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Satoshi's Dilemma Satoshi has created a new currency, a cryptocurrency. The currency has become more popular and valuable than Satoshi could have imagined. Sat

by Varcht 13y ago

Satoshi's Dilemma Satoshi has created a new currency, a cryptocurrency. The currency has become more popular and valuable than Satoshi could have imagined. Satoshi now holds almost $1 Billion of his new currency. Due to the currencies psuedo-anonimity, low liquidity and it's value in illicit trade it is far too dangerous for Satoshi to cash in and reveal himself...

declan 13y ago
Yes and no. The town I live in has multiple billionaires living in it, and is adjacent to two with even more. I've visited two houses owned by such folks and their answer is what you'd expect: private security guards. Large, well-armed, and very unfriendly until they've verified via radio you're actually supposed to be there. The key is, though, and maybe this is what you're referring to, that these folks don't store wealth on their home PCs. So their threat model is a little different. I'm sure HN readers who follow Bitcoin more closely than I do could think of a better system, but presumably the real Satoshi could hire lawyers to set up a company or trust to hold his bitcoins, sell them over time, and store the proceeds in a more traditional manner. Not especially difficult. And, assuming taxes are paid, it may even be possible to remain anonymous.
- Varcht 13y ago
  I'd be interested to hear what options he has too.
nly 13y ago
> Due to the currencies psuedo-anonimity, low liquidity and it's value in illicit trade it is far too dangerous for Satoshi to cash in and reveal himself... - None of Satoshis coins can be linked to illicit trade because he mined them himself. - Low liquidity isn't really a problem, the Bitcoin community is so fanatical that any coins held by Satoshi would likely sell at a premium... even without the fanclub, he'd certainly make enough to live comfortably for the rest of his life even if he couldn't liquidate all his holdings. - The same fanclub seems quite fierce in defending Dorian/Satoshi. - The tax situation has been official clarified in the UK. Now its recognised as a Capital Gain, US citizens can presumably come here to sell Bitcoin and avoid double taxation under tax treaty? (Possibly, I'm not an accountant or a lawyer)
- Varcht 13y ago
  I didn't mean to imply anything illicit concerning Satoshi. I meant that those that would be interested in the stash could be the silk road types or worse. I find it curious that Dorian/Satoshi are not spending the money. Why not? Imagine having $1 billion and not being able to touch it.
- adventured 13y ago
  If Satoshi still has his ~$400m in bitcoins, he could also likely strike a great deal with someone like Andreessen Horowitz (the cash), maybe with coinbase (build it), to create a sort of bitcoin bank (at a discount to his holdings in exchange for the liquidity to exit). It would enable a rather unique liquidity tool, sort of like a central bank; the new entity could provide bitcoins to bitcoin service businesses on demand for a fee (eg if they're having a hard time getting bitcoins or for any reason really).

by Varcht 13y ago

declan 13y ago

Yes and no. The town I live in has multiple billionaires living in it, and is adjacent to two with even more. I've visited two houses owned by such folks and their answer is what you'd expect: private security guards. Large, well-armed, and very unfriendly until they've verified via radio you're actually supposed to be there. The key is, though, and maybe this is what you're referring to, that these folks don't store wealth on their home PCs. So their threat model is a little different. I'm sure HN readers who follow Bitcoin more closely than I do could think of a better system, but presumably the real Satoshi could hire lawyers to set up a company or trust to hold his bitcoins, sell them over time, and store the proceeds in a more traditional manner. Not especially difficult. And, assuming taxes are paid, it may even be possible to remain anonymous.

Varcht 13y ago
I'd be interested to hear what options he has too.

nly 13y ago

> Due to the currencies psuedo-anonimity, low liquidity and it's value in illicit trade it is far too dangerous for Satoshi to cash in and reveal himself... - None of Satoshis coins can be linked to illicit trade because he mined them himself. - Low liquidity isn't really a problem, the Bitcoin community is so fanatical that any coins held by Satoshi would likely sell at a premium... even without the fanclub, he'd certainly make enough to live comfortably for the rest of his life even if he couldn't liquidate all his holdings. - The same fanclub seems quite fierce in defending Dorian/Satoshi. - The tax situation has been official clarified in the UK. Now its recognised as a Capital Gain, US citizens can presumably come here to sell Bitcoin and avoid double taxation under tax treaty? (Possibly, I'm not an accountant or a lawyer)

Varcht 13y ago
I didn't mean to imply anything illicit concerning Satoshi. I meant that those that would be interested in the stash could be the silk road types or worse. I find it curious that Dorian/Satoshi are not spending the money. Why not? Imagine having $1 billion and not being able to touch it.
adventured 13y ago
If Satoshi still has his ~$400m in bitcoins, he could also likely strike a great deal with someone like Andreessen Horowitz (the cash), maybe with coinbase (build it), to create a sort of bitcoin bank (at a discount to his holdings in exchange for the liquidity to exit). It would enable a rather unique liquidity tool, sort of like a central bank; the new entity could provide bitcoins to bitcoin service businesses on demand for a fee (eg if they're having a hard time getting bitcoins or for any reason really).