Recently the Crypto side of Twitter exploded with #WeAreAllHodlonaut and #CraigWrightIsAFraud hashtags. Popular Crypto Twitter influencers started changing their profile pics and Twitter names to Hodlonaut. At the moment, CT is looking like one person is posting everything.
How it all started?
While there isn’t one exact moment from which all this escalated, much rather, those are series of events that lead to this. @Hodlonaut has been very active on despising the legitimacy of Craig Wright’s claims of being the real Satoshi Nakamoto. He started the hashtag movement #CraigWrightIsAFraud and was very active on Twitter in spreading this. Also, Hodlonaut is the creator of the Lightning Torch which spread all around the world. With the help of his idea, Lightning Network Trust Chain has been around 56 countries in 83 days. Overall 293 passers of the Lightning Torch. Thanks to Hodlonaut, many users saw the opportunities what LN can offer.
Apparently, Craig Wright got really offended by this and started to threaten Hodlonaut for legal actions. He sent a legal letter to Hodlonaut asking for an apology or else he will sue him.
The letter consists of Wrights lawyers advising Hodlonaut to remove all the #CraigWrightIsAFraud tweets and apologize to him. Moreover, Wrights lawyers state that this hashtag movement has caused “serious harm to Wright”. While Hodlonaut has removed everything, even his profile from Twitter, Wright still insists on an apology. They even have pre-written the apology for him and it goes:
“I was wrong to allege Craig Wright fraudulently claimed to be Satoshi. I accept he is Satoshi. [I am] sorry Dr. Wright. I will not repeat this libel.”
Later, Coingeek.com, which’s owner is Calvin Ayre and also a close friend to Craig Wright did a very biased article in which they basically explain everything mentioned in the legal letter. However, the article also offers $5,000 worth of BSV to the one who can identify Hodlonaut from his pictures. Hodlonaut has never shown his face in any of his photos. However, there are a few arm tattoos that are visible. Basically, this and the fact that he is from Norway, Oslo, are the only leads.
Not only Hodlonaut, but all other Crypto Twitter users who shared the same hashtag are threatened by Calvin Ayre and Craig Wright.
A massive movement erupted
In order to help Hodlonaut and the work that he has done in the crypto environment, many popular and not so popular Twitter people stated to show support for Hodlonaut by changing their Twitter name and profile picture to Hodlonaut’s. That basically is a cat in a space suit. So if you are following all the main Bitcoin supporters, your Twitter feed looks like it’s all coming from one person. Popular crypto supporters such as Pierre Rochard, Francis Pouliot, Giacomo Zucco, The Crypto Dog and many more have done this in order to raise awareness of this situation.
Even the popular Lightning Network “graffiti wall” satoshis.place now is full of hodlonaut’s avatars and photos of Craig Wright.
CZ of Binance steps in.
Possibly the last drop in this hoax was when the CEO of Binance, Changpeng Zhao, tweeted:
This tweet caused a storm of appreciations and condemnations. First of all, many users showed respect to CZ for taking up this issue and showing a clear view of it, by stating that Craig is not Satoshi. Second, users started to doubt whether this was a good move from the CEO of the worlds largest cryptocurrency trading platform. The main concern is that, if he can do this to BSV, then this means, he can do this for any cryptocurrency on Binance. Talk about centralization.
But when speaking about a united crypto space – it almost feels like there are no BSV supporters on Twitter, or just the Bitcoin camp is massively taking over so that the BSV content just simply isn’t visible anymore. No offense to anybody, but from our Twitter feed, it looks like Calvin and Craig are two against the whole Bitcoin camp. Moreover, Bitcoin Magazine also has stepped in the party:
This article is updated on February 18th, 2019, regards the latest news on Craig Steven Wright
Ten years ago the Bitcoin white-paper, also called as “Bitcoin: A Peer-to-Peer Electronic Cash System” was first published. It was posted by an anonymous pseudonym Satoshi Nakamoto on October 31st, 2008. To this day people are still exchanging opinions on what, who or they are. Some speculate that he could be Japanese because of the Japanese-like pseudonym. Some say that he might be British because of his perfect English writing style in his posts. Also, people believe that it might be a group of people rather than just one. Nevertheless, there have been multiple people claiming that they are the real Satoshi Nakamoto, but could never back the claim. Also, many journalists have tried to find out who the mysterious creator of Bitcoin is, but all evidence is circumstantial.
There are multiple rumors who he, they or it might be, but people have speculated and investigated a lot over the mysterious Bitcoin creator. However, there are a few stories which stand out.
Who is Satoshi Nakamoto?
