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Mysterious Bitcoin mining pattern potentially solved after seven years

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Cointelegraph reported last week about the latest findings of Sergio Dermain Lerner, who is known for his discovery of the so-called “Patoshi pattern.” His latest research suggests that Satoshi Nakamoto likely used a single PC to mine approximately 1.1 million Bitcoin (BTC). However, it appears that there was something of even greater importance lost in the excitement about this discovery. If Lerner’s latest findings are accurate, it would put an end to seven years worth of speculation concerning the meaning behind the mysterious pattern.

 

Patoshi pattern. Source: Sergio Darmain Lerner’s blog.

Lerner first wrote about the mysterious Bitcoin mining pattern back in March 2013. Some privacy flaws in the original Bitcoin code allowed him to discover Satoshi’s mining idiosyncrasies. The crux of the pattern arises from the fact that Satoshi’s mining code incremented the ExtraNonce field differently than the default Bitcoin code. A couple of months ago, Lerner also suggested that Satoshi refrained from mining in the first five minutes of the block. This gave rise to growing speculation about the meaning behind this pattern.

Some have suggested that Satoshi was intentionally “marking” their Bitcoins. Others say that this was a way for the Satoshi team to demarcate their portions of the fortune. Some speculate that Satoshi optimized their equipment or code, allowing them to mine faster than anyone else. Yet others believed that the pattern originated from the fact that Satoshi was using around 50 machines for mining. This latter theory may have given Craig Wright the idea to claim that he used a Bitcoin farm in Australia to mine his coins.

The truth, however, appears to be less exciting but more sound. Satoshi was using a multithreaded PC for mining. (Lerner also suggested to us that possibly Satoshi was using a Field-programmable gate array, which would be consistent with Satoshi apparently “pre-inventing” GPU mining and would not affect these conclusions.) In order to avoid redundancy, Satoshi would limit each thread to a distinct, non-overlapping nonce space. During Bitcoin mining, a nonce gets incremented with every unsuccessful attempt to solve a hash puzzle. Thus, the mysterious pattern may not have been created by choice, but rather as a side effect of Satoshi’s unique mining setup. Lerner agreed with this conclusion, potentially allowing us to put the speculation over this theory to rest once and for all.



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Fresh Bitcoin ETF hopes back BTC’s swift rally above $40,000

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Crypto investors are seeing gains in Ether (ETH) and Bitcoin (BTC) today after the successful launch of Ethereum’s London hard fork and a series of new Bitcoin ETF filings resulted in a rally that propelled BTC price 9% higher and Ether gained 11.75% which brings the altcoin closer to the elusive $3,000 level.

Data from Cointelegraph Markets Pro and TradingView shows that after an early morning sell-off that saw BTC price fall to $37,280, bulls stepped in and the ensuing high volume spike sent BTC price to an intraday high at $40,775.

BTC/USDT 4-hour chart. Source: TradingView

Recent comments from the United States Securities and Exchange Commission Chair Gary Gesler about the viability of a Bitcoin ETF were followed by several new ETF applications being filed on Aug. 5 and investors are hopeful that the chance of approval has increased.  

Related: Fed governor says CBDCs remain ‘a solution in search of a problem’

Regarding the current bullish price action, analyst Will Clemente III posted the following chart showing BTC’s past performance and noted that the yellow line “served as resistance to the 2017 dead cat, support in January 2021, and the level that price dropped once broken through in May.”

Top/Bottom models for Bitcoin. Source: Glassnode

Clemente said:

“In my opinion, this would be a key level ($54K & rising) to watch for confirmation/rejection. (2013 vs. 2017 reaction)”

The overall cryptocurrency market cap now stands at $1.662 trillion and Bitcoin’s dominance rate is 45.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.