This blog is written by Sushmitha Krishna Kumar, Associate Data Scientist at Gramener. Sushmitha and Giri Ganesh analyzed the net worth of Satoshi Nakamoto, the inventor of Bitcoin.
On July 12th, 2019, for the first time the president of America, Donald Trump tweeted about bitcoins.
On September 29, 2008, at one point the market fell as if it was down the well. It was a historic day and Wall Street was shaking to its very foundation. Well, they say “Every new beginning comes from some other beginning’s end.” This was the perfect time for the evolution of the first bitcoin.
Below is the message that Satoshi Nakamoto posted on the Genesis block:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
– Bitcoin Blockchain
Who is Satoshi Nakamoto?
Bitcoin was invented in 2008 by an unknown person or group of people using the pseudo name Satoshi Nakamoto. Its source code was released as open-source software, a year later in 2009.
Even after a decade of Bitcoin’s existence, we still don’t know who Satoshi is! However, we know his net worth. Let’s explore the net worth of Satoshi Nakamoto and what it would take for him to become the richest person in the world. But before that…
What is Blockchain?
As the name indicates, a blockchain is a chain of blocks that contain information. A group of researchers originated this technique in 1991 with an intention to timestamp digital documents to avoid tampering. Almost like a notary. However, it wasn’t used much until it was adapted by Satoshi Nakamoto in 2009 to create a digital cryptocurrency Bitcoin.
How Was Bitcoin Created?
Bitcoin is created using a process called mining, which gets more complicated with time. With bitcoins, miners use special software to solve math problems. They get a certain number of bitcoins in exchange. This provides a smart way to issue the currency.
The bitcoin network automatically changes the difficulty of the math problems depending on the time to solve them. Satoshi never bought any bitcoin but he was the first and only miner for the 1st year.
In this time, he mined up to 1 Million bitcoins and then he disappeared in 2011. Since his disappearance, there has not been a single movement of bitcoins from his wallet.
What is the Net Worth of Satoshi Nakamoto?
Bitcoin was worth $1 in 2011, which means he owned $1 Million in 2011. Now, to calculate the current worth of Satoshi, we have to take into account all the bitcoin hard forks. Well, what is a bitcoin hard fork?
Bitcoin is a digital currency, which means it is implemented with a lot of software. This software is called the Bitcoin protocol and establishes a code of conduct for bitcoin users. If users are dissatisfied with the protocol, they can create their own version and fork the blockchain.
There are around 40 hard forks to date. For example, if you have a bitcoin and a fork happens, then you get both! That means Satoshi has a copy of all the hard forks to date. So, how much is Satoshi worth now?
Just considering the bitcoin alone he has around $11.76 Billion and including all the hard forks around $12 Billion.
The net worth of Satoshi Nakamoto was $19.6 Billion in 2017. Then, Bitcoin was at an all-time high of $20,000. It made him the 44th richest person in the world. If bitcoin reaches $110,000, Satoshi will become the richest person and will claim number 1 spot on the Forbes billionaire list.
Planning to invest in Cryptocurrency?
Cryptocurrencies are just a medium of exchange. They are means to digital transactions. They are virtual currencies that are completely independent of government control or any central authority.
Aside from all the hype surrounding cryptocurrencies in general, there are people out there who potentially believe in this technology and what it could mean for the future of financial exchange and worldwide commerce.
One of the basic underlying applications is that they will do away with banks completely. Beyond banks, cryptocurrencies also mean universal currency and this could be very useful for underdeveloped nations.
Many countries still do not have explicit systems that restrict, regulate or ban cryptocurrency. The decentralized and anonymous nature of bitcoins has challenged many governments on how to allow legal use while preventing criminal transactions. However, many countries are still analyzing ways to regulate the cryptocurrency. Overall, Bitcoin remains a legal gray area for much of the world.
Before you go for bitcoins, remember that you are subjected to every risk. Please learn the whole concept before buying it.
P.S: Check out other interesting and insightful data stories including physical data visualizations and video data stories. The data stories were produced during Data Storytelling Hackathon organized every month at Gramener.
