By Valeria Grekova
October 29th, 2018

Halloween special: crypto conspiracies

Halloween special: crypto conspiracies

By Valeria Grekova
October 29th, 2018

What can be better for a spooky season than some old-fashion conspiracy theories? Crypto industry seems to be overflowing with conspiracy, and it is not surprising: no one even knows who created it in the first place. We only know the alias – Satoshi Nakamoto, and that’s about it. There are countless theories on his identity along with some other crypto mysteries: here are some of the most interesting ones (probability may vary).

1/ Bitcoin was created by Chinese socialists

Some believe that bitcoin was created by the Chinese to put an end to the US hegemony and the “dollar dependence”. In addition, the Chinese had to come up with a new effective transaction system to protect themselves in case of disconnection from the SWIFT.

Adherents of the theory point out that the rise of Bitcoin in 2017 miraculously coexisted with the growth of China’s foreign trade and, at the same time, the growth of the US foreign tax deficit. Besides that, the Bitcoin mining giant Bitmain is a Chinese company. This cannot be a coincidence, right?

However, China has a difficult relationship with crypto. Last year, the Chinese government stroke the crypto market with a ban on ICOs and the closure of Chinese exchanges – making this theory just a little bit unconvincing.

2/ Whales intentionally crashed the crypto market when the BTC rate was at its peak

According to this conspiracy, so-called “whales” (investors who started buying BTC years ago and accumulated large amounts of it) alongside large mining pools collapsed the market in order to squeeze out small players. When the oldest cryptocurrency exchange rate approached $20,000, “whales” began to actively sell it. As a result, they have accumulated fiat money, while independent miners were forced to quit, and small investors had to sell off their coins (for whales to buy). It was a cooperative strategic move to monopolize the market.

Supporters of this theory say that it all makes sense even in the longer perspective. Later, when bitcoin will switch to a Proof-of-Work protocol, major owners will determine the future development of the network, so whoever accumulates the maximum amount of BTC will have a vote on deciding the future of the digital gold.

3/ Nick Szabo is Satoshi

This one actually sounds possible. Some people claim that the man behind Satoshi Nakamoto’s pseudonym is Nick Szabo, a cryptographic scientist. Recently the UK-based University of Aston conducted a linguistic analysis of Szabo’s texts and Bitcoin white paper. The study showed that the texts were probably written by the same person!

Also, at this point, everyone knows that in 1996 Sabo came up with the smart contracts concept and later in 1998 – the “Bit Gold”. When the investigator Dominic Frisby said that he had found circumstantial evidence of Nick being Satoshi, Szabo responded: “I’m afraid you got it wrong doxing me as Satoshi, but I’m used to it” which led some to further suspicions.

4/ Governments secretly accumulate bitcoin

According to supporters of this theory, governments around the world are trying to buy out all existing BTC.

Although it is difficult to determine how much BTC exactly belongs to states, cryptocurrency confiscations are becoming more and more common with the increasing number of accusations and lawsuits. Several countries, including the US, that officially does not have a property right to BTC, must have already gained thousands of confiscated coins.

5/ Bitcoin was created by the AI

“Bitcoin was created by uncontrolled artificial intelligence” – an intriguing conspiracy that fascinated many people yet sounds like a sci-fi or cyberpunk movie plot.

This theory about the origin of Bitcoin was endorsed on YouTube by the UFO Today channel (which has always stuck to the topic of UFOs but apparently decided to try something new).

The quality of BTC coding and its influence on technology have actually led many enthusiasts to seriously believe that behind it stands artificial intelligence, and Bitcointalk has a lot of amusing discussions on the matter. However, at the moment, there seems to be no hard evidence to back up this theory.

6/ Bitcoin is connected to the US National Security Agency

Surprisingly, there are a lot of posts concerning NSA-related conspiracies. They claim that the US National Security Agency is behind the SHA-256 algorithm. SHA-256 is a mathematical protocol that BTC mining uses as a Proof-of-Work algorithm. This theory appeared in 2013 after the details about NSA online mobile activity surveillance were disclosed. Proponents of this theory claim that, the NSA may have left the same backdoor in the SHA-256 protocol. Apparently, bitcoin is a part of some large-scale plan to control everyone. A document revealed by Snowden allegedly proves it.

However, this theory does not look as plausible if we remember that SHA-256 is an open algorithm that cryptographers have been utilizing for 15 years. The list of the National Institute of Standards and Technology (SHA-256) is still listed as a secure protocol. Relatively speaking, it is rather unlikely, that being a semi-anonymous currency bitcoin is suited for controlling and monitoring money transactions around the globe in the interests of one organization. We have nothing to worry about. Right?

7/ New World Order and Rothschilds

Bitcoin was created by the secret powerful global government as the currency of the Illuminati’s New world order, designed to destroy local national currencies and install a new international regime. The Rothschilds and the Bilderberg Club helped. Moreover, bitcoin perfectly links to the biblical number of the beast, so basically, it is foreshadowing the Apocalypse and the end of everything.

Okay, obviously, we are joking. Most of these theories can be easily debunked. However, certain conspiracies keep finding their passionate believers and stir up massive debates from time to time. Who Satoshi really is and is there a certain organization or a government behind the growing and prospering crypto industry? Only time will tell, or will it?

Disclaimer: we are listing these theories for informational and entertainment purposes only. We are not promoting any of this ideas or targeting any person/company. Do a thorough check before drawing conclusions or investing in anything.