Craig Steven Wright
He is an Australian computer scientist and entrepreneur. In 2015 Wright publicly announced that he is the real Satoshi Nakamoto. That raised a lot of attention and subsequently his house got raided by the Australian Federal Police. After the raid, they stated that the “matter is unrelated to recent media reporting regarding the digital currency Bitcoin.”
Next, he eventually deleted his internet personality. About a year later, on May 2016, he announced on Twitter that he is indeed the real Satoshi Nakamoto and he has proof to back his allegation. The crypto crowd was so skeptical about such a statement that Wright eventually stepped back and said that he “didn’t have the courage” to reveal his identity.
An oath to testify that he created Bitcoin
Now, after some time, he is willing to testify under oath, again saying that he is the real Satoshi Nakamoto. In the statement below, he says that: “The amount of misunderstanding and fallacious information that has been propagated concerning bitcoin and any derivative system based on a blockchain (such as and including Ethereum) has resulted in my choice to start to become more public. The system I created was designed in part to end fraud as best as that can be done with any technology.”
This comes after a medium post by himself, where he explains the history behind the idea of Bitcoin. He dismisses Wikileaks and Ross Ulbricht, saying that they are criminals and, most importantly, he says that Bitcoin was never intended to be an anonymous money-transfer system. “Bitcoin was not designed as an anarchist system. It was designed to allow trade and commerce, but in the limits of the law,” he claims in his blog post.
Wikileaks fights back
Wikileaks later fired shots back at Craig S. Wright in Twitter providing a snapshot of proof that Craig Wright had altered his old 2008 blog post “to make it seem like he was working on cryptocurrency in 2008”:
On the other hand, Gavin Andresen, a chief scientist at the Bitcoin Foundation, says that Craig Wright provided cryptographic proof to only him on a brand new laptop. He demonstrated, with a private key, how he can access the very first bitcoin block. “I think that he is Satoshi,” he says in an interview back in 2016.
Proof or not?
On one side, yes ,of course, he provided proof, and it would be foolish to provide the actual key to the wider public, because of security measures. But on the other side, that’s only Gavin. That’s only one person. For as far as anybody knows, they could be in an agreement. But again – why? During the Consensus 2016 conference, Gavin Andresen was a part of panel discussion along with Vitalik Buterin. Gavin again said what he had said before, that Craig provided cryptographic proof on a laptop, that he can access the very first Bitcoin block and so on. At this point, just because he repeats it so many times, it almost seems like a made up sentence.
But then Vitalik stepped in to quickly address his thoughts on the subject:
Twitter on fire
However, the disbelief among crypto-enthusiasts again hits high, as many tweeters share their take on this.
They even share ridiculous conspiracy theories:
To tell the truth, there is so much controversy on this subject and so many sides to take. It is fair that people are confused, and don’t know who to believe. But the fact that Craig S. Wright has claimed this multiple times, can be seen in different perspectives. Bitcoin now is fully a decentralized medium and now it does not matter who created it, or for what purpose was it created. It is building it’s own future now, and the fact that Craig is or is not Satoshi, won’t change anything. But the last sentences in his blog post, most certainly does not seem like something that Satoshi would ever say: “Bitcoin started because of my ideas. It was my design, and it is my creation.
And, making certain that it cannot be subverted by criminals is and remains my duty. I was Satoshi.”
Dorian Prentice Satoshi Nakamoto
This man is a Japanese American living in California. Dorian is a physicist who, basically all his life, worked on classified projects for the U.S. Military and various significant companies. On his free time, he likes to collect train models from Britain and program. In a news article from 2014, by Newsweek, a reporter tracked down Dorian S. Nakamoto and engaged in a thrilling story which sounds staggering.
“The day I arrived at his modest, single-family home in southern California… at one point he did peer out, cracking open the door screen and making eye contact briefly. Then he shut it. That was the only time I saw him without police officers in attendance,” writes Leah McGrath Goodman in her intriguing article. His brother describes him as a very smart, intelligent, but “very focused and eclectic in his way of thinking.” His family says that for most of his life, he was preoccupied with money and secrecy – the two things Bitcoin is known for.
In his life, there are a few moments where you can draw parallels with the information known about Satoshi Nakamoto. For example, during 2011, Satoshi Nakamoto disappeared, after his partner Gaven Andersen told him that he had accepted an invitation to speak with the CIA (Central Intelligence Agency). That coincides with health issues suffered by Dorian S. Nakamoto. He was dealing with prostate cancer, and at that time he had had a stroke, explains his wife.
