History about how the maker of Litecoin, Charlie Lee, found out about Bitcoin

The Creator of the seventh volume of capitalization of the cryptocurrencies in the world of Litecoin Charlie Lee talked to Laura Shin in the broadcast of her popular podcast. They discussed Bitcoin and how he met cryptosphere. For starters, Lee said on the tenth anniversary of the publication of whitpaper Bitcoin and said that was very involved in activities in Cryptoprotected. He didn’t even notice that flew these years.

“I’m really surprised that so many years have passed. I have the feeling that I only yesterday learned about Bitcoin, although I first read about him back in 2011. Yes… just an amazing ten years.”

He further confessed to how really acquainted with Bitcoin. He read about the coin in the article about Silk Road, the most famous online market where in payment accepted bitcoins. This aroused his interest in the new form of digital currency that is resistant to censorship and is a much more sound form of money than the existing.

What will happen to Bitcoin next?

According to Ambcrypto, he also wished for Bitcoin to achieve its ultimate goal — to become the money we use for everyday payments. According to the Creator of Litecoin, cryptocurrency will soon replace Fiat money.

“Ten years have passed. Bitcoin and cryptocurrencies still act as a speculative asset. And we, as you know, so far only tickled the tip of the iceberg and very little progress in that direction to make them real money.”

Remembering the past, Li told how became interested in bitcoin during the Bitcoin price below $ 30. Then he had a strong feeling that the coin is “undervalued” and it had the potential to revolutionize. That was the trigger, why Do closely was fascinated by cryptosphere.

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Decentralized exchanges would cause “the greatest economic boom in history”

Centralized cryptocurrency exchanges similar to stock exchanges in the stock market, such as Nasdaq, CBOE and NYSE. Such exchanges actually are a Trustee in the process of buying and selling assets. Usually for their services, brokers charge a fee. For many cryptocurrency enthusiasts this is akin to a curse.

On the other hand, decentralized exchange, or DEX not based on the credibility of the mediator. They are independent. Therefore, they conform more to the spirit of cryptocurrency.

When decentralizovanno stock exchange will earn at the full capacity it will be the beginning of the biggest economic boom in human history.

In an interview for BoxMining McAfee stated that most of the centralized exchanges are corrupt, to one degree or another, and they will disappear within five years.

Thus decentralized exchanges will be able to put an end to the “confrontation with governments.”

After all, regardless of power available to the government, it will not be able to stop the activities of these exchanges:

Because I don’t care how much you have power like the government as police and as soldiers. If the exchange will consist of 20 million wallets on smartphones, laptops and tablets, the fact that this can make the government? Nothing. They would have to close all 20 million wallets worldwide.

McAfee believes that centralized exchanges are corrupt. Customers don’t know in which country they operate and who owns the exchange. However, “they process hundreds of millions of dollars every day.” McAfee concludes: “So, of course, they become corrupt.”

Regulations and all the police in the world is useless because we don’t know where actually there are centralized exchanges. But at the same time, McAfee did not lose hope, he believes he can save the situation, the blockchain technology.

The blockchain is the first technology with which you can determine what is true and what is not. CNN broadcasts their truth, Fox News, the Russians, and the Chinese – another version. And that this is indeed true – no one knows. It is important to remember that truth and regulation cannot co-exist.

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History is the best teacher: That miss those who do not believe in cryptocurrency

The author of the article Chris Douthit analyst, entrepreneur and head CryptoInvestingInsider.com. Chris had a great analogy between the epoch of the rise of John D. Rockefeller and the period of adoption of the cryptocurrency.

Someone once told me that to repeat the same thing over and over again, expecting a different result, is madness. But what about those who repeatedly misses opportunities?

This story began back in 1863 when it was built the first railroad between the rich oil-producing region of Pennsylvania and refineries in Cleveland. More than a hundred miles separated the two cities, and why Cleveland was in a worse position than Pittsburgh or Baltimore. However, the key benefits of Cleveland was is the low cost of land and resources.

That’s why John D. Rockefeller and his business partner, Maurice Clark, decided to invest in the Cleveland refining industry, assuming that you can play on the price difference compared to other oil regions. Low production costs have enabled Rockefeller to gain an advantage over other enterprises in the country and continuously improve and develop their company.

