Thursday, March 6, 2014

Did Newsweek Just Validate Bitcoin Conspiracy Theory?

Dan Primack writes:
Newsweek claims to have found the creator of Bitcoin. Did it also discover something else?...

Here is one piece of the Newsweek story that does fit into one of the more popular conspiracy theories: That Bitcoin was actually created by the NSA, or some other U.S. intelligence agency.

Here is what Nakamoto's brother told Newsweek:

"What you don't know about him is that he's worked on classified stuff. His life was a complete blank for a while. You're not going to be able to get to him. He'll deny everything. He'll never admit to starting Bitcoin."

To be clear, I'm pretty much an Ockham's razor sort of guy. But there is not necessarily anything inconsistent between Bitcoin being founded by SoCal Satoshi Nakamoto and it also being founded as a government program. Moreover, it is basically the only existing conspiracy theory that could still hold water, if Nakamoto is who Newsweek says he is.
I also found this comment by Nakamoto in the Newsweek story curious:
"I am no longer involved in that and I cannot discuss it," he says, dismissing all further queries with a swat of his left hand. "It's been turned over to other people. They are in charge of it now. I no longer have any connection."
Who are these "other people" that he turned Bitcoin over to? Pump and dump artists? The government? Identifying the "other people" will tell us a lot about Bitcoin.


  1. As I commented on a different story, if you take away the idea of bitcoin anonymity you are left with the kind of all-digital currency that many have warned was government's wet dream.

  2. BITCOIN?...where's the gold?

    GEOFF CANDY: …Hugo Ch├ívez managed to do it fairly easily as well…

    ERIC SPROTT: And he did and I just don’t think the gold is there… my logic suggests that.

    GEOFF CANDY: Where do you think it is?

    ERIC SPROTT: It’s been used regularly because my own analysis is that for the last 14 years and even longer than that, the demand has been in excess of the supply. You can look at all the data… its quite relevant, it’s there and I think western central banks who don’t have to declare that they're selling gold because they have a line in their balance sheet called gold and gold receivables… one line and how much is physical and how much has been leased which was very convenient on their part… and I think they’ve been leasing it out for the last 14 years and demand has always exceeded supply for that time. When I wrote the article “Do the western central banks have any gold left” in late 2012 it seemed obvious… we knew how much gold they had and now its 12 years later, and they probably don’t have any left. Was I surprised to see the raid on gold and the dumping of the ETFs at 1300 tons come up? No I was not because that was the problem, they didn’t have gold. And I believe it to this day… we’re all going to find out that they don’t have the gold, that they’ve got a currency that’s valueless that most of the countries are broke. That’s the easiest call in the world to make, that most countries are broke… look at the obligations they have and look at the income they have and there’s just no way they're going to meet their obligations, which means their currencies are going to be coming under pressure. What’s the alternative to currencies… the alternative is to own something real and for the most part the intention goes to gold.

  3. Robert,

    The core developers.

    This is how open source software projects work...

    1. No shit that's how open source software works but that's not what Nakomota said. He said he gave it up to others. That's totally different and weren't you on EPJ pooh, poohing the sniper reports. Wenzel you should ban this guy.

    2. Adam also ignores the fact that Nakamoto worked for the military.

    3. There's no incompatibility between 'giving it up to others' and the typical model of open source development. Many projects online are passed on to others when the creator becomes bored with them or goes on to other things. Been that way for over 20 years now, before the term 'open source' came about. Don't expect an old school guy like that to use modern terms. He'll use the terms that we used 20 years ago or more and that would be more or less what he said.

      Now I haven't done any modern 'open source' coding but I did its functional equal in the early 1990s (before the web) and what he said and how he said it makes perfect sense to me without any conspiratorial overtones.

  4. Wow! Just as bitcoin is crashing and comparisons are being made to the south sea bubble, the secretive founder appears? Wtf? Sounds like someone's losing their ass in bitcoims and wants to trot the "founder" out to save the day.

  5. "it is basically the only existing conspiracy theory that could still hold water"


  6. Its not him! The real Satoshi just posted on his P2P Foundation Member Page after 3 years of silence:

    1. oh that DEFINITELY means its not him and DEFINITELY negates the NSA conspiracy theory ... I mean there is just no possible way, at all, that this guy could have posted that message

      phew ... that settles that ... Honey Badger can reappear now

  7. The real SN turned it over to Gavin Andresen and the other core bitcoin devs. That's no mystery and has been covered elsewhere.

  8. A fool and his Bitcoin are soon parted...