“But that’s due to the history of wars, right? That is why the US has military bases in some countries around the world.”
“In part. But also because those countries don’t want to anger the most powerful nation on earth.”
He could see her thinking. She narrowed her eyebrows and said, “So how will bitcoin change the status quo? Do you hope that the widespread adoption of bitcoin will crash America’s economy?”
“Not at all. I love America. I hope that it continues to flourish. But I hope that the adoption of bitcoin, if it indeed continues, will eventually create a balance of power that can’t exist today. As long as people must rely on governments to print money and influence the value of global currency, there will not be balance.”
“I see.”
He smiled. “It is complicated. But there is another important reason why something like bitcoin is so helpful to the common person. Our world is racing into a digital future. How often do you pay for things in cash today?”
“Not very often. I usually use a credit card or a debit card.”
“In first world countries, that is becoming the normal way to buy things. Let me ask you another question. Every time you make an online transaction, where does that money go?”
She said, “You mean if I buy an article of clothing or something like that online?”
“Yes. Where does your money go when you click purchase?”
She made a face like the answer was obvious. “To the clothing store.”
“Some of that money, yes. But some of that money will go to the credit card company. Some of that money will go to the bank that issued you the credit card. Some will go to the acquirers — the middlemen that pass batch information along so that merchants can complete transactions. And some of your money will go to the account providers — more middlemen. These middlemen manage the processing of the credit card. Your money will be sliced up and every one of these people will get a cut. That doesn’t even include the payment gateway — the online portal that facilitates your website’s shopping cart.”
She looked surprised. “I didn’t realize there were so many hands involved.”
He nodded. “Instead of just paying one or two parties to facilitate your transaction, you are paying many. So everything costs you more. It leaves you with less money. A lot less, if you pay like this all the time. But bitcoin eliminates much of this. The software makes it possible to send cash payments without all of the middlemen.”
“But if merchants want to use it, won’t they need a third party to facilitate the transaction?”
“Yes. But at a fraction of the cost. So the consumer and the merchant can both keep more of their money. And you know what the best part is?”
“What?”
“It’s anonymous. Bitcoin transactions do not require any personal information. And what does that mean?”
She nodded. “No taxes. This was going to be my next question. How would a government tax or regulate it?”
He shook his head. “They will have a very hard time doing so. The system is designed so that all transactions are anonymous. No taxes. It truly levels the playing field. There are countless other great potential uses for bitcoin, such as microlending, but I could go on talking about it all day. I will let you ask your questions.”
The reporter opened up her notebook and read. She said, “In 2008, someone wrote a paper describing how bitcoin worked. They published under the name Nakamoto Satoshi. No one knows whether Nakamoto was really one person or many. He began to collaborate remotely with software developers for the next two years.”
He said nothing.
She continued reading, “Recently, he has indicated that he intends to hand over control of the source code and other important information to several prominent members of a now-loyal bitcoin community.”
The man smiled and placed the tips of his fingers together.
She read on. “Nakamoto Satoshi created the world’s first widely used digital currency. Over the past few years, dozens of potential Nakamoto Satoshis have been ‘outed’ by the press. One was a legal scholar and cryptographer from the United States. Another was a Japanese-American physicist and systems engineer. One news source claimed that Satoshi was actually a group of prodigious computer programmers from several different nations.”
The man smiled.
She said, “Could you please state the name that you use on the bitcoin message boards, for the record?”
The man crossed his legs and sat back in his chair. “Satoshi Nakamoto.”
“Is that your real name?”
“No. But that is the name that the world has come to know me by.”
The woman pressed the red button. “Thank you, Satoshi. Let’s take a quick break.” She reached inside her purse and pulled out a mobile phone.
“Of course,” he said. “Do you mind if I ask where you were born, if not in the United States?”
“China.”
“Oh, where?”
She said, “The south. Guangdong Province. But I haven’t been there in many years.” She was typing something into her phone. Then she placed it back into her purse.
Her demeanor had changed. The bright, friendly look of a reporter was gone. He had been at ease with her tone and her charming smile. She leaned a bit farther forward in her seat. Now she seemed to be dissecting him with her eyes.
“A few more questions. Off the record.”
He eyed her. “Go ahead.”
“Tell me, what would happen if a single nation were able to control the supply of bitcoins?”
He frowned. “That is impossible. First of all, that would negate any incentive to use bitcoins. If a country could control it, why would anyone use it?”
“What if the people didn’t know?”
“No. That is not how bitcoin works.” He sighed. Hadn’t she been listening?
“Why not?”
“There are already many systems for digital transactions. PayPal. Countless others. Bitcoin is not just about convenience. It is a means for the common person — for every person — to cast off the bonds of the banks and the regulators. Think of it like this. A Greek baker could accept payment in bitcoins. Or he could simply place all of his holdings in bitcoins. If his national economy was destroyed by inflation, he would not feel the pain.”
“Sure, alright. But hypothetically, let’s pretend that the value of bitcoin is controlled by a single regulator, yet the users are not aware. Would that be possible? Would one entity be able to regulate supply?”
“No. Every member of the bitcoin community can see all transactional data.”
“And that can’t be reprogrammed? Hacked? Surely a man of your talent could make it look like there was a certain supply and artificially change the value. Or perhaps someone could skim tiny bits of each person’s holdings and eliminate any trace of that occurring?”
He shook his head furiously. “NO. That is not possible. I have the code written in a way that—”
“But what if we changed the code?”
He was exasperated. Some people just didn’t understand, or weren’t capable. He said, “I’m sorry, I am so forgetful. Could you please tell me your name again?”
“My name is Lena Chou.”
“Lena, I can assure you that the way this code is written, those things could not occur. And soon I will be sending out the source code to trusted programmers around the globe. Just as you said, I am ready to be finished with this stage. Bitcoin is ready to be released to the world. There will be many eyes on the gears of this machine. It will not be possible to tamper with, I promise you.”