Most people who I know that think the CIA invented bitcoin, are not very familiar with the pre-history of Bitcoin including work by Back, Szabo, Finney, etc. I'm not saying that certainly no intelligence agency created Bitcoin, but rather, I'm very skeptical of the certainty that many people have around that topic. Because, when you are somewhat familiar with that pre-history and look at it from an engineering perspective, you can clearly see the pieces gradually falling into place. In the1980s there was work by Chaum about how to build a database run by mutually suspicious entities. In the 1990s there was work by Back for proof-of-work. As things moved into the 2000s, there was Szabo's Bit Gold, which is very similar to what Bitcoin ended up being, and Finney's Reusable Proof of Work "RPOW" tokens. Finney hadn't solved the centralization issue, and Szabo hadn't solved the issue of better computation causing supply inflation over time, but they were collectively within shooting range of the solution. Others as well. Meanwhile global bandwidth was getting better, encryption in general was getting better (and there we've got an actual intelligence agency contribution), etc. And then Satoshi added to that work, including the difficulty adjustment in particular and many other details, with a full implementation. Basically, if someone thinks that Bitcoin just kind of magically came out of nowhere, then it's pretty easy to see how they'd be inclined toward a conspiratorial assumption. However, if one sees that, just like any other industry, there was a series of engineers building on each others' work until someone finally got it over the line, then it looks a lot more organic.

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Lyn Alden's avatar Lyn Alden
Most people who I know that think the CIA invented bitcoin, are not very familiar with the pre-history of Bitcoin including work by Back, Szabo, Finney, etc. I'm not saying that certainly no intelligence agency created Bitcoin, but rather, I'm very skeptical of the certainty that many people have around that topic. Because, when you are somewhat familiar with that pre-history and look at it from an engineering perspective, you can clearly see the pieces gradually falling into place. In the1980s there was work by Chaum about how to build a database run by mutually suspicious entities. In the 1990s there was work by Back for proof-of-work. As things moved into the 2000s, there was Szabo's Bit Gold, which is very similar to what Bitcoin ended up being, and Finney's Reusable Proof of Work "RPOW" tokens. Finney hadn't solved the centralization issue, and Szabo hadn't solved the issue of better computation causing supply inflation over time, but they were collectively within shooting range of the solution. Others as well. Meanwhile global bandwidth was getting better, encryption in general was getting better (and there we've got an actual intelligence agency contribution), etc. And then Satoshi added to that work, including the difficulty adjustment in particular and many other details, with a full implementation. Basically, if someone thinks that Bitcoin just kind of magically came out of nowhere, then it's pretty easy to see how they'd be inclined toward a conspiratorial assumption. However, if one sees that, just like any other industry, there was a series of engineers building on each others' work until someone finally got it over the line, then it looks a lot more organic.
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Yes. Exactly this.
Lyn Alden's avatar Lyn Alden
Most people who I know that think the CIA invented bitcoin, are not very familiar with the pre-history of Bitcoin including work by Back, Szabo, Finney, etc. I'm not saying that certainly no intelligence agency created Bitcoin, but rather, I'm very skeptical of the certainty that many people have around that topic. Because, when you are somewhat familiar with that pre-history and look at it from an engineering perspective, you can clearly see the pieces gradually falling into place. In the1980s there was work by Chaum about how to build a database run by mutually suspicious entities. In the 1990s there was work by Back for proof-of-work. As things moved into the 2000s, there was Szabo's Bit Gold, which is very similar to what Bitcoin ended up being, and Finney's Reusable Proof of Work "RPOW" tokens. Finney hadn't solved the centralization issue, and Szabo hadn't solved the issue of better computation causing supply inflation over time, but they were collectively within shooting range of the solution. Others as well. Meanwhile global bandwidth was getting better, encryption in general was getting better (and there we've got an actual intelligence agency contribution), etc. And then Satoshi added to that work, including the difficulty adjustment in particular and many other details, with a full implementation. Basically, if someone thinks that Bitcoin just kind of magically came out of nowhere, then it's pretty easy to see how they'd be inclined toward a conspiratorial assumption. However, if one sees that, just like any other industry, there was a series of engineers building on each others' work until someone finally got it over the line, then it looks a lot more organic.
