Saturday, October 2, 2021

What Would Happen if Satoshi Sold All His Bitcoins?

If Satoshi sell all that BTC would have catastrophic effects on the ecosystem. We will most likely see at least one of these scenarios. 

Nothing would happen

If Satoshi decides to sell all his coins, the odds are very high that nothing would happen. As a highly intelligent guy, he would probably sell the coins in small waves. This way, he could slowly cash out without causing price fluctuations. He would also need to sign up to various exchanges to keep the effects diffuse.

The price would never fluctuate in the long run, and people in the BTC ecosystem could rest easy, knowing that a mass dump is no longer an option.

The coins would lose value

On the other hand, he could tank the prices as soon as he clicks sell on an exchange. Economics teaches us that as supply rises, demand falls. After about 10,000 BTC, he’d run out of buyers because prices would be abysmal. 

At this stage, it wouldn’t make any sense to continue dumping the coins simply because they’d have no monetary value to him. But if he pressed on, Bitcoin may reach an all-time low and never rise again.

Satoshi Would Never Sell all His Coins

If you were Satoshi and you had over a million BTC, would you sell? If you’re like most people, your answer is an emphatic NO! The odds are that, like you, Satoshi would never dump his Bitcoin. Here are four reasons why.

It doesn’t fit his vision for the coin

It’s clear that someone as smart as Satoshi would never sell all his coins in that way. His vision for the currency is a global currency that any government doesn’t control. Selling his coins may trigger a series of events that makes that virtually impossible to accomplish.

His BTCs are too valuable

Satoshi selling all his coins would be synonymous with someone who sold all his Apple shares just as the company began its rise. It would be absolutely ridiculous. Bitcoin is currently the hottest cryptocurrency, with enough clout to sway all the other coins; whenever the price of Bitcoin rises, all currencies rise with it, and vice versa.

These fluctuations have enabled traders to cash out by opening long and short positions. Bitcoin has thus become a source of limitless wealth, with several opportunities to make bank. The larger it grows, the more Satoshi’s coins are worth, and the richer he’ll be. Why would he ever sell?

He loves anonymity

Satoshi is also famous for not being famous. As we’ve already established, all we know is that he created the network. We don’t know his real name, his nationality, or anything else. Selling all these BTC at once would definitely raise some eyebrows, and it’s only a matter of time before someone figures out it’s him. That would be out of character for someone who’s stepped away from BTC since 2010.

Besides savvy cryptocurrency users, the government may also pick an interest. Remember that his BTC is estimated to be worth up to $30 billion. Since the sale is for straight-up cash, he’d suddenly have billions from “unfamiliar sources” sitting in his account. All that money flooding in at once would definitely raise some red flags. 

The bottom line

Satoshi Nakamoto is possibly one of the most enigmatic personalities of our era. He (or she or they) created the ecosystem we have today. If he were to sell his 1 million BTC, the chances are that the approach would be methodological, spread over several months, and exchanges. Otherwise, the coin would crash and may never rise again.

However, it’s unlikely that Satoshi would sell his stash, considering Bitcoin’s growth in recent years. More likely, he’d sit back and watch his wealth grow.


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