Satoshi-Era Bitcoin Miner Moves $5 Million BTC Earned When the Price Was Just 10 Cents

A Bitcoin wallet containing 50 BTC mined some 15 years ago has suddenly become active, moving coins worth roughly $5 million that were originally valued at just $0.10 each.

Bitcoin historian Pete Rizzo spotted and shared the wallet transaction using a mempool.space screenshot. The wallet movement has since sparked discussions and concerns across the crypto community. Some onlookers have speculated that it could be connected to recently pardoned Silk Road founder Ross Ulbricht.

But attributing old Bitcoin movements to any specific individual who hasn’t voluntarily doxxed their wallet address is very speculative.

“It’s fascinating that it’s so easy to automatically detect these kinds of transactions, gather some simple context, but still will likely never know the complete story,” Reddit user itscashjb observed.

The transaction implemented three important Bitcoin protocol features: SegWit (Segregated Witness) for improved scalability, Taproot for enhanced privacy and smart contract capability, and RBF (Replace-By-Fee) which allows for fee adjustments if needed.

While the transaction used these relatively new features, it also opened the move to community scrutiny.

“No test transaction? Insane.” remarked one user on Reddit, commenting on the holder’s apparent confidence in executing a $5 million movement without first sending a smaller amount to verify the address – a common practice for Bitcoin users.

Quantum risks on the Ancient Bitcoin Supply

An analysis from Messari co-founder Dan Robustus noted that the transaction used a Pay-to-Public-Key (p2pk) output format, prompting his speculation that the transaction was “someone moving quantum-vulnerable funds to safer keys.”

Common in Bitcoin’s early years, addresses formatted with p2pk are susceptible to quantum attacks using algorithms such as Shor’s, which could derive private keys from public data.

In December last year, the debates on quantum computing’s possible capacity to break Bitcoin resurfaced after Google announced its Willow chip.

The movement also sparked discussions about how Bitcoin has changed since it first gained traction in 2009.

During that early period, Bitcoin mining was still possible with regular computer processors, as noted by Reddit user OneSmallStepForLambo: “That is far enough away where the concept of the whitepaper was in practice, ‘one-CPU-one-vote’. Each user of the network was also a miner.”

The controversial transaction represents one of the largest movements of early-mined Bitcoin in recent months, showing a remarkable return on investment from $5 to approximately $5 million over 15 years.

The next steps for these funds remain unclear, though community pundits note that converting such historically Bitcoin to fiat currency without attracting attention would prove challenging.

This transaction adds to a growing pattern of dormant Bitcoin wallets reactivating, though the sophisticated technical implementation for this one sets it apart from typical dormant wallet movements.

The reasons behind such activations often remain mysterious, contributing to Bitcoin’s enigmatic early history.

In 2023, Decrypt covered how some Satoshi-era addresses moved millions worth of BTC, with some being tagged as part of what’s been touted as the ‘Ancient Supply‘ which refers to Bitcoin mined, moved, or purchased at least over 9 years ago.

Edited by Stacy Elliott.