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Bitcoin’s Mysterious Number

Satoshi Nakamoto set the limited supply of Bitcoin at 21 million on Day 1. What was his reason?

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Bitcoin’s Supply Limit

First things first, what is Bitcoin? Bitcoin is widely regarded as a deflationary currency. Its entire supply is limited to 21 million coins and cannot be changed. And perhaps only Satoshi knows why he specifically chose this benchmark.

Interestingly, some reports could help us better grasp this subject. For instance, the total number of satoshis in circulation is an IEEE floating-point value (21M BTC x 100,000,000).

Besides, 21M simplifies computing; 21 is also a triangular number, so it is very appealing. For example, by stacking six blocks, then five blocks on top of them, then four blocks on top, and so on, you may make an equilateral triangle with a total of 21 blocks.

The 21M benchmark also serves additional purposes. The enigmatic Bitcoin founder, Satoshi, describes it as a “tough option because once the network is up and running, it’s locked in, and we’re stuck with it” in a piece of preserved information.

Suppose BTC, which values are represented as 64-bit integers with eight decimal places, is used for global trade. In that case, there will only be 21 million coins available. After all, Satoshi contemplated the possibility of Bitcoin becoming a global currency.

That said, the “Why 21M?” nagging issue remains unanswered, and maybe only Satoshi knows why. But who is Satoshi?

Who Is Satoshi Nakamoto?

Satoshi Nakamoto is Bitcoin’s protocol and blockchain database inventor.

The individual(s) who wrote the Bitcoin whitepaper used Satoshi Nakamoto as an alias. From August 2008 to April 2011, this mysterious nickname was used in email and forum correspondence globally.

Little did Satoshi know his creation would be so widespread that online platforms such as Binance, Immediate Edge, and eToro continue to emerge as we speak.

History

On October 31, 2008, Satoshi made his first public appearance when the Bitcoin whitepaper was distributed to numerous mailing groups. Note that Satoshi began writing the original Bitcoin code in 2007 and released Bitcoin on Sourceforge on January 9, 2009. Satoshi produced the Genesis Block with the words “The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks,” referring to the front page of The Times and Satoshi’s unhappiness with Fractional Reserve banking.

Satoshi’s addresses acquired around one million BTC from Bitcoin mining in the early days. In April 2011, however, Nakamoto issued his last documented communication to the world, stating: “I’ve moved on to other things. It’s in good hands with Gavin and everyone.”

Satoshi Nakamoto’s Possible Identity

Up till now, there has been no credible verification of Satoshi’s true identity. The following people have all been suspected of being Satoshi Nakamoto at one point or another.

Dorian Nakamoto

According to a high-profile piece in Newsweek, Dorian Nakamoto, a Japanese American whose birth name was Satoshi Nakamoto, was allegedly the developer of Bitcoin. Note that Dorian worked as a physicist on classified defence projects at Cal Poly Pomona and also at Citibank.

It was later revealed that he had no connection to Bitcoin. Satoshi Nakamoto’s account on the P2P Foundation website was hacked within twelve hours of the article’s publication, and Satoshi wrote a message claiming he was not Dorian Nakamoto.

Hal Finney

Interestingly, Dorian Nakamoto resided just a few blocks away from computer scientist Hal Finney. Based on this, Hal was the most likely candidate for Satoshi Nakamoto. However, there is one event that disproves Hal’s claim to be Satoshi.

Long story short, Hal was the one to receive the first Bitcoin transaction. Tracing the IP addresses indicates Hal’s IP address and a DSL connection from Van Nuys, California.

Nick Szabo

Using some writing analysis, a blogger linked computer specialist Szabo Nick to the Bitcoin whitepaper. Nick is a proponent of decentralised currencies and has written a paper on bit gold.

This is where things get messy regarding Szabo’s claim to be Satoshi. According to correspondence between Hal and Satoshi, Satoshi was unaware of Bit Gold when Bitcoin was established. The mention of Bit Gold was introduced to the Bitcoin.org website between January and March 2009.

Craig Wright

Last but not least, this is the most outrageous case surrounding Satoshi's identity. Craig and David Kleiman had devised a complex strategy of internet postings and email correspondences to give the impression that they were Satoshi Nakamoto. Craig Wright’s allegations and business transactions were unpacked in a lengthy story authored by Sam Biddle and Andy Cush for Gizmodo on December 8, 2015. This led to many more questions unanswered.

In many interviews with the BBC, The Economist, and GQ in May of 2016, Craig Wright claimed to be Satoshi, saying he had technical proof. Note that Gavin Andresen was one of the people who acknowledged that Craig Wright was Satoshi, which he later regretted. Despite such claims, the most compelling evidence that Wright is Satoshi has never been provided: none of Satoshi’s original wallets containing bitcoins has ever been moved in any way.

Conclusion

There are many mysteries around Bitcoin’s limited supply of 21 M and its creator Satoshi Nakamoto. That said, many people openly embrace the world of Bitcoin trading.

As Satoshi put it, “I hope it’s obvious it was only the centrally controlled nature of those systems that doomed them. I think this is the first time we’re trying a decentralised, non-trust-based system.”