The relationship between the two partners remained good until 1865, until one day between the Rockefeller and Clark did not have any disagreements about debt. Rockefeller at the time was only 26 years old, but he was able to negotiate with Clark and to buy his share in the company 72 $ 500, which was much higher than the actual market value. The absence of Clark’s patience and vision that led to his retirement from the oil industry, cost him more than he could imagine.

Over the next five years Rockefeller brought the art of refining to a whole new level, producing 1,500 barrels a day, which is more than most competitors could produce for the week, and even at a much lower price. Subsequently, the company will be renamed Rockefeller in Standard Oil Company of Ohio and will be the largest Corporation that ever existed.

Maybe Clark was happy with my deal, but fabulous wealth, which he lost due to a too early exit from the industry, has become one of the biggest financial mistakes in American history. Most people probably never even heard of Maurice Clark, while the story of John D. Rockefeller taught in every business school in America.

Cryptocurrency

There are an infinite number of so-called “experts” have their own opinions on the matter. Their recommendations range from the futility of crypto-currencies before the award of the title of a revolutionary tool that will lead society in a fair and bright future.

Charlie Munger, one of the best financial minds of our time, has called Bitcoin “useless artificial gold”.

Warren Buffett in a fit of hatred to Bitcoins, said:

“Buying assets that do not produce anything, you can count only on what will come people who will pay more, because I am sure that it will be followed by other investors”

Is Buffett doesn’t understand technology and that can make the blockchain?

It reminds me of the old refineries, the owners of which could not see the future only because I don’t understand how technology and a more ambitious approach to legacy mode of production is able to enrich them.

No one knows for sure what will happen in the coming years, but history is one of the best tools to predict the future.

Things tend to change, new and better ways to achieve our production goals are being developed everywhere. It is through the development and commitment to the changes we are where we are today. Some people are able to recognize and take advantage of the changes, while others allow opportunities to pass them.

John D. Rockefeller was a young thinker, he broke the old ways of doing things in the oil business, which allowed him to become the richest person in history, who took control of 90% of oil in the United States. In today’s numbers, his condition would have amounted to 367 billion dollars.

Henry Ford founded the Food Motor Company, the company has revolutionized the automotive industry. At that time, many believed that a car is a luxury available only to the wealthy and just don’t believe what you did in the Ford. But over a period of 17 years (1903-1920), Henry Ford sold over a million cars, which made him and his investors of the company fabulously wealthy. The era of horse riding tours came to an end, and investors who believed in the idea of a Ford, get rich. Not surprisingly, in today’s dollars the condition of Ford at the time of death was estimated at more than 200 billion

The Internet boom of the 90 years also gave rise to several billionaires. I remember conversations about whether the Internet is just a fad or is it here to stay. Most people simply did not know what to do, and decided not to take the risk to invest.

Technological revolutions don’t happen overnight, it took years. Bill gates didn’t miss their chance to take advantage of the situation, and in 1999, his fortune exceeded 101 billion (144 billion at current prices).

It’s hard not to draw Parallels with the cryptocurrency — it all comes down to innovation and adoption, both of these factors are rapidly evolving in this industry.

If you think you are already late with the investment, think again. Of the 7.6 billion people on the planet, only 25 million have a bitcoin wallet. This means that currently only 0.3% of the population owns bitcoins. We are only at the beginning.

When it comes to technology, the situation can change quickly, and in five years the world will look completely different. You can stand on the sidelines and watch or jump on the train and to prepare for the trip.

Think of the Maurice Clark, who just waited for change.

Changes occur again, they are happening right now. Of course, this does not mean that you can just buy any bitcoin and get rich. The greater part of the cryptocurrency is destined to disappear, so creating the right diversified basket is still the key to success.

You have to ask yourself who you want to be in 10 years — a man who gave up too early and all sold (or not owned at all) or a person who was strong enough to withstand the storm, a man who used one of the rare opportunities that life gives us?

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BitMEX has registered the largest candle in the entire history of crypto-currencies — $ 2 billion

Bitcoin exchange BitMEX recorded the largest candle in the history of cryptocurrency. 2 billion in Bitcoin was traded in for four hours on 17 July 2018.

Occurring first publicly noted in a tweet, the user Broccolex, a self-proclaimed analyst of the blockchain:

From 16:00 to 20:00 GMT, BitMEX has observed a giant outburst, which amounted to more than 80% of all day trades of Bitcoin ($ BTC to 5.84 billion). Such a fierce bullish run to push the price of Bitcoin more than 8%, and the leading cryptocurrency has broken the mark of $ 7,000.