“He’ll deny everything”
Possibly the most exciting and intriguing quote from the article is when Leah contacted Dorians’ younger brother Arthur Nakamoto. During a phone conversation, he said: “He’s a brilliant man. I’m just a humble engineer. He’s very focused and eclectic in his way of thinking. Smart, intelligent, mathematics, engineering, computers. You name it, he can do it.” And this is where it gets suspiciously alarming. He continues in a rather advisory tone: “My brother is an asshole. What you don’t know about him is that he’s worked on classified stuff. His life was a complete blank for a while You’re not going to be able to get to him. He’ll deny everything. He’ll never admit to starting Bitcoin.” Although, many people have reviewed the writing style of the Bitcoin White-paper by Satoshi Nakamoto and denied the resemblance to Dorian.
This is yet another potential candidate who might be Satoshi Nakamoto. He has worked in a cypher-punk movement and as well as a cryptography writer. Andy Greenberg in his article, which was posted a few days after the Newsweek’s Leah McGrath Goodman article on Dorian S. Nakamoto, has done in-depth research on Hal. He found out that Hal Finney lived nearly a few blocks away from Dorian S. Nakamoto in Temple City, LA. Also, he is the second person who had used Bitcoin back in 2009.
Hal Finney was part of the first Bitcoin transaction
In the very first Bitcoin transaction, on January 11th, 2009, Satoshi Nakamoto sent 10 Bitcoins exclusively to Hal Finney. Although the fact is that Dorian S. Nakamoto has no resemblance to the Bitcoin White-paper, Andy Greenberg collected around 20,000 character samples from Hal Finneys blog posts and mailing lists and sent it for writing an analysis. The results were shocking – it turned out that the writing in “Bitcoin: A peer to peer Electronic Cash System” was surprisingly similar to Hal Finneys writing style. The researchers said that this had been the closest candidate they have analyzed over the years. In this quote in the e-mail which the chief scientist John Noecker wrote to Andy Greenberg, he says: “So, it seems to me that you may have found the real Satoshi Nakamoto.”
However, this does not prove that Hal could be the inventor of Bitcoin. First and foremost, Hal denied his engagement in the making of Bitcoin. In an e-mail he wrote to Andy, he says: “I’m flattered, but I deny categorically these allegations.”
In his article, Andy speculates on a few things. First, he thinks that judging by the fact that Hal Finney lived almost next to Dorian, he could’ve borrowed the name of Dorian – Satoshi Nakamoto, and used it as a pseudonym for his actions.
On the other hand, he thinks that Hal could’ve been a ghost-writer for Satoshi, hence the similarities between Hal’s writing and the Bitcoin white-paper. Finney also developed a proof-of-work system in the late 90’ties that closely resembles the one which is in Bitcoin. Hal Finney died on August 28, 2014, suffering from ALS (amyotrophic lateral sclerosis).
Nick is a decentralized currency enthusiast, who had worked on a similar project to Bitcoin – “Bit Gold”. By far, many people refer to him as the real Satoshi Nakamoto, as there are a lot of clues which justifies that. For example, Skye Grey, an internet researcher, found many writing style similarities between Nick Szabo’s posts and the Bitcoin White-paper. By running a reverse textual analysis, she found dozens of unique phrases. In her article, she writes: “I must stress this: an open, unbiased search of texts similar in writing to the Bitcoin white-paper over the entire Internet, identifies Nick’s bit gold articles as the best candidates.” Bitcoin itself is built on top of Bit Gold ideas, which makes this even more suspicious.
Nick edits his articles after Bitcoin launch
Another somewhat speculative evidence is that when Bitcoin came out, Nick Szabo kept quiet about it in his public comments. For someone who is deeply involved in the ideas of a decentralized currency, this seems rather odd that Nick hadn’t mentioned Bitcoin months after it came out.
After Bitcoin experienced its launch, Nick edited his previous Bit Gold articles, precisely one month after the Bitcoin white-paper got published. Again, this is just a speculation, but you cannot deny the obvious similarities. Of course, Nick has reportedly renounced his connection with Bitcoin.
Many have researched the mysterious pseudonym who created Bitcoin, and such things as the NSA (National Security Agency), the Illuminati, and even A.I. (Artificial Intelligence) revolved around consideration. Many things lead up to as why the NSA could’ve created Bitcoin. For example, the most persuasive argument is that the NSA developed the Bitcoin hashing algorithm – SHA256. Mohit Kumar, in his article for Hacker News, says: “The NSA apparently possesses groundbreaking capabilities against encrypted voice and text communication and has invested billions of dollars since 2000 to make nearly everyone’s secrets available for government consumption by cracking every encryption. But we don’t know precisely how much, maybe including Bitcoin too?” Also, they did a paper in 1997 called “How to make a mint: The cryptography of anonymous electronic cash.” This presented their ideas into making a viable cryptocurrency.
