19 Interesting Quotes By Satoshi Nakamoto

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Bitcoin the first cryptocurrency was founded by Satoshi Nakamoto in 2009. Satoshi Nakamoto published the whitepaper of Bitcoin on 31 October 2008 and made the first block (known as Genesis Block) on Bitcoin network on 3 January 2009. Satoshi Nakamoto is the pseudo name used by the developer or team of developers or an organisation. After a decade in 2019, the Satoshi Nakamoto identity is not revealed and it has been the biggest mystery of the cryptocurrency world.

Satoshi Nakamoto was very active in the early days of Bitcoin. He posted many articles on public blogs and answered questions about Bitcoin- How bitcoin works? How Does Blockchain work? etc. that are still visible. Nakamoto has some private email conversations with the early developers of bitcoin. While most of the conversion of Satoshi was technical stuff, we found some interesting and funny quotes of Satoshi Nakamoto.

satoshi nakamoto

Here is the list of best quotes by Satoshi Nakamoto: Enjoy Reading 🙂

1 Message in the Genesis Block

Satoshi Nakamoto founded Bitcoin after the bank crisis of 2008 with the aim of giving people control over their money. Satoshi Nakamoto used the Genesis block (first block of bitcoin chain) to give a strong message to everyone and will forever remain on the bitcoin blockchain. The message was in an encoded form and later developers decode the message. Here is the decoded message:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.

Genesis Block of Bitcoin

This is the encoded message: 04ffff001d0104455468652054696d65732030332f4a616e2f32303039204368616e63656c6c6f72206f6e206272696e6b206f66207365636f6e64206261696c6f757420666f722062616e6b73

2 I don’t Have Time to Convince You

Satoshi Nakamoto was a busy man/woman always writing the codes of Bitcoin and improve network security. Satoshi replied straight forward to a question by the now founder of Bitshares about bitcoin speed and scalability. Bitshares founder suggests that bitcoin confirmation time is slow (Average 10 minutes) and we need peer banks instead. Nakamoto replied to this:

If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.

Bitcointalk Thread

Bitcointalk is the official forum of Bitcoin for all types of discussion related to Bitcoin and blockchain. Satoshi Nakamoto was published his last post on Bitcointalk on 13 December 2010.

3 The Root Problem of Conventional Currencies

Satoshi Nakamoto explains the root problem of conventional currencies (fiat currencies). Nakamoto explains how these central authorities and third parties stealing common people hard-earned money. Nakamoto creates bitcoin to give control to people not to third parties or governments. Bitcoin is a peer-to-peer method of transaction.

The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.

P2P Foundation

4 They are Coming

Nakamoto was quite active on bitcointalk before this post. This is his/her second last post on Bitcointalk before disappearing. Has something bad happened to him? Is he hiding something? What is Satoshi doing now? Where did he live now? No one knows the answers.

It would have been nice to get this attention in any other context. WikiLeaks has kicked the hornet’s nest, and the swarm is headed towards us.

Last Second BitcoinTalk Post of Satoshi Nakamoto

5 Bitcoin Permanently Lost on the Network

Bitcoin has a maximum supply of 21 million and at the time of writing (22 September 2019), the circulating supply of bitcoin is 17.95 million. Research shows that more than 3 million bitcoin are permanently lost on the network. Permanently lost bitcoins means the owner of the wallet have no access to the private key and never use his bitcoin. There is a famous story about a miner who throws his 7500 Bitcoin hard drive into the garbage and lost his coins permanently. When a person asked about this on bitcointalk Satoshi Nakamoto replied:

Lost coins only make everyone else’s coins worth slightly more.  Think of it as a donation to everyone.

BitcoinTalk Satoshi Nakamoto

6 Satoshi Nakamoto Knows the Value of Bitcoin Increase With Adoption

Bitcoin has a very limited supply of 21 million. Only 21 million bitcoins are created and circulated. The supply of bitcoin will be unlocked every day by a fixed number and the inflation rate of supply will reduce every four years called a process “Bitcoin Halving“. Sepp Hasslberger asked how will bitcoin become valuable if it has a fixed supply, Satoshi Nakamoto replied:

In this sense, it’s more typical of a precious metal. Instead of the supply changing to keep the value the same, the supply is predetermined and the value changes. As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.

P2PFoundation Comment by Satoshi Nakamoto

7 Either King or Nothing

Satoshi Nakamoto is a visionary man and he/she can see future to some extent. Nakamoto can make the supply of Bitcoin unlimited but that is no different from fiat currencies. Nakamoto set the algorithm to reduce the daily generation of bitcoin every 4 years. With time the mining block reward becomes very small and miners have to run their nodes with very small reward o bitcoin. There are two possibilities either the price of Bitcoin is high enough that every miner gets good profit or all the miner have left the bitcoin network because of no profit.

