Charles Hoskinson suggests that Satoshi Nakamoto remained anonymous due to legal uncertainties.
In its early days, Satoshi Nakamoto controlled 100% of Bitcoin’s mining power and governance.
Hoskinson challenges the narrative of Bitcoin as an immaculately conceived entity outside individual control.
In a recent video, Charles Hoskinson, founder of IOG and the Cardano blockchain, shared his perspective on why Satoshi Nakamoto, the pseudonymous creator of Bitcoin, chose to remain anonymous. Hoskinson also revealed details about Bitcoin’s first years, when mining and control were initially centralized.
The video expands on Hoskinson’s previous live Q&A session, in which he countered accusations that Cardano’s ADA token could be considered an unregistered security. His new statements shed light on Bitcoin’s opaque origins.
Preserving Anonymity Due to Legal Ambiguity
According to Hoskinson, Satoshi Nakamoto decided to stay anonymous to avoid potential legal issues around issuing a currency. Several failed historical attempts at making private coins faced challenges from governments.
“In the United States, creating a digital asset and distributing it is legally ambiguous,” Hoskinson said. “Coins like the Liberty Dollar, Ron Paul Dollar, and others did not fare well.”
Remaining anonymous prevented Satoshi from being a target if governments categorized Bitcoin as an illegal private currency.
Hoskinson also recounted Bitcoin’s highly centralized beginnings. In the first days, when few people knew about the technology, Satoshi Nakamoto alone controlled 100% of Bitcoin’s mining power and governance.
As usage spread, Satoshi taught select pioneers like Hal Finney to run nodes and mine coins. But the network still relied completely on Satoshi’s oversight in this earliest phase.
“He was basically able to change the Bitcoin network in any way he pleased,” said Hoskinson. Only after significant adoption could Bitcoin be considered decentralized.
The reminder of Bitcoin’s origins counters the narrative of some Bitcoin maximalists, who describe it as an “immaculate conception” outside individual control. All networks require initial central guidance to function. But Bitcoin has successfully transitioned power to a global community.
Hoskinson concluded by implying that Cardano has followed a similar trajectory—carefully navigating unclear legal territory in the frontier days of crypto, but with responsibility rather than anonymity. The blockchain’s transparent and accounted-for development now rests in the hands of its decentralized community.
By understanding the context that led Satoshi to hide his identity, one better appreciates Bitcoin’s real-world technological evolution and can judge modern blockchains accordingly. The cypherpunk spirit persists in those brave enough to cautiously push boundaries under public scrutiny rather than behind a veil of secrecy.