Mike Adams in his article “Evidence points to Bitcoin being an NSA-engineered psyop to roll out one-world digital currency” has even made a 10-step possible plan on how the NSA and Globalists might use Bitcoin to subordinate the society in the future.
Satoshi Nakamoto’s net worth
This is yet another mystery hidden in the “files of Bitcoin”. There are many accusations on how much Bitcoin Satoshi holds. One thing is for sure – he still hasn’t touched them. Will he ever? That is the question.
People have been researching through the first addresses in the Bitcoin network, to find a pattern and possibly link the dots to a positive outcome. The numbers vary from 1,000,000 BTC, 980,000 BTC or even as low as 66,9 BTC in the original first address in genesis block 0.
People speculate that Satoshi might have mined one million coins in the very beginning of Bitcoin. Many are arguing that the founder was the first miner, and thanks to that, he got hold of the million coins. However, others say that this is not true, as, at the time when Bitcoin first saw its daylight, there was more than one miner. Also, they justify this with the theory that “If you were Satoshi, would you start mining the instant you announced bitcoin? That would be an unfair head start, right?”
1 million Bitcoins
The one million bitcoin story has emerged from the idea that claims that every unspent coin mined in the first year of Bitcoin is Satoshis. That could not be entirely true, because the transaction history clearly shows that there were multiple miners at that time. Could they all be Satoshi? It’s not clear.
However, Sergio Demian Lerner did research on the Satoshi mining patterns in 2013. Judging by his estimates, Satoshi mined about 980k Bitcoins in the period from the genesis block to April 20, 2013. He created a graph of all the blocks from 0 to 50000, which shows that a single computer solved most of the blocks. Within these blocks, he masked all the blocks that were not in the Satoshi pattern and came up with 19600 blocks which would lead to 980k BTC. Judging by current exchange rates, that would be around $3,671,481,800. However, Sergio says that this data has a 0,1% error in value since he did the masking by hand.
More importantly, this rules out all the Hard Forks that Bitcoin has had. Bitcoin Cash, Bitcoin SV, Bitcoin Gold, Bitcoin Diamond, Super Bitcoin, Bitcoin Platinum, etc. If you take it as a fact, that Satoshi is still alive and can redeem his coins, then the approximate number is just mind-blowingly out of this space. But those are just numbers in the air.
Regardless of how many Bitcoins Satoshi owns, he has never yet touched them. People believe that he might be dead and that his treasury of Bitcoins could only be cracked some day. Will we come to that day? Also, currently the biggest Bitcoin holder is the FBI (Federal Bureau of Investigation), which seized more than 174k Bitcoins during the Silk road incident. After which Ross Ulbricht, the founder, was sentenced to jail, and the #FreeRoss movement arose. The FBI linked all these Bitcoins to Ross.
But this doesn’t clear the question on who was Satoshi Nakamoto. There are multiple figures who’s biographies could be linked to the mysterious personality, but all of them have a few “plot-holes”.
My conspiracy theory guess would be that Satoshi Nakamoto indeed was a group of multiple people working on Bitcoin. For example, the NSA developed the SHA256 algorithm, Dorian was a classified programmer, Nick was writing the White-paper, Hal shared his PoW idea, and was there to help Dorian to test and find bugs in the Bitcoin code. The NSA helped with financing and other practical things this group needed. All these figures, if connected, came up with a sophisticated plan on how to hide their work on the issue, created stories and alibis. So that the researchers, even if wanted, couldn’t find the exact truth.
They could have anticipated the massive popularity that Bitcoin could reach, and already before the time came up with multiple articles and made the core of the Bitcoin so crooked and complicated that no one could dig deep enough to find out the truth. The pseudonym itself – Satoshi Nakamoto, implies on the creator being a single person. Meaning, the researchers would search only for one person. Reading about this subject made me think that this sounds very much like a well-planned mission.
Back to Earth
Conversely, to what I stated above, two things make me stop and think about this on a deeper, more humane level.
First, why did Dorians’ brother say that? Why would he warn Leah? If Dorian S. Nakamoto has officially stated, with the help of his attorney, that he is not the creator of Bitcoin, then why does his brother say such things as “he will never admit starting Bitcoin” and hangs up the phone? That sure sounds very suspicious.
