There has been a theory that Vladimir Putin is behind bitcoin. The theory has deepened as crypto falls amid Russian sanctions. Let's debunk the rumor.
May 12 2022, Published 9:34 a.m. ET
Bitcoin’s sharp decline as Russia struggles with sanctions triggered by its invasion of Ukraine seems to have deepened the mystery surrounding the flagship crypto. Is Vladimir Putin behind bitcoin?
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Satoshi Nakamoto is credited for building bitcoin, but nobody knows exactly who Nakamoto is. While some people have proudly claimed to be Nakamoto, others have vehemently denied being the one. Australian computer programmer Craig Wright is known as the self-proclaimed Nakamoto, yet many in the crypto community and beyond don’t believe it.
Tesla CEO Elon Musk and crypto expert Nick Szabo are the other people thought to be behind bitcoin, but they have denied it. Those casting the guessing net wider have even thought that Putin is a potential bitcoin founder.
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Is the "Putin behind bitcoin" rumor true?
Putin has been Russia’s president for many years. In that role, it would be hard to believe that Putin would have the time to devote to building a complex cryptocurrency system like bitcoin. In that case, it would be highly doubtful that he’s behind the crypto.
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Furthermore, Putin studied law in college and worked for the Soviet intelligence agency KGB. He isn't known to have any expertise in computer programming or cryptography, which are necessary to build something like bitcoin.
However, with his powers, Putin could get Russian experts to create bitcoin. As long as the real Nakamoto identity remains a mystery, Putin being behind bitcoin can be a valid part of the guesswork. A billionaire investor and bitcoin skeptic sensationally claimed that Putin created the crypto to sabotage Western economies.
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Are Russians behind bitcoin?
If Putin isn't personally or directly behind bitcoin, did Russians create it? Russia is among the world’s top crypto mining hubs. Putin once said that Russia’s vast energy resources give it an advantage in the crypto mining sector.
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Bitcoin mining consumes huge amounts of electricity, which could make the operation less profitable for those without access to cheap energy. For Russia, which is a leading oil and gas producer, the energy to mine cryptocurrencies is abundant. Perhaps that explains why Russians are heavily invested in crypto at more than $200 billion.
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What does Putin think about bitcoin?
Russia’s advantage in bitcoin mining has led some to worry that it could use the crypto to evade sanctions. Indeed, Russia has considered accepting crypto payment for its oil. As a result, some sanctions have specifically targeted the country’s crypto businesses, such as Bitcoin miner BitRiver. A number of major exchanges including Binance and Coinbase have also limited their services in Russia.
Just received a Certificate of Commendation from the National Police of Ukraine and Ministry of Internal Affairs from Moscow@binance works collaboratively with law enforcement agencies from all over the world to keep our space #SAFU. pic.twitter.com/4QHja2p8SP
— CZ 🔶 Binance (@cz_binance) June 2, 2021
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Although Russia’s central bank sought a blanket crypt ban, Putin would want to allow space for crypto mining. While Russia may not follow El Salvador in making bitcoin a legal tender, Putin has blessed building a CryptoRuble. As cryptocurrencies threaten their fiat money, many countries are exploring government-issued digital currencies to counter bitcoin. China has created a digital yuan while maintaining a crypto ban.
Although the chances of Putin being the bitcoin creator look slim, the Russian president could find many uses for the crypto, especially amid the sanctions. If one day it turns out that Putin is actually Nakamoto, it would be a stunning end to the mysterious identity of the bitcoin founder.
As a seasoned expert in the field of cryptocurrency and blockchain, it's imperative to approach the claim that Vladimir Putin is behind bitcoin with a critical eye, backed by a comprehensive understanding of the involved concepts. My extensive knowledge in this domain allows me to dissect the article and provide insights based on credible evidence and industry expertise.
Firstly, the article discusses the mystery surrounding Satoshi Nakamoto, the credited creator of bitcoin. While various individuals, including Craig Wright, Elon Musk, and Nick Szabo, have been associated with Nakamoto, the true identity remains unknown. It is crucial to emphasize that claiming Putin as a potential bitcoin founder lacks substantial evidence and contradicts the known background of Nakamoto.
Putin, being the president of Russia for many years, is unlikely to have the time or expertise to develop a complex cryptocurrency like bitcoin. His academic background in law and previous work with the KGB does not align with the skills required in computer programming or cryptography. This analysis is fundamental in debunking the notion that Putin is directly responsible for creating bitcoin.
The article suggests that, given Putin's powers, he could potentially have Russian experts create bitcoin. However, this speculation lacks concrete evidence and relies on conjecture. It is essential to highlight that the true identity of Nakamoto remains a mystery, allowing for such unfounded speculations to persist.
The discussion on Russia's role in bitcoin mining provides a more plausible angle. Russia, being a significant player in the crypto mining sector, benefits from abundant energy resources, making mining operations more profitable. This aligns with Putin's acknowledgment of Russia's advantage in the crypto mining sector due to its vast energy resources. The article appropriately explores the possibility of Russians being behind bitcoin, focusing on the country's substantial investments in crypto.
Putin's stance on bitcoin, as outlined in the article, suggests that he views cryptocurrency mining as advantageous for Russia. The consideration of accepting crypto payments for oil and the development of a CryptoRuble further indicates the strategic importance of cryptocurrencies in Russia's economic landscape. This aligns with global trends where countries are exploring government-issued digital currencies to counter the impact of decentralized cryptocurrencies like bitcoin.
In conclusion, while the article entertains the idea of Putin being the creator of bitcoin, a thorough analysis based on evidence and expertise in cryptocurrency and blockchain dismisses this claim. The focus should be on understanding Russia's role in crypto mining, its potential impact on sanctions, and Putin's strategic approach to cryptocurrency in the geopolitical landscape.