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🫥 1 year ago
Agreed on both points. I'd be skeptical if they were closed source.
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szarka 1 year ago
I agree with all of this. But I do think the CIA conspiracy theory has a couple of things going for it: (1) US government funding of Tor (it isn't above embracing freedom tech when it serves its purposes) and (2) the NSA's history of involvement in non-classified crypto to steer adoption toward weak ciphers. While I don't seriously think the CIA invented Bitcoin, we *do* need to be aware that three-letter-agencies may be working to subvert it. Bitcoiners need to be whole lot more skeptical when the government decides to "help". I'll leave folks to draw their own conclusions about how that applies to a "strategic bitcoin reserve" and other current foolishness…
CIA is the wrong framing, it's perfectly in No Such Agency's wheelhouse though You don't have to necessarily have believe it has NSA origins, but it's fantasy that nocoiners will exploit when Bitcoiners deny that Satoshi could not be truly anonymous given their capabilities, and that every major agency has influential assets in the ecosystem These are good things, shouldn't shy from them with nocoiners use spooks as an objection. It's actual quite an intuitive part of a multi-prong counter-offensive against globalists that would safely defuse the Triffin Dilemma before natsec is lost forever. Patriots in control.
It's kind of related to your own belief around whether Bitcoin was discovered or invented. If you believe Bitcoin was invented you're more likely to believe it was a CIA invention. Others can see how the actions of many enabled us to discover the digital scarcity known as Bitcoin. We know that even if the CIA had a role in it's discovery, they cannot control it. Bitcoin selectively reveals itself to people when they are ready.
Interesting. Wouldn't that suggest that they either ... know who he was and were able to coerce his keys out of him OR they we're able to compromise his keys, which would undermine the entire point of Bitcoin's security? Genuinely curious.
Learning pre-bitcoin history really helps better understand it. Even in the context of the scams that have followed it. Many people see bitcoin as the first and therefore something that should be replaced. Understanding it stands on tech that came before helps add context. View quoted note →
The name "Satoshi Nakamoto" means in Japanese, paraphrased, "Innovation from a central point of origin". That's where people, I think, get the CIA accusation from. Have you heard of that meaning, Lyn?
I really liked the format. Might need to start looking for other books that get deeper into the opposition early cryptographers faced when attempting to release their research. Sounds like it was pretty brutal.
Lyn, I just read a segment in your ‘Broken Money’ book today on that very subject and I agree. When you look at the timeline of the developments and technologies / how they progressed towards Satoshi’s creation, it’s a pretty compelling argument.
You're missing the point (along with everyone replying to you.) It doesn't matter if it was the CIA, the NSA or just some rando. The whole point of Bitcoin is that you can verify that it works the way it claims to work. Arguing about who created it is pointless.
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John D 1 year ago
Satoshi was a time traveller who went back in time to create bitcoin, so he could rug pull us in the future
It never mattered who created Bitcoin, a transparent protocol of unstoppable speech packets. The smug skeptics and capitulators who think it does matter are not a part of the conversation by any measure
Bitcoin is as glowy as Nostr and even spookier! JK! 🤣🤣🤣 It is just as likely that Nostr came from the spooks. Nostr and Bitcoin are freedom from the spooks. Those agencies do not want any of this to work the way it already does and are actively trying to wreck them or confuse people about them. 😔😔😔
Alot of wild assumptions. Have you seen anything that corroborates that? Most likely, he used a pseudo-name and was cautious about online footprint, which we can assume since he was into cryptography.. Not to mention we are also concluding that that satoshi lived in the western world. We will find out one way or another I suppose. I choose to believe he's watching things unfold from a distance. If his BTC ever moves, we can continue to speculate.
Every time I read your work, I'm deeply inspired by how clearly and passionately you express your thoughts, and it makes me appreciate your perspective even more. 🧡💜
COMMUNITY.