And second, why did Nick Szabo get off the grid when Bitcoin launched. He disappeared for a couple of months and did not share his thoughts on the revolution-like subject. When, in fact, he has dedicated a fair part of his life researching and developing similar ideas, hence Bit-Gold.
Despite what the theories are, the mysterious Bitcoin creator still stays anonymous. We could see more in-depth research in the future, but that all is to come.
First and foremost, the definition says that Bitcoinis a peer-to-peer (P2P) electronic cash system, as described in the white-paper. It was first published on October 31st, 2008 by Satoshi Nakamoto. In January 3rd, 2009 the first block was mined which marked the actual creation of Bitcoin.
Bitcoin along with Satoshi Nakamoto presented an entirely new alternative to the traditionally centralized currency transactions. A system built by the people for the people. So the primary intent is that people are the ones, who control it. Bitcoin enables people to transact money between users without the need of a centralized authority. Because of blockchain technology, Bitcoin can offer a completely transparent way to transact payments. This system can entirely question the need or importance of Banks and other similar money transfer institutions.
Also, Bitcoin was the very first cryptocurrency in the form as we know them today. Bitcoin inspired thousands of new projects, as of today we have more than two thousand cryptocurrencies in the whole wide world. Since bitcoin code is open-source, everyone can copy it and try to evolve it in their own way. That is the reason why we have so many other “Bitcoins” in the market. Everyone wants to prove that they can make a better Bitcoin, but the cold hard facts are that Bitcoin, since its creation, has never lost its #1 position. Ever. And it is very doubtable that it ever will.
In addition, Bitcoin has a fixed supply of 21 million BTC. Currently, there are 17,4 million coins in circulation.
How Bitcoin Works
Bitcoins are transferred via a peer-to-peer network. That means John can easily send money to Kate via this network. When John makes the transaction, miners create new blocks where this transaction will be recorded. By doing so, miners confirm this transaction. These transactions are tracked on the Blockchain, also known as the giant-ledger.
Blockchain records every single transaction that has ever been made within the network. Bitcoin blockchain produces new blocks every ten minutes. Every block in the blockchain is built up of a data structure. If a single file is corrupt in a chain, then blockchain prevents it from damaging the rest of the ledger.
So when John makes the transaction, it goes into the blockchain and now is waiting for confirmation. Usually, for small payments, it takes these ten minutes to be verified and recorded on the chain. For larger transactions, it could take up to even an hour when the blockchain needs to create at least six new blocks to avoid payment reversing. After the confirmation, Kate receives her Bitcoins.
When looking at a government which can print out as many bank notes as they want, thus producing inflation, Bitcoin works differently. That is, Bitcoin’s blockchain is built up in a way that it controls how many Bitcoins are made and how many are being produced.
Bitcoins blockchain has a 4 year block halving period. That means that every four years, or 210,000 blocks, the reward for miners, who produce Bitcoins with their computing power, halves. Miners produce new blocks every 10 minutes. At the moment, for every block that a miner solves the reward is 12.5 BTC. Currently, there are 70,250 blocks left until the mining reward is halved. Also, there are only 2 block halvings left to occur in the future of Bitcoin. Respectively the reward will halve down to 6.25 Bitcoins. In the next block halving, which would occur in 2024, the reward will divide down to 3,125 and stay that way until all 21,000,000 BTC will be produced.
Bitcoin’s key features
Bitcoin is decentralized. No single person or a central authority has full control over it. That means no one can freeze, lock or dismiss your money. It is based on a Blockchain. It was the first blockchain ever created and since then the development of this area has skyrocketed. Blockchain developers today are the most demanding job position in the world.
Bitcoin has a limited supply. There can only be 21,000,000 BTC in circulation. Today we have around 17,496,875 BTC in circulation. In other words, around 80% of Bitcoins have already been mined. According to estimates, bitcoin will reach its final coin figure sometime in 2140.
Bitcoin is deflationary. Some believe that Satoshi created Bitcoin to fight the money printing governments. It is awful that every year fiat money loses so much value. For example, during Fiscal Year 2014, the Bureau of Engraving and Printing delivered approximately 6.6 billion notes to the Federal Reserve, producing approximately 24.8 million notes a day with a face value of approximately $560 million.
Ron Paul described this very well in his website, calling the Fed crazy:
“When central banks create money, those who first get the new money enjoy an increase in purchasing power before the new money causes a real increase in prices. Those who receive the money first are members of the banking and financial elite. By the time the new money reaches the middle class and working class, inflation has set in, so any gain in purchasing power is more than offset by the increase in inflation. Thus, central banking causes income inequality.”