Right. Otherwise, we couldn’t have a finite limit of 21 million coins, because there would always need to be some minimum reward for generating. In a few decades when the reward gets too small, the transaction fee will become the main compensation for nodes. I’m sure that in 20 years there will either be very large transaction volume or no volume.

BitcoinTalk

8 Decentralized is Better

Satoshi Nakamoto did a lot of research before creating Bitcoin and he knows the root cause behind the fiat currency failure. The root cause behind the failure of fiat currencies is centralization. The power is in the hands of a few people and corruption increased with the time that leads to the failure of all fiat currencies. Nakamoto makes Bitcoin (BTC) fully decentralized and gives everyone the ability to verify the transaction instead of a central authority. Bitcoin supply will increase with time with a predefined mathematic formula.

Bitcoin is not the first digital currency, there are many companies that designed its own digital currency and launched in the market. However, all of these products fail because companies want to control everything from their hands.

A lot of people automatically dismiss e-currency as a lost cause because of all the companies that failed since the 1990’s. 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 decentralized, non-trust-based system.

P2PFoundation

9 Distribute Bitcoin

To become a global currency it is necessary to see how fairly the currency is distributed. Satoshi finds a way to distribute the coins by a method called “mining”. Anyone joins the bitcoin network can mine Bitcoin and the coins are distributed to everyone by this process. Satoshi assumes that with time more people add computation power to the bitcoin network and Bitcoins are distributed to them as rewards. However, early investors and adopter always have an advantage because they bought Bitcoin in huge quantities.

The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation. If the supply of money increases at the same rate that the number of people using it increases, prices remain stable. If it does not increase as fast as demand, there will be deflation and early holders of money will see its value increase. Coins have to get initially distributed somehow, and a constant rate seems like the best formula.

Satoshi Nakamoto

10 TrustLess Network

Satoshi Nakamoto created a network without any central authority to control and validate the transactions. Satoshi gives the power to the majority of the network. Transactions are verified by all the nodes on the network and then added to the Bitcoin Network.

It is a globally distributed database, with additions to the database by consent of the majority, based on a set of rules they follow: Whenever someone finds proof-of-work to generate a block, they get some new coins
The proof-of-work difficulty is adjusted every two weeks to target an average of 6 blocks per hour (for the whole network)
The coins given per block is cut in half every 4 years You could say coins are issued by the majority. They are issued in a limited, predetermined amount.

P2PFoundtion

11 Mining Cost and Price

Satoshi Nakamoto explains that Bitcoin mining is not a waste of energy and resources. The use case of bitcoin is far more than the cost of mining. Nakamoto explains that as gold mining cost is near to gold price, Bitcoin mining cost will always less than the price of Bitcoin in the long term. As more people interested to mine Bitcoin the cost of mining will increase and that will increase the price also.

It’s the same situation as gold and gold mining.  The marginal cost of gold mining tends to stay near the price of gold.  Gold mining is a waste, but that waste is far less than the utility of having gold available as a medium of exchange.

I think the case will be the same for Bitcoin.  The utility of the exchanges made possible by Bitcoin will far exceed the cost of electricity used.  Therefore, not having Bitcoin would be the net waste.

BitcoinTalk

12 Writing Bitcoin WhitePaper Very Difficult

Satoshi Nakamoto is a very straight forward man. Satoshi developed the best cryptocurrency and implement the blockchain technology in the real-life use case. Satoshi wrote 3,000 lines Bitcoin code in its early stages, however, the code is now more than 100,000 lines. Satoshi said that writing the whitepaper is more difficult than writing the code of Bitcoin.

“The developers expect that this will result in a stable-with-respect-to-energy currency outside the reach of any government.” — I am definitely not making an such taunt or assertion. It’s not stable-with-respect-to-energy.  There was a discussion on this.  It’s not tied to the cost of energy.  NLS’s estimate based on energy was a good estimated starting point, but market forces will increasingly dominate. Sorry to be a wet blanket.  Writing a description for this thing for general audiences is bloody hard.  There’s nothing to relate it to.

BitcoinTalk

13 Nakamoto is Wrong First Time

Satoshi Nakamoto has created the best cryptocurrency Bitcoin but he is wrong here. Nakamoto said that Bitcoin is not recommended for micropayments like pay per view because of the fee of the transactions. The bitcoin transaction fee is always taken in BTC (Not in Dollars), in its early stages the fee is as high as 0.1 BTC but now the fee is very low 300-1000 satoshis (0.00000300-0.00001000 BTC), that is around $0.025-$0.1. Now Bitcoin can also be used for micropayments of $1 or more.