Lyn Alden's avatar Lyn Alden
Most people who I know that think the CIA invented bitcoin, are not very familiar with the pre-history of Bitcoin including work by Back, Szabo, Finney, etc. I'm not saying that certainly no intelligence agency created Bitcoin, but rather, I'm very skeptical of the certainty that many people have around that topic. Because, when you are somewhat familiar with that pre-history and look at it from an engineering perspective, you can clearly see the pieces gradually falling into place. In the1980s there was work by Chaum about how to build a database run by mutually suspicious entities. In the 1990s there was work by Back for proof-of-work. As things moved into the 2000s, there was Szabo's Bit Gold, which is very similar to what Bitcoin ended up being, and Finney's Reusable Proof of Work "RPOW" tokens. Finney hadn't solved the centralization issue, and Szabo hadn't solved the issue of better computation causing supply inflation over time, but they were collectively within shooting range of the solution. Others as well. Meanwhile global bandwidth was getting better, encryption in general was getting better (and there we've got an actual intelligence agency contribution), etc. And then Satoshi added to that work, including the difficulty adjustment in particular and many other details, with a full implementation. Basically, if someone thinks that Bitcoin just kind of magically came out of nowhere, then it's pretty easy to see how they'd be inclined toward a conspiratorial assumption. However, if one sees that, just like any other industry, there was a series of engineers building on each others' work until someone finally got it over the line, then it looks a lot more organic.
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Well the satoshi coins are like the ultimate honey pot though. Normal utxo holders don’t need to worry about a targeted attempt to brute force their keys anywhere near what is surely going on with that one. So if they do ever move, my money would be on that being the reason Personally i’ve always sort of assumed Satoshi is “no longer with us” (based solely off a quote that is always hard to find where he said ~“i don’t have much time left”)
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Frank 1 year ago
Did the CIA invent monero?
no, it tells me that you are prone to imagining evil people have the power they pretend to have if they have him, but no keys, but the evidence is there, they would show it off if they have him, but they have the keys, the coins would have moved if he is dead, and they never found him, neither would happen out of those three options, option 3 is what has actually been made public nothing believing the lies of evil people about their power is the first mistake anyone makes about evil people
it's not that sophisticated opsec to wipe your keys and hard drive when that moron accepted a date with the CIA he disappeared zero chance his drives retained any of the code or data zero chance he retained the keys the very fact that the CIA got interested confirmed that it had "caught on" and it was on fire and that was all he was gonna get away with so he probably took a bus to mexico and that was that plenty of places to get work when you are a C++ server programmer i know what it means to burn keys that are worth something did it twice in my life already so far
Bitcoin is the capstone on 4 *decades* of innovation and experimentation .. and it is the foundation for decades more that we’re already seeing start to emerge: - Liquid - Lightning - eCash - Nostr Ignorance of the history leads also to the fallacy of “version 2 will be better” which the altcoin promoters feed on Fundamentally, and i speak as someone coming from a technical background, the most important aspect to learn is that Bitcoin’s innovation is economic (verifiable absolute digital scarcity), not technical. Then technical innovation is impressive but only in so far as it enables the actual economic innovation 🤝
That’s a fine story, but the nsa would still know who he was regardless. He lived a whole life before bitcoin. He left breadcrumbs behind. His identity is very knowable with the level of data they have on both him and everyone he ever interacted with. Wiping the hard drives is cute when every text or email you’ve ever sent is backed up in an nsa server somewhere.
Great summary, as usual. Reading The Genesis Book really drives home this point.
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BobbyApp 1 year ago
That’s pretty cool that you can read my mind since I just started to go down that rabbit hole. You just saved me countless hours of clicking nefarious links and starting a crazy person wall with clippings and thread
Lyn, you have such an eloquent way to simplify and consolidate such dense topics with logic. Thank you for all you do in our space!
These are some of the speculations that I explore in my book, The Nakamoto Consensus. Did they get him? Did he get away? Did someone help him? it's a Bitcoin adventure textbook, a Trojan horse orange pill.
Accumulative innovation, as happened with others breakthroughs (planes, cars, …). I believe humanity discovered Bitcoin instead of invented. Sooner or later, Bitcoin would emerge. It was inevitable.
