Bitcoin prices plummet amid speculation that a block of cryptocurrency possibly linked to creator Satoshi Nakamoto has simply changed hands
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Bitcoin prices fell Wednesday afternoon when it was speculated that a long-standing block of coins, with links to the alleged creator of the virtual asset, had simply changed hands.
A Twitter account configured to issue tweet alerts when currencies linked to certain addresses are exchanged indicates an exchange of a batch of virtual currencies which is “possibly” linked to Satoshi Nakamoto, the person or people who wrote the software code for the Digital currency in 2009. Nakamoto’s identity has long been speculated, but the creator of bitcoin has never been verified.
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About 11 years ago, he created or mined the original batch of bitcoins which is widely known as the Genesis Block.
The tweet suggests that the batch of around 40 or 50 bitcoins that changed hands on Wednesday was mined in the first month of the creation of bitcoin.
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Of course, the anonymous nature of Bitcoin does not allow to know the owner of the coins, but the technology that underlies Bitcoin allows to track the addresses of certain blocks of coins.
Finding parts related to the parent of the digital asset has become a common pastime in the crypto community. Tracking large blocks of bitcoins also helps to understand the habits of those who have a substantial influence on bitcoin prices by the strength of their holdings.
Bitcoin futures, which represent a single bitcoin, fell 1.3% Wednesday afternoon, with May being the most traded.
BTCK20,
BTC.1,
at $ 9,550, while bitcoin spot prices
BTCUSD
They were 1.8% at $ 9,525, according to CoinDesk data.
Bitcoin futures have increased more than 32% so far in 2020, and were trading at a high of $ 9,895 on Wednesday before leveling off.
NAIL number of industry participants I pointed out that the fact that bitcoins come from the 2009 vintage does not necessarily mean that they are related to Nakamoto.
However, that didn’t stop interest in the rise of bitcoins on Twitter, as the term “satoshi” became a viral term on the social media platform Twitter on Wednesday afternoon.
Bitcoin was created 11 years ago as an alternative payment system, which operated anonymously and as a peer, thereby eliminating the so-called trusted third party.
Cryptocurrency was born amid fears that modern currency would be fabricated by central banks that print fiat money to stimulate economic growth, a vision that gained traction in the midst of the COVID-19 pandemic.
Proponents of bitcoin argue that because digital assets are decentralized from central banks or governments, individuals can trade without intermediaries. This is part of the allure of bitcoin.
However, nascent assets have not grown significantly since reaching a peak in December 2017 near $ 20,000.
Critics also point to the association of cryptocurrency with money laundering as one of its biggest drawbacks. So far, bitcoin has not reached enough scalability to make it a legitimate currency, let alone a store of value, say other opponents.
That said, bitcoin has managed to resist gold so far this year, with gold futures.
GC00,
up to 15% in the year to date. In comparison, the S&P 500 index
SPX
it has dropped 8.1% so far this year and the Dow Jones Industrial Average
DJIA
They fell nearly 14% after a coronavirus-induced recession that virtually knocked the equity markets down in March.
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