Bitcoin, on the other hand, as already mentioned, has a fixed supply. And this is the model that Bitcoin Maximalists are defending. For most people, this would seem like a utopian dream, but bear this in mind.
Imagine a society, a world, where your money not only retains its value but increases with time. Bitcoin possibly can provide this. Once reaching the total supply of 21 million, its value can only go up.
The best performing asset of all time
Anthony Pompliano called Bitcoin the best performing asset of all time for a reason. Since the creation of Bitcoin in 2009, it outperformed S&P 500, DOW JONES, NASDAQ, etc. “during the longest bull run”. Bitcoin experienced multiple declines with more than -80%.
Nevertheless, Bitcoin is still up +56,146.22% since its creation. Because when Bitcoin started, it was worth 0$. At the time of writing the price of one Bitcoin is $3,523.20.
Who created Bitcoin?
Ten years ago the Bitcoin white-paper, also called as “Bitcoin: A Peer-to-Peer Electronic Cash System” was first published. It was posted by an anonymous pseudonym Satoshi Nakamoto on October 31st, 2008. To this day people are still exchanging opinions on what, who or they are. Some speculate that he could be Japanese because of the Japanese-like pseudonym. Some say that he might be British because of his perfect English writing style in his posts. Also, people believe that that might be a group of people rather than just one. Nevertheless, there have been multiple people claiming that they are the real Satoshi Nakamoto. Also, many journalists have tried to find out who the mysterious creator of Bitcoin is, but all evidence is circumstantial.
The advantages of investing in Bitcoin
Bitcoin along with cryptocurrencies as an asset class, opened the possibilities for lots of people to start learning about investments. Before then, millennials and other people interested in investing knew about investment opportunities such as:
Shares or Equities
A share or a stock is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. Basically, this is a small portion of a company. You can only buy them as a whole, hence the indivisibility. Your shares are entirely dependent on the company and the wellness of their business.
Bonds are also known as fixed-interest stocks. These are a form of IOU (abbreviated from the phrase “I owe you”) issued by governments and companies when they want to borrow money from investors. They pay a fixed level of interest, with higher-risk borrowers paying more in interest than lower-risk borrowers.
Commodities such as Gold and Silver is one of the best investment opportunities of all time. There is a huge variety of commodities in the global markets. It includes Oil and Gas, Copper, Iron and even such agricultural commodities as wheat, rice, soya, lumber and so on. Similar to shares and bonds, commodity prices rise and fall depending on the supply and demand, and funds can take advantage of this.
Property as an asset class is also considered as one of the best investment types in the world. If you buy land or a house, there are multiple Return of Investment opportunities. You can develop it and almost in all cases, the price will rise. Whether residential or commercial, the property has a good record in providing a financial return that beats inflation.
Investor as a slave
All these asset classes till now made the investor a sort of a slave to the specific asset class. A Broker takes care of everything. He also charges a fee for his work, which is logical. Considering this, people just handed over their money to people who they didn’t know. This makes the investor almost a slave to the particular service which provides the brokerage. Also, the investor needed to know everything about the particular market. This requires many hours of reading and understanding, especially, if we look at markets such as Commodities or Real-Estate.
Also, it required huge amounts of money to start with, and up until now investing seemed like only for the rich. For example, if you wanted to invest in stocks, you couldn’t just buy a portion of a stock, like a 0,2 part of the stock. You needed to buy one whole stock. If you wanted to invest in real estate, you basically needed the money to purchase a house or land. And those are not cheap.
However, Bitcoin introduced a whole different type of investing. It is possible to buy the smallest portion of BTC you need. People don’t have to buy a whole unit. You even can buy Bitcoin worth of $10. Or even less, if you want. People always say Bitcoin has a scaling problem, but it doesn’t. Bitcoin can be divisible into small fractions like 0.00000001 BTC, called Satoshis. 1 Satoshi is the smallest unit of Bitcoin. Also, you don’t need a broker to do the purchasing for you. You just need to read a few beginners guides, and you’re all set. Not to mention that when investing in Bitcoin you are the core holder and owner of your investment. Of course, if you don’t use any third-party services.
The disadvantages of investing in Bitcoin
Bitcoin has been and still is a very volatile asset. It still is looking for a more stable market so we wouldn’t recommend it for short-term investments. However, lately, we can see that the BTC market is starting to mature. In the chart below you can see the weekly volatility compared to other asset classes. Bitcoin’s weekly volatility is only a percent higher than Oil.
In comparison Bitcoin’s market cap at the time of writing is only $62,4 billion compared to S&P 500’s $21.03 Trillion, or Dow Jones Industrial Average (DJIA) $7.5 trillion. You can only imagine how stable Bitcoin would be if it had a market cap of that scale.