Some users doubt the veracity of this volume. In comments to the tweet Broccolex, one of the traders wrote about the need for “the termination by the exchange to the swelling volume.”

The fact that trading volume is one of the most important indicators for exchange, testifying to its relevance and financial success.

When it comes to pay-exchangers (charge a Commission), the incentive to manipulate the volumes obvious. For example, the Commission Huobi 0.2%, more than double Binance, but the daily income is about 30% lower.

However, the blame BitMEX in interest-free manipulation of the trading volumes is a bit more complicated. Daily trading volume on this exchange is two times higher than in Binance. Technically, it is the world’s largest cryptocurrency platform, but, most importantly, BitMEX does not charge a fee for the transaction.

In a study published in March 2018, trader and investor Sylvain Ribs accused of manipulation in excess of $ 3 billion in exchanges such as OKEx, Huobi, HitBTC and even many of your favorite Binance. BitMEX in the report of the missing Ribs.

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The history of the formation of the Empire: How Bitmain won the “arms race” from Nvidia and AMD and challenged even Google

Jihan Wu and Zhang Mikri little known to the General public and try to avoid contact with journalists. Meanwhile, these young Chinese experts believe not just the very rich miners, and “grey cardinals” of the industry, is able to concentrate the power within the mysterious Bitmain Technologies Limited is a registered Hong Kong Corporation, the main shareholder of which is the trust in the Cayman Islands.

Evaluation research firm Bernstein in 2017 Bitmain got a huge profit (from $ 3 billion to $ 4 billion) from sales of ASIC devices for mining, and from mining on their “asiko” bitcoins. The company strengthened so that it threatens to throw off the cryptocurrency market graphics card manufacturers Nvidia and AMD and to upstage Google in the development of artificial intelligence.

The lack of a large amount of information about Jihan Wu and Zhang the Micra has spawned many rumors. Even suggested that phenomenal business breakthrough Bitmain carry out Chinese technology tycoons who do not want to advertise their relationship with the criminal cryptocurrency market, so as not to get hit by the regulators. In support of Bitmain, in particular, I suspect the “Chinese Steve jobs” lei Jun, the founder of the company producing mobile devices Xiaomi. According to another version, the all-powerful Chinese Communist party is pouring money into Bitmain to set the path for the development of major cryptocurrencies and manipulate their courses.

As confirmation of these theories no, read the success story of Bitmain in the beautiful and inspiring of the wrapper in which it is presented Cihan Mikri Wu and Zhang.

The Union of a bitcoin Evangelist and a technology guru

Fateful meeting the future founder Bitmain happened in 2010. At the time of Mikri Zhang, a graduate of the Chinese Academy of Sciences, the designer of chips that developed the console to output the television broadcasts on the computer screen and was looking for money for your startup DivaIP. One of his subordinates Mikri Zhang on the streets of Beijing agitated passers-by to buy consoles DivaIP and attracted the attention of 24-year-old Jihan Wu, passing by.

Jihan Wu at that time worked as a financial analyst in the private investment Fund and had a degree in Economics and psychologist from the Beijing University, the most prestigious Chinese University. He came to Mikri Zhang to advise him on how to attract investment in DivaIP.

Shortly before this meeting, Jihan Wu discovered Bitcoin, became very manifest its Creator Satoshi Nakamoto and was the first who translated the document into Chinese. Although to enter into financial transactions with Mikri Zhang he failed, communication with the developer of computer consoles brought more valuable the result, the idea of creating specialized chips for mining bitcoins.

Jihan Wu emptied your Bank account to all the money to buy bitcoins, which cost at that time about a dollar per coin, and created a news site 8btc.com with which you have been interacting with bitcoin community in China.

“I spent all that I managed to accumulate in life to buy bitcoins in 2011, says Jihan Wu. — Most people believed their excessive risk or fraud. However, two years later, there has been an explosive increase in value of Bitcoin from about $ 20 in early 2013 to $ 900 in late 2013. In the process of that growth it has attracted worldwide attention. And I clearly realized that they can earn, not just trading bitcoins and mining them. At that time the miners had 25 bitcoins every 10 minutes.”

