating around the site and as of October 2017, the FBI owned 1.5 percent of the world’s Bitcoin. That doesn’t sound like much in the grand scheme of things, but when you consider how few people in the world own a substantial amount of Bitcoin—1.5 percent is a huge amount for one entity to own.

 

There is a twist to the end of this story.  Sure, it could all be true. But it could just as easily be reversed.  Perhaps Bitcoin is such a promising tool it will ultimately free people from central banking.  That the government is desperate to discredit it. What better way to convince people to discount or fear something, then state that it was created by the NSA or CIA?

 

The government’s best tool is convincing everyone they are omnipresent. Seeing agents in everything paralyzes people with inaction. In the end, no one should base their financial and monetary decisions on an unproven conspiracy theory.  If you do, it is a flip of the coin.  One really can’t make a definite determination about Bitcoin based on the information available. Therefore, the best course of action is to do what you were going to do anyway. So, who Satoshi Nakamoto is, we don’t need to know.  What we do need is his creation and if this creation was spawned in an NSA computer room doesn’t really matter.  It’s not there now and the future of what it can and will be is still unwritten and that’s the part that is so very exciting!

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