Also, Bitcoin does not come with an insurance policy, like all the other above-mentioned asset classes. At the moment Bitcoin’s volatility is very high and it can come down as fast as it went up. Let alone the future regulations could improve or crash the price.
How Bitcoin has performed over the years.
The first data on Bitcoins’ (BTC) price goes back to July 7th, 2010, when the price was $0.05. So the first bull-run took it to $18.89 in May 29th, 2011. Then it went in a bear market for almost a year, cutting the price back to around $5. After that, a year of a slow bull market sent the price to $14, and at the beginning of 2013, it exploded to $142. Not long after, it surged its way to the first four-digit price – $1,205 in 2013 November. Then BTC went in on a two-year-long bear market lowering the rate to $228.50 in August 2015.
The biggest bull-run in Bitcoin history
After that, a three-year-long bull market began. The price completely exploded and reached unbelievable heights. The cost of one BTC was $19,000! In some exchanges, it reached even $20,000! Thanks to this bull market, lots and lots of people found out about Bitcoin. Media was covering it every day. CNBC was talking about how to buy Bitcoin and encouraging everyone on it. Everyone wanted to own a Bitcoin, which, preferably, he or she had purchased in 2013. During December 2017, it almost felt like Bitcoin is the only thing what interests people. The market was booming, new projects were coming out every two hours, and it felt like – this is it! Bitcoin has gained the needed attention – now we have to start using it.
Along with massive popularity, came the networks’ usage problems. Bitcoin transaction fees skyrocketed and reached a shocking $37 per transaction in December 21st. That meant that small payments via BTC couldn’t be transacted. Since then the hype around Bitcoin has settled. Small payments now can be made through LightningNetwork – Bitcoins’ off-chain solution for micro-transactions. However now, the transaction fees are as low as $0,01.
Today Bitcoin accepts a total of 14,227 venues across the world. The most active areas being Europe and North America. The multiple payment cards and apps give us the possibility to spend our cryptocurrency as we want. You can buy cars, houses, boats, coffee, pay for rent, mobile services, and mainly use it as money, which it is. Just recently, during the Baltic HoneyBadger Bitcoin conference, The B Foundation was announced, which is an organization through which people will have the opportunity to finance Bitcoin.
Also, Bitcoin is slowly entering the traditional equity markets. CME and CBOE launched their first Bitcoin Futures markets back in 2017, January. Intercontinental Exchange (ICE) has launched a company called Bakkt, which will present Bitcoin Futures markets as well. However, they have failed to deliver a specific date for this launch. January 24th, 2018 was the date, but due to a government shutdown, it was postponed. Also, the SEC (Securities and Exchange Commission) soon will review the multiple Bitcoin ETF (Exchange Traded Fund) applications. These milestones can bring huge funds coming into Bitcoin, which could eventually increase the price.
However, are we all in this just for the money? Alternatively, are we in for the technological or the financial revolution? How long will it take for Bitcoin to reach mass adoption, and, in general – will it be Bitcoin?
You can read the original .pdf file of the Bitcoin White-Paper HERE.
January 3rd marks the day when Bitcoin blockchain started working. Some refer to this day as the real birthday of Bitcoin, despite 31st of October when Satoshi Nakamoto published the Bitcoin white paper. January 3rd was the day when the first block was mined, and the first 50 Bitcoins were issued to Satoshi Nakamoto. Eventually, people started calling it “block 0”, although previous adaptors called it Block 1.
What is Bitcoin?
Ten years ago the Bitcoin white-paper, also called as “Bitcoin: A Peer-to-Peer Electronic Cash System” was first published. It was posted by an anonymous pseudonym Satoshi Nakamoto on October 31st, 2008. To this day people are still exchanging opinions on what, who or they are.
The definition says that Bitcoin is a peer-to-peer (P2P) electronic cash system, as described in the white-paper. It was first published on October 31st, 2008 by Satoshi Nakamoto. Because of blockchain technology, Bitcoin can offer a completely transparent way to transact payments. This system can entirely question the need or importance of Banks and other similar money transfer institutions. It ultimately allows sending money from one peer to another (peer-to-peer). Thus getting rid of the third-party instances such as Banks.
The coinbase, basically, is the input of a generation transaction. While regular transactions use the input section to refer to their parent transaction outputs, a generation transaction has no parent and creates new coins from nothing. The coinbase gives the possibility to contain any arbitrary data. And, interestingly enough, the Genesis Block includes a rather famous message:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”.