Realizing that made in 2011, the investment in bitcoins has turned into capital to start mining industries, Jihan Wu began to search for specialists. The first thing he remembered about the Mikri Zhang and sent him an email in which he described what he knew about Bitcoin.

“After receiving the letter, I spent two hours to read all about Bitcoin on Wikipedia — says Mikri Zhang. — I realized that this is a promising thing, and decided to enter in this business without delay.”

Expanding the market horizontally

The first task assigned to Mikri Zhang was the development of specialized chips to perform the hash algorithm SHA-256 cryptographic calculations used in Bitcoin structure.

“At first, it was very difficult for Mikri — says Jihan Wu. — He complained that it is impossible to create ASIC for Bitcoin. But in the end Zhang coped with this task and completed it with record speed: from idea to final product it took only six months. The time was a critical factor, because the price of Bitcoin eerily hesitated, and Bitmain could not miss the once in a lifetime chance to make a profit on the uptrend. In addition, the market of “Asimov” already mastered several startups, which brought together start-up capital through crowdfunding”.

The first was developed by Zhang for the installation of Bitcoin mining — Antminer S1 start in November 2013, when Bitcoin was near its peak of $ 1200. Bitmain immediately started active sale of their devices that were sold out by professional miners like hotcakes. This is not surprising: modules Antminer has cheaper personal computers, consume less energy and mining bitcoins about 50 times more efficient.

The appearance of the device Antminer caused the exit of Bitcoin enthusiasts, cryptocurrency miniusa on a PC. At the same time the smell of money attracted large sharks — niche production “Asimov” ready to take giants Samsung, TSMC, GlobalFoundries and even Intel.

However, almost all potential competitors Bitmain were not flexible and sensitive to falling prices. When in 2014, Bitcoin prices dropped, and the demand for “ashiki” has decreased, many companies have concluded that it is better to have a “bird in the hand” and upload your production that brings even a low but steady income.

Bitmain preferred to be sensitive to profit — every six months, the company presented improved models Antminer announcing competing products obsolete. In the end, the Bitmain chips attached to the system, Bitcoin, has taken over 70% of its processing power.

The development in the vertical direction

The specificity of the products Bitmain is such that it can not wait for buyers at the warehouses, and to generate money. In may 2014, Bitmain organized in China mining pool AntPool, which in a matter of months became the largest in the world. To date, the computational power of AntPool reached 3,600 peaches/h (1 peaches = 1 million billion gahahaha), and its share in 2017 accounted for 18% of the blocks generated in the system of Bitcoin.

Bitmain recognizes that actively building a mining farm in a few countries, including Switzerland and Canada, but their true hash rate she’s hiding. In the opinion of analysts, the company could make its first pool AntPool a big “elephant”, against which all other unions of miners of bitcoins would seem to be small fry. So as not to scare this market, Bitmain in September 2016 organized a pool under a different name BTC.com generating now about 25% of the blocks. Rumor has it that she has shares in several large pools, including ViaBTC, GBMiners, CANOE.

An important stage of vertical development Bitmain was the market launch of cloud mining. In September 2014, Bitmain bought cloud service Hashnest.com and turned it into the largest exchange on which Internet users can in real time buy-sell compute capacity and receive a portion of the generated capacity of these bitcoins. Through this cloud Bitmain leases “ashiki” their farms and attracted the investment from a “virtual” miners, not risking to buy real equipment.

The invasion of ecosystems altcoins

Almost immediately after the conquest of the hash algorithm SHA-256, the underlying “digital gold”, Bitmain announced readiness to produce equipment for the production of the “digital silver” Litecoin. At the end of 2004, the company said it created the “asik” Antminer L1 for performance similar to SHA-256 algorithm, Scrypt.

However, the rate of Litecoin has long remained near the low of $ 3, and Bitmain for more than two years was postponed the start of sales of their devices. When in early 2017 Litecoin began his rise to around $ 200, Bitmain finally released improved model Antminer L3. The demand was so high that buy these “ashiki” are only those who designed the pre-orders.

In the second half of 2017 there has been a rapid increase in the price of a whole new bundles of cryptocurrencies, led by the ether, and Bitmain started to recruit talents for the development of new types of “Asimov”. Engineers leading several technology companies of Taiwan “shadow Corporation” offered a generous remuneration for the transition to its state.