You weren't there. You weren't at the BBS You weren't at the IRC channels You weren't even at the forums At that time, only government related people from the west or malware writers literally from Russia had interest in crypto. So was that case with Dave Kleiman. He died worried sick that he'd be exposed, you will never understand that. How it feels to lose your career over something that was basically useless at the time and yet went against your own (gov) employer. Please stop rewriting history. You are becoming religious zealots writing fiction stories, but there are still plenty of us who were indeed there and participated on what happened.
Which moved to Monero years ago. Always sus to see someone promoting bitcoin and equating it with freedom/privacy when it is literally a fedcoin. image
You‘re absolutely right. Reading the Genesis Book from Aaron van Wildrum shows the history and envolvement of the technologies building Bitcoin‘s foundation in a great way. image
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Smiffy 1 year ago
This is how this note looks like when I copy pasta it on Twittex image
belief in the deliberately cultivated aura of omnipotence of government agencies full of people who are selected for their obedience not their talent is stupid i remember not many years later somewhere reading that they were having trouble getting the best people because they drug test applicants your faith in government is showing, you might want to either admit it or perhaps remove it if russian and chinese spies can evade detection by the NSA then so can a smart guy who has been working on privacy technology for a decade satoshi BEING an NSA guy is very possible too, so, yeah, we all know how it goes when they investigate themselves, you have studied social engineering i would hope
Wish it was higher res so I could zoom in and read it all, but it looks interesting the ones I could make out
Plus, I think bitcoin is harder to grasp for people who lack systemic thinking capabilities. Emergence seems alien to them. Maybe the main driver of statism, socialism, centralism or however one calls it. The question “how can there be something from nothing?” haunts these people. So it must be the CIA.
I haven't dug particularly deep into the timelines. But one has to admit that the seemingly permanent disappearance of Satoshi, and the decline of Hal's health and consequent passing are quite a coincidence. That's without all the other coincidences, ethics and alignments.
Miyamoto Musashi Satoshi Nakamoto..... Satoshi flipped the suffix and was heavily influenced by "The Dokkodo" ... "21 precepts of life"/21 million bitcoin (not arbitrary...paid homage) "Dokkodo was largely composed on the occasion of Musashi giving away his possessions in preposition for death"..... Sound familiar ^
Now I wonder... Would the US intelligence apparatus having 1M btc in their coffers be a net benefit to the adoption cycle? If they knew they had the largest stockpile of it ... Would it make them more likely to let things play out? Thinking out loud...
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Fotoart 1 year ago
No one actually invents something... but rather, brings together different ideas into a new one.
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The Epic 1 year ago
Guess I'm going to read the Genesis Book thanks to this note and those who have replied. I suppose I ought to brush up on some history.
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dankswoops 1 year ago
where can I get a high res of this photo?
Correct, knowing a little about the history and early honest attempts to solve for limits on freedom and the encroachment on privacy that motivated exactly the names you mention along with others is the plausible and organic answer. Thank you. I am delighted that you are contributing so regularly to NOSTR. I met some of the devs in Prague in June and I’m trying to learn how to navigate effectively so I can ZAP a few idle SATS for their work.
The intelligence agencies didn’t invent Bitcoin. Most people believing this refer to a paper on electronic currencies from the NSA that predates Bitcoin. However, they certainly have infiltrated its community to some extent with some narratives and assets.
The following is personal opinion and backed by nothing but my personal experience. With respect to modern age/recent tech, the fed does NOT innovate, but the fed often funds those that do innovate. Did Satoshi have a day, paid job and bitcoin was his side project?! Or was bitcoin his day job and funded by "another", be it directly or indirectly. With that said, I don't think it matters bc we can't unlearn what we have all learned bc of bitcoin. #My2Sats
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Tardoc 1 year ago
Hey Lyn, I just want you to know how much I appreciate your writing. I am not a great reader, however, I am able to read your work and be captivated enough to not only comprehend your message but to also be able to assimilate the information in such a way that I can explain it to others days or weeks later.. Thank you.
Whoever invented it doesn't matter, the code is open source and anyone can have a look at it. There are no backdoors
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shadow06 1 year ago
This is a great graphic by the way
Same. I haven't deeply researched the timeline but it feels right.
R's avatar
R 1 year ago
But without the scary CIA boogeyman we might not get to live in fear. 😱