Originally, that was a headline in The Time magazine on January 3rd, 2009. Some say that Satoshi intended this to provide proof that this is the first block. Others vary in speculations that this kind of proves that Satoshi Nakamoto was living in the United Kingdom or that the text might have a meaning about Bitcoins purpose.
An interesting fact is that these coins cannot be spent due to the Bitcoin code. So even if Satoshi once came out and wanted to claim these 50 BTC, he couldn’t. It is not entirely sure if this was done on purpose. A Redditor who goes by the nickname theymos, explained it very well:
“This is how the Bitcoin client worked when Satoshi created it: The client maintains a block database and a transaction database. When it finds that its block database is empty, it inserts the genesis block into its block database to get things started. This block includes a transaction sending 50 BTC to 1A1z…, but the client does not insert this transaction into its transaction database. So even though this transaction is part of the blockchain, if the client sees a transaction spending this 50 BTC, it won’t be able to find the 50 BTC transaction in its transaction database, and the spending transaction will be rejected. In other words, the genesis block’s transaction isn’t considered to be a “real transaction” by the original Bitcoin client.”
Since then, people supporting the Bitcoin movement and the creation of Bitcoin blockchain has sent small amounts of donations to the address. For example, today, January 3rd, 2019, at 11:10 AM UTC, the address already has received six gifts. The amounts vary, but overall they are tiny amounts. Over time, the genesis address has collected more than 16 BTC, altogether from 1492 transactions.
On January 3, 2019, 10 years after the creation of Bitcoin, BitMEX has purchased an ad placement on the cover of The Time magazine. It says “Thanks, Satoshi. We owe you one. Happy 10th birthday, Bitcoin”. Below this ad is a block hash. When opening the transaction coinbase, we see a message which reads:
The average block time in the Bitcoin blockchain is 10 minutes. Referring to this, it seems rather odd that the next block was mined only six days later. There are many speculations on why this happened. Some say that it could be that Satoshi mined the first block with a backward timestamp to match the edition by The Times. Another opinion is that Satoshi actually was mining all these six days with the same timestamp because of the block’s low hash.
Raw block data
The raw HEX version of the Genesis block looks like:
Satoshi Nakamoto is the name which is used when referring to the most controversial personality in the crypto space. He is an unknown person or people who developed bitcoin and authored the bitcoin white-paper. In a recent post by Medium, it is clear that Satoshi has contacted Medium. The mysterious man sent a message to them: “I am Satoshi Nakamoto, I am the inventor of Bitcoin and Blockchain Technology. I have written an autobiography for the courtesy of public interest worldwide. I have decided to meet some Bitcoin believers, only 360 selected persons. I will distribute 360 copies of my autobiography first to 360 Bitcoin Knights. Each person needs to sign an NDA to meet with myself and receive my autobiography..”
Facts He Shared
Here are 10 short facts about his autobiography that you might not know, taken from the message he shared:
Satoshi reveals that he is one of the British micro-economist and digital scientist.
He would have stayed anonymous forever, but due to some terrible deadlocks in his Technology, he has decided to reveal his identity in order to solve them.
He has been cornered by inventing such a disruptive Technology against the elites, who are the people controlling the government and the rest of everyone are just slaves of the elites dancing to their tunes.
Several intelligence agencies like NSA, CIA, FBI, and MI5 have constantly been suppressing and threatening him since 2010, stating that an Asian has no rights to invent such amazing Technology.
Even the Bitcoin developers are constantly trying to steal the intellectual properties of Bitcoin and the Blockchain Technology. He has even advised them in his book by saying that they may easily steal it from him but that would be deceiving themselves only.
In the list of Contents, he has mentioned “Six Assassins and Satoshi Nakamoto -2013” and probably might discuss the assassination attempt on him by a number of intelligence agencies in this chapter.
He said, in his book that he would be unveiling his legal name place of birth and everything about him in his book. People just know by his Japanese Pseudonym.
Satoshi makes a point that he has fallen into a trap, where either if he agrees or disagrees that he is the inventor of the technology, he would be killed.
He refers to some people as aliens who have come from another planet with 40 of them trying to kill him.
Nakamoto mentioned that he is suffering a slow death due to biological poisoning by them.
Opening His Right Eye
He has published all his social media links and he has even published a photo, where he “opens” his right eye.
You can contact him through e-mail email@example.com, and as he states – you can ask him any question.
This is something so big to the crypto community, as everyone who knows who is behind bitcoin, secretly wants to know everything about him. His mysterious persona has intrigued the whole world and now he finally will come out to the greater public.