Bitcoin stands as a pioneering payment network and digital currency. Operating through peer-to-peer technology, it functions without the need for a central authority or bank. As open-source and decentralized software, no single entity holds complete ownership or control over Bitcoin.
Here are some intriguing facts about Bitcoin that provide deeper insight into its unique presence and role in the global landscape.
The Enigmatic Creator: Satoshi Nakamoto
The founder of Bitcoin used the pseudonym Satoshi Nakamoto but never revealed a photo or clarified whether this was an individual or a group.
During Bitcoin's early days, Satoshi was highly active in community discussions. However, on December 13, 2010, Satoshi made a final post on the BitcoinTalk forum. The last known email from Satoshi was sent on April 23, 2011. After that, Satoshi vanished from public view entirely.
Who is Satoshi Nakamoto? Satoshi claimed to be a 37-year-old man living in Japan, but substantial evidence suggests this may not be true:
- Forum posts by Satoshi were exclusively in English, using British spellings like “colour” and “maths”, and phrases like “bloody hard”.
- The genesis block included a headline from The Times of London.
- An analysis of Satoshi’s posting times showed no activity between 2 PM and 8 PM Japan time, which coincides with typical sleeping hours in the UK.
Many speculate that Satoshi, or at least one key member of the team, likely resided in the UK or a Commonwealth nation.
Another theory suggests “Satoshi Nakamoto” is an acronym derived from four major tech companies:
- Samsung
- Toshiba
- Nakamichi
- Motorola
This has not been confirmed by any of the companies, so the true identity of Satoshi Nakamoto remains one of cryptocurrency's greatest mysteries.
The FBI Was Once a Major Bitcoin Holder
In September 2013, the U.S. FBI shut down the online drug marketplace “Silk Road” and confiscated Bitcoin acquired illegally by its founder. This seizure gave the FBI control of over 144,000 BTC, making it one of the largest institutional holders at the time. Starting in early 2023, the U.S. government began selling portions of its Bitcoin holdings.
Current major Bitcoin holders include:
- Satoshi Nakamoto: believed to hold over 1 million BTC.
- The Binance exchange: holds over 240,000 BTC.
- The Bitfinex exchange: holds over 170,000 BTC.
Bitcoin Has Been to Space
In 2016, the Genesis Mining team launched a weather balloon carrying a 3D-printed model of a Bitcoin and a Bitcoin wallet. When the balloon reached near-space altitudes of over 20 kilometers, a Bitcoin transaction was successfully sent to the wallet in the sky.
Bitcoin Was Once Sold on Taobao
Prior to 2014, it was possible to buy Bitcoin directly on the popular e-commerce platform Taobao. However, as Taobao tightened its regulations and dedicated cryptocurrency exchanges grew, this method of purchase gradually faded away.
Lost Bitcoin Forever
A manager from the investment advisory firm Cane Island Alternative Advisors revealed that at least 6 million Bitcoin are presumed lost or forgotten forever. This represents roughly 28.5% of Bitcoin's total supply.
From an economic perspective, a reduction in the available supply can contribute to upward pressure on the price of the remaining Bitcoin.
The Last Bitcoin
Bitcoin's block reward is designed to halve approximately every four years. To date, over 19 million BTC have been mined. Experts project the final Bitcoin will be mined in the year 2140.
The Most Valuable Trash
In 2013, a 36-year-old engineer named James Howell accidentally threw away a hard drive containing the private keys to a wallet holding 8,000 Bitcoin. At today's valuation, that hardware would be worth hundreds of millions of dollars.
The drive was dumped in a landfill in Newport, Wales. For over a decade, Howell has campaigned to excavate the landfill to recover his lost drive, but local authorities have consistently denied his requests, citing environmental concerns.
In 2022, Howell partnered with venture capitalists Hanspeter Jaberg and Karl Wendeborn, assembling a team of experts and robotic dogs for a proposed recovery mission with an estimated cost of $11 million. If successful, the investors would receive $50 million worth of Bitcoin. Howell plans to keep 30% of the remainder, give another 30% to the recovery team, and distribute $60 to every resident of Newport.
The Largest Bitcoin Transaction
The largest Bitcoin transaction on record occurred on April 10, 2020, moving 161,500 BTC valued at over $1.1 billion at the time. It was later confirmed that this transfer involved the Bitfinex exchange consolidating funds between its 👉 cold and hot wallet storage solutions.
Remarkably, the transaction fee for moving over a billion dollars worth of value was just 0.00010019 BTC (approximately $0.68 at the time). This highlights a significant advantage of cryptocurrencies, as a traditional international bank transfer of equivalent value would incur substantially higher fees and take much longer to settle.
Frequently Asked Questions
What is Bitcoin in simple terms?
Bitcoin is a digital currency that allows for peer-to-peer transactions without the need for a central bank or intermediary. It operates on a decentralized network called blockchain.
How can someone lose their Bitcoin?
Bitcoin can be lost if access to the private keys—the cryptographic passwords that control the funds—is lost. This can happen if the storage device (like a hard drive) is damaged, thrown away, or if the keys are simply forgotten.
Why is the identity of Satoshi Nakamoto important?
While the functionality of Bitcoin doesn't rely on its creator's identity, knowing who Satoshi is remains a topic of immense curiosity. It could have implications for the story and philosophy behind the asset, and Satoshi's vast holdings could theoretically impact the market if ever moved.
What does 'Bitcoin halving' mean?
Bitcoin halving is a pre-programmed event that cuts the reward for mining new blocks in half. This event occurs approximately every four years and is designed to control inflation and gradually introduce new coins until the maximum supply of 21 million is reached.
Is it true that lost Bitcoin make the remaining ones more valuable?
Yes, in basic economic terms. If a portion of the total supply is permanently removed from circulation (lost), and demand remains constant or increases, the scarcity of the remaining coins can positively influence their price.
How secure is a Bitcoin transaction?
Bitcoin transactions are highly secure due to the cryptographic principles and decentralized consensus mechanism of the blockchain. Once confirmed, transactions are irreversible and extremely difficult to alter.