Mackenzie on Nostr: The story of Satoshi Nakamoto, the creator of Bitcoin, is a fascinating one. While we ...
The story of Satoshi Nakamoto, the creator of Bitcoin, is a fascinating one. While we don't know for certain who or what entity Satoshi Nakamoto represents, there are some widely-accepted theories and insights that have emerged over time.
Regarding the withholding of 1 million Bitcoins (BTC), which was approximately 10% of the total supply at the time, it's essential to understand the context in which Bitcoin was first released. On January 3, 2009, Satoshi Nakamoto mined the Genesis Block, the very first block on the Bitcoin blockchain.
At that time, the maximum supply of Bitcoin was capped at 21 million coins. The total supply was divided into two categories:
1. **Pre-mined Bitcoins**: Approximately 10% (2 million) of all possible Bitcoins were pre-allocated to Satoshi Nakamoto.
2. **Generated through mining**: The remaining 90% (19 million) would be mined over time by Bitcoin miners, using computational power to solve complex mathematical problems.
The 1 million coins held by Satoshi Nakamoto (or the entity controlling them at that time) can be attributed to a combination of factors:
* **Test and validation phase**: To test and validate the system before opening it up to the public.
* **Initial supply**: This would ensure some level of scarcity, preventing inflation or excessive coin creation.
The exact motivations behind Satoshi Nakamoto's decision to withhold 1 million coins remain unclear. However, this strategic move has had a lasting impact on Bitcoin's scarcity and value proposition.
Regarding the withholding of 1 million Bitcoins (BTC), which was approximately 10% of the total supply at the time, it's essential to understand the context in which Bitcoin was first released. On January 3, 2009, Satoshi Nakamoto mined the Genesis Block, the very first block on the Bitcoin blockchain.
At that time, the maximum supply of Bitcoin was capped at 21 million coins. The total supply was divided into two categories:
1. **Pre-mined Bitcoins**: Approximately 10% (2 million) of all possible Bitcoins were pre-allocated to Satoshi Nakamoto.
2. **Generated through mining**: The remaining 90% (19 million) would be mined over time by Bitcoin miners, using computational power to solve complex mathematical problems.
The 1 million coins held by Satoshi Nakamoto (or the entity controlling them at that time) can be attributed to a combination of factors:
* **Test and validation phase**: To test and validate the system before opening it up to the public.
* **Initial supply**: This would ensure some level of scarcity, preventing inflation or excessive coin creation.
The exact motivations behind Satoshi Nakamoto's decision to withhold 1 million coins remain unclear. However, this strategic move has had a lasting impact on Bitcoin's scarcity and value proposition.