Australian entrepreneur Craig Wright has publicly identified himself as Bitcoin creator Satoshi Nakamoto.

People still have their doubts, but the evidence does appear to support that this is the guy.

What does it mean for the future of Bitcoin itself? Well, there are some fundamental flaws with the design of Bitcoin such as the fact that there is a maximum amount that is allowed to be created. Ever.

This flaw comes from the belief that money should be based on a limited resource, which money is based on. But the “limited resource” is not something like gold, but rather the size of the workforce and the amount of goods and services that that workforce can create at full-employment. Since the number of people capable of working is always increasing, the amount of money in circulation needs to be able to increase accordingly.

Bitcoin, in its current form, doesn’t allow for this. It maxes out at an arbitrarily chosen amount. What would happen if one person were able to hoard almost all of the Bitcoins? The rest of the world would be scrambling to get their hands on the few remaining Bitcoins! In the real world, the government just creates new money to put into circulation to keep people employed and the economy flowing. Although the United States targets to keep its population at 6% unemployment to make corporations happy, but that’s a whole other story.

Now that the creator of Bitcoin has perhaps been unmasked, this design flaw can now be addressed and hopefully fixed. Otherwise, Bitcoin will fail, just as the concept of money being based on gold also failed.

Source: Craig Wright revealed as Bitcoin creator Satoshi Nakamoto – BBC News