A recent HBO documentary claims to have uncovered the identity of Bitcoin’s creator, alias Satoshi Nakamoto. It’s a bold claim, especially since Peter Todd — the person named by the makers of the documentaries — vehemently denies it.

If you’re thinking about buying Bitcoin (or already own it), you might be wondering what all the fuss is about and whether it even matters. The answer is yes, it does matter. Satoshi may not be involved in Bitcoin today, but the founding figure is believed to own a significant amount of the currency. So much so that selling even a fraction could destabilize the entire market.

Will the real Satoshi Nakamoto please stand up?

Bitcoin was developed over 15 years ago as a way to remove central banks and other intermediaries from financial transactions. The white paper that established the philosophy and technology behind the blockchain was written by Satoshi Nakamoto, who also mined the first block of the Bitcoin ledger.

A few years later, Satoshi disappeared. The last official message from Satoshi on the Bitcoin forum came in 2010. An email from 2011 said the creator had moved on to other things. This was the last heard from Satoshi Nakamoto, the mysterious figure behind the world’s first digital currency.

Over the years, there have been several major exposes of Satoshi, and none of them stuck. Most recently, in Money Electric: The Bitcoin Mystery, director Cullen Hoback names a Canadian developer named Peter Todd. Todd says he is not Satoshi and strongly denies the documentary’s claims.

Why Bitcoin’s Anonymous Founder Matters

Cryptocurrency is now a nearly $2.4 trillion industry that is becoming more popular with each passing month. As such, it is somewhat incredible that the identity of the founder — or founders — remains a mystery.

It’s understandable that Satoshi would want to stay off the radar. The combination of transparency and anonymity is a key part of Bitcoin’s ethos. There is the idea that we should be able to transact without the oversight of governments or banks. Additionally, the blockchain was designed to be based on consensus, and by removing the figure, Satoshi’s demise made this possible.

Blockchain experts believe that Satoshi could hold up to 1.1 million BTC. That’s about 5% of the total BTC in circulation in a wallet that hasn’t been touched since Bitcoin was born. Arkham Intelligence, a blockchain de-anonymization company, traced the coins to over 22,000 addresses.

With Bitcoin trading at around $67,000 right now, Satoshi’s holdings translate to over $73 billion. This places Satoshi among the richest people on the planet — at least on paper.

As an investor, it’s worrying. If Satoshi ever decided to sell those coins, it would send shockwaves through the market. There is some assurance that those funds have not been touched. But it is yet another risk that Bitcoin investors need to be aware of.

Crypto investing is all about minimizing risk

Cryptocurrencies have generated incredible profits over the past decade. The potential to earn huge profits makes Bitcoin and other digital currencies attractive to investors. On the other hand, cryptocurrency can be extremely volatile and there is a risk that prices will drop to zero.

As an investor, Satoshi’s Bitcoin deposit is one of the many risks you need to be aware of. That’s why some suggest that the very act of revealing Satoshi’s identity could be stirring the hornet’s nest. Not only could it cause trouble for the Bitcoin creator, but it could also trigger the sale of some of that huge pile of Bitcoin.

It is important to be aware of the changing regulatory landscape and the evolution of the underlying technology. We don’t know how the technology will develop, nor what impact increased regulation might have on investors. Another concern is the crypto exchanges themselves. As we have seen with the collapse of FTX and other platforms, there is not much investor protection in crypto now.

If you want to buy cryptocurrencies, make sure you use a reputable exchange or brokerage. For example, Robinhood is a crypto broker that keeps most digital assets offline in cold storage. Click here to open an account and learn more about how robinhood keeps your crypto safe.

Conclusion

In the end, what matters more than Satoshi’s identity is that a single person could control a reserve of 1.1 million BTC, worth tens of billions of dollars. One of the best ways you can minimize your risk is to invest only the money you can afford to lose and make sure cryptocurrencies are only a small part of your portfolio.