Matt Green, a cryptocurrency professor at Johns Hopkins University, says Nakamoto has the power to tank the currency if he wants to.
Bitcoin has a finite supply of 21 million which is expected to be reached by the year 2140.
Nakamoto’s one million bitcoins amount to five percent of the entire cryptocurrency.
“The thing about bitcoin is if you control a million of them, you have the ability to flood the market at any point. Think of them as rare baseball cards. They’re valuable because they’re rare. If somebody could dump hundreds or thousands of Mickey Mantle trading cards, rare ones, onto the market, they wouldn’t be worth so much anymore,” said Green.
Essentially, if Nakamoto chose to sell their bitcoin, they could flood the market and cause the price of bitcoin to tank.
Ben Yu, a bitcoin investor living in San Francisco, says Nakamoto’s stake in bitcoin is extremely significant.
“If bitcoin fulfills its role of becoming a global currency, than Satoshi Nakamoto would likely be the richest person in the world and also hold a proportionately higher share of the ultimate supply of bitcoin than something like the U.S. government holds in gold today,” said Yu.
Yu’s math works out. The U.S. government holds the most gold reserves of any other entity in the world, at about 8,000 tonnes.
That’s a little over four percent of the world’s total supply, less than Nakamoto’s five percent stake in bitcoin.
Some analysts believe bitcoin’s rally is only just beginning.
Kay Van-Petersen, a Saxo Bank analyst, told CNBC in May that he estimates bitcoin could hit $100,000 by 2027.
If that prediction comes true, Nakamoto would have around $100 billion.