In January 2018 under the negative buzz from critics Bitmain has announced that it is preparing to release “ashiki” A3 2b Blake Antminer for mining SiaCoin — tokens promising platforms for data storage Sia. The indignation of the developers SiaCoin turned into a long post filled with anger against the “aggressor” dire predictions and desperate calls for miners to buy equipment from Bitmain.

Striking fear into miners, Bitmain is sending rays of hope to gamers who suffer, from lack of cards. In February there were rumors that the Corporation is developing a “killer” of mining on gaming graphics cards — Antminer F3 for the extraction of the ether, using the encryption algorithm Ethash.

The Project Sophon

In September 2017 Bitmain announced it has raised from several venture capital firms $ 50 million to develop chips for artificial intelligence (AI). The desire to engage in the production of chips to run AI algorithms founders Bitmain explained that at Mikri Zhang had an Epiphany after reading a sci-Fi novel “three-body Problem” by Chinese writer Liu Casina.

Then skeptics have expressed doubt that the mining giant is seriously going to wrap up in such a serious and far from cryptocurrency sphere where it will have to compete with Google. Analysts had expected the company exploits the theme of artificial intelligence to increase your credibility in the eyes of customers.

However, in November Bitmain has launched a website platform Sophon for their developments in the field of AI and has presented at once three of the actual product for deep learning — tensor processor BM1680 accelerating map SC1 and SS1 server for analyzing video and images. Soon to this set were added like the rabbit robot Luo Xiaodou, able to make children riddles, to teach, to entertain, to play music and report the news.

The implementation of ideas in the field of artificial intelligence deals with the Israeli team in the engineering and technological center of Israel Bitmaintech. The head of the center Gadi Glikberg argues that the development of a Sophon will improve surveillance systems, Autonomous vehicles, Internet of things and more.

On the website Sophon large font marked the high company’s goal: “to add up all the puzzles in the Universe. To enrich human understanding and knowledge about everything,” and defined an ambitious mission – “to transfer humanity from the information age into the intelligent age.” For this transition, according to Bitmain, you will need the “engine” – a huge computing power, and “fuel” – huge amounts of data. To the intellectual era has come faster processing of data should be accelerated and to accelerate Bitmain knows no equal.

“We started with the development of the “Asimov” for cryptocurrencies, with production of mining equipment and the organization of the mining pools. Bitmain has achieved in these areas of extraordinary success without any external support. And now it’s time for us to enter the market of artificial intelligence”

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Birthday Satoshi Nakamoto coincides with two important events in U.S. history: the obvious connection

April 5, 2018 – the date that bitcoin enthusiasts will remember as the birthday of the Creator of “cryptocurrency number 1” Satoshi Nakamoto. This day coincides with two rather important events in U.S. history.

The identity of Satoshi Nakamoto is shrouded in mystery. The only thing we know about him is information from his page on the website P2P Foundation, according to which yesterday, April 5, he was 43 years old.

In order to register for an account on the P2P Foundation website, you need to specify your date of birth. On page Satoshi Nakamoto this information is not public, but people around the world watched his account’s every day to know when to change his age. The result found out that Satoshi Nakamoto was born on 5 April 1975. This date brings together two important moments in American history.

April 5, 1933, President Franklin Roosevelt issued an order that the possession of gold in the country will be “outside the law”. This meant the actual confiscation from the population and associations of gold,

in bullion and coins. This measure was designed to cope with the effects of the great depression. According to the Decree No. 6102 all U.S. citizens were required before may 1, 1933 in banks to exchange gold for paper money at a price of $ 20.66 per ounce. This, in 1934, followed by the law on the gold reserve of 1934, involving the confiscation of gold from banks. And only in 1975, the Americans returned the right to own gold.

There is a likelihood that on April 5, 1975 — not a real birthday Satoshi Nakamoto. But I think the Creator of Bitcoin has strengthened its intentions with crypto-currencies, choosing such a significant occasion. Indeed, many in the cryptocurrency community compares bitcoin with gold.

The fact that birthday on page Satoshi Nakamoto reflects two important dates, is not accidental. Supporters of Bitcoin believe that people have the opportunity to have a currency that is not under any centralized control, and thus largely protected against interference from the government.

However, the recent strict measures of China against cryptocurrency exchanges and serious restrictions and bans worldwide indicates that governments still exercise significant control over individual finances and can, if they wish to close access to crypto exchanges, mining and trading.

Embodied vision Satoshi Nakamoto in life — we have yet to see.

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