Satoshi Nakamoto, who is Bitcoin’s creator, is said to hold a substantial sum of Bitcoin, far beyond what is typically safe for a distributed currency to carry. Although it’s an unlikely case, there is always the possibility that if Nakamoto had the inkling, he could flood the market with a million coins and ruin its value.
Nakamoto's 1,000,000 Bitcoins amount to five percent of the whole cryptocurrency.
That is millions, as in millions of Bitcoins as it has been reasonably estimated that Nakamoto could own over one mln coins.
If Satoshi were to dump one million bitcoins, it is not only the price effect we have to worry about but what I'll call the 'faith' effect: after all, if the creator appears to lose confidence in bitcoin then what are the rest of us to believe?" Glaros said. Bitcoin companies would become insolvent, he suggested, and the market would take a long time to recover – if it were to recover at all.
"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.
Bitcoin is a high-risk investment and should be a small part of a well-diversified portfolio." Or, in other words, don't invest more than you can afford to lose.