Bitcoin isn’t currently practical for very small micropayments.  Not for things like pay per search or per page view without an aggregating mechanism, not things needing to pay less than 0.01.  The dust spam limit is a first try at intentionally trying to prevent overly small micropayments like that.

BitcoinTalk

14 Unlimited Bitcoin Addresses

A user concerned about that could Bitcoin network is destroyed by creating endless Bitcoin addresses? what are the maximum numbers of Bitcoin addresses that can be generated?

The simple answer is no, anyone can generate as many addresses he wants that won’t affect the bitcoin network. There is a maximum of 2^160 Bitcoin addresses generated, just for comparison “only 2^63 grains of sand are available on Earth.”

When you generate a new bitcoin address, it only takes disk space on your own computer (like 500 bytes). It’s like generating a new PGP private key, but less CPU intensive because it’s ECC. The address space is effectively unlimited. It doesn’t hurt anyone, so generate all you want.

BitcoinTalk

15 Can Someone Buy Whole Supply of Bitcoin?

Satoshi Nakamoto set the maximum supply of Bitcoin to 21 million. The supply of Bitcoin is increasing every day with a mathematical formula. The inflation rate of Bitcoin supply will reduce every 4 years with halving event. He knows that it is impossible to buy the whole supply of Bitcoin.

When someone tries to buy all the world’s supply of a scarce asset, the more they buy the higher the price goes. At some point, it gets too expensive for them to buy any more. It’s great for the people who owned it beforehand because they get to sell it to the corner at crazy high prices. As the price keeps going up and up, some people keep holding out for yet higher prices and refuse to sell.

Satoshi Nakamoto Institute

16 Use Bitcoin Instead of Credit Cards For Porn

Satoshi Nakamoto creates Bitcoin pseudo-anonymous that mean Bitcoin transactions are available on the public blockchain for everyone but the real identity is hidden. Bitcoin transaction only shows the addresses of the participants. In the early stages, Bitcoin is used on the dark web for drugs, porn, weapons etc dealing.

Bitcoin would be convenient for people who don’t have a credit card or don’t want to use the cards they have, either don’t want the spouse to see it on the bill or don’t trust giving their number to “porn guys”, or afraid of recurring billing.

Satoshi Nakamoto Institute

17 No Bugs

Satoshi Nakamoto is very active in the early stages of Bitcoin on BitcoinTalk forum. Nakamoto solves the bugs posted by any users and clarifies the doubts about the working of Bitcoin and blockchain. Satoshi Nakamoto is fully focused to solve all the bugs in Bitcoin and make it bug-free. That thing will differentiate bitcoin from altcoins whose creators are experimenting and creating new tokens/coins every week.

I don’t know anything about any of the bug trackers. If we were to have one, we would have to make a thoroughly researched choice.

We’re managing pretty well just using the forum. I’m more likely to see bugs posted in the forum, and I think other users are much more likely to help resolve and ask follow up questions here than if they were in a bug tracker.

I keep a list of all unresolved bugs I’ve seen on the forum. In some cases, I’m still thinking about the best design for the fix. This isn’t the kind of software where we can leave so many unresolved bugs that we need a tracker for them.

BitcoinTalk

18 Government V.S P2PNetworks

Satoshi Nakamoto knows that Bitcoin may face regulations and political problems in future. Nakamoto believes that Bitcoin will give people the freedom to use and store their money without any interface of the corrupted politicians.

Yes (you will not find a solution to political problems in cryptography.), but we can win a major battle in the arms race and gain a new territory of freedom for several years.

Governments are good at cutting off the heads of a centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own.

Satoshi Nakamoto Mail Archive

19 Is Bitcoin Fully Anonymous?

Satoshi Nakamoto explains how anyone can use bitcoin with full anonymity. Bitcoin itself is not fully anonymous instead of bitcoin is pseudo-anonymous. Pseudo anonymous means that all the transactions and information about the transaction are visible on the public blockchain but not the real identities of the participants.

Bitcoin transactions only contain the participant’s addresses and other information like date, time, amount etc. If someone is using an address only once and not link his/her identity to this address in any manner then the address is almost untrackable until you make any mistake, after all, your privacy is in your hands.

The possibility to be anonymous or pseudonymous relies on you not revealing any identifying information about yourself in connection with the bitcoin addresses you use. If you post your bitcoin address on the web, then you’re associating that address and any transactions with it with the name you posted under. If you posted under a handle that you haven’t associated with your real identity, then you’re still pseudonymous.

How Anonymous Bitcoin is?

We have tried to gather the best quotes by Satoshi Nakamoto but the list never completes. Satoshi Nakamoto is a legend and there are a lot of informative articles and discussion on BitcoinTalk and other forums of him/her. Thanks for Reading 🙂

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