Connect with us

Bitcoin

How This Bitcoin Developer Lost 25,000 BTC

Published

on


ALLINVAIN’s journey in the early Bitcoin era highlights the potential and inherent risks of the cryptocurrency market.

As an early adopter and significant contributor to Bitcoin’s growth, his experiences reflect the crucial need for security measures. His story remains a reminder of the vulnerabilities that early Bitcoin users faced.

Bitcoin Developer Lost 25,000 BTC

In the early days of Bitcoin, when the cryptocurrency traded for less than $0.05, a developer known as ALLINVAIN mined and traded Bitcoin. By 2010, he launched one of the first Bitcoin exchanges, Bitcoin Express, which allowed users to buy Bitcoin with PayPal.

Early transactions sold 1,000 BTC for just $5. At that time, he was mining around 1,200 BTC daily with a laptop. However, the simplicity of mining Bitcoin changed in 2011 as more people joined the network, drastically increasing the mining difficulty.

“It’s as if everyone, their mother, father, cousin, and their dog started mining,” ALLINVAIN remarked.

Read more: Is Crypto Mining Profitable in 2024?

Bitcoin Mining Difficulty
Bitcoin Mining Difficulty. Source: Galssnode

To support the Bitcoin economy, he began buying and selling real goods for Bitcoin, such as acting as a purchasing agent for Canadian users wanting to buy coffee cards. His dedication to the Bitcoin economy earned him the status of a “Bitcoin whale,” as he accumulated over 25,000 BTC.

In early 2011, Bitcoin’s value surged to $30, marking the first significant bubble. ALLINVAIN’s holdings then amounted to about $500,000. However, on June 13, 2011, his fortune took a dire turn when he discovered a 25,000 BTC transaction had been made from his crypto wallet without his consent.

“I am totally devastated today. I just woke up to see a very large chunk of my bitcoin balance gone. If only the wallet file was encrypted on the HD. I do feel like this is my fault for not moving that money to a separate non-windows computer,” he wrote.

The theft is worth approximately $1.6 billion today. He acknowledged his lapse in security, noting that his unencrypted wallet file had been compromised, possibly by a trojan virus disguised as mining software.

Read more: 10 Best Crypto Desktop Wallets for 2024

The news of the theft quickly spread globally, with coverage by Forbes, branding it the first major Bitcoin theft. Conspiracy theories abounded, with some speculating that ALLINVAIN had staged the theft. However, he admitted it was his fault, blaming poor security practices.

Despite the loss, ALLINVAIN remained active in the Bitcoin community, eventually starting a hosted mining business to rebuild his holdings. His experience serves as a stark reminder to Bitcoin users of the necessity of securing private keys offline and maintaining personal security protocols.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Bitcoin

Bitcoin Whales Remain Determined, $3.96 Billion Worth Of BTC Gobbled Up In 96 Hours

Published

on


All eyes are on Bitcoin, especially as many traders continue to anticipate a break above the $100,000 mark. This anticipation has cascaded into a spike in activity, especially among Bitcoin whales. Interestingly, Bitcoin whales are making bold statements amidst the anticipation, with on-chain data pointing to an accumulation of over 40,000 BTC in just 96 hours among this holder cohort.

This interesting accumulation coincides with the Bitcoin price reaching a peak of $99,645 in the last 24 hours, adding further momentum to the narrative of a possible historic price milestone.

Examining The Holding Patterns Of Bitcoin Whales

Bitcoin’s recent price dynamics have put the spotlight on Bitcoin whales. Ali Martinez, a well-known cryptocurrency analyst, drew attention to the remarkable activity of Bitcoin whales on social media platform X.

While highlighting Santiment data, Martinez revealed that Bitcoin whales have bought over 40,000 BTC worth approximately $3.96 billion in the past 96 hours. Notably, the Bitcoin whales referred to in this metric by Santiment consist of addresses holding between 100 and 1,000 BTC. 

Image From X: Ali Martinez

 

This aggressive accumulation comes at a critical juncture for Bitcoin, with prices flirting near the much-anticipated $100,000 mark. Such whale activity typically reduces the available supply of Bitcoin on the open market, which is expected to keep pushing up the Bitcoin price.

Despite the increase in whale accumulation, on-chain data from Glassnode suggests that long-term holders have upped their profit-taking in tandem. Particularly, over 128,000 BTC has been sold by long-term holders since early October.

However, this long-term holder profit taking has so far been offset by the demand from US Spot Bitcoin ETFs. These ETFs have acted as a counterbalance, absorbing nearly 90% of the Bitcoin sold by long-term holders.

Image From X: Glassnode

 

A possible explanation is that long-term holders are exiting their self-custody of Bitcoin and are instead diverting their holdings into Spot Bitcoin ETFs in order to benefit from their regulatory clarity. According to data from SoSoValue, Spot Bitcoin ETFs in the US witnessed consecutive days of inflows throughout last week to bring the total inflow to $3.38 billion, which is the largest weekly inflow since their launch in January 2024. 

Bitcoin is currently trading at $97,493. Chart: TradingView

What’s Next For Bitcoin Price?

Looking ahead, the Bitcoin price is definitely on its way to break above $100,000 in the next few days. However, it remains to be seen what happens after that. Crypto analyst Tony Severino has speculated that the Bitcoin price peak could double within a timeframe of two weeks to two months following the break above $100,000.This prediction is based off of the Bitcoin price performance after it first broke above the $10,000 price level in 2017. 

On the other hand, veteran analyst Peter Brandt suggests there could be some sort of selling pressure among bulls once the Bitcoin price breaks above $100,000. 

“What I had in mind here is the possibility that bulls will sell their BTC sub $100,00 thinking they will buy a correction that does not come, then turn bearish if Bitcoin goes to $120,000 believing price must come down,” he said.

Nevertheless, the current crypto market landscape is set in place for a continued Bitcoin price increase in the next few weeks and months.

Featured image from DALL-E, chart from TradingView



Source link

Continue Reading

Bitcoin

Senator’s Bold Proposal To Replenish US Reserves

Published

on


US Senator Cynthia Lummis of Wyoming is doubling down on her efforts to legitimize Bitcoin and possibly add this digital asset to the country’s reserves.

In a November 21st interview, Lummis suggested that the US Federal Reserve sell some of its gold reserves to invest in the crypto. The Wyoming senator shared that the proceeds from selling a portion of gold reserves, valued at 1970 prices, can boost the US dollar and reduce the country’s growing debt.

Lummis’ announcement comes as BTC hit another all-time high and nears the $100k milestone. By pursuing a Bitcoin policy, the Federal Reserve can also benefit from higher returns.

Bitcoin is a “gold standard in digital assets, and setting up a strategic reserve can help the country’s financial strategy.

Lummis Says A BTC Reserve Can Boost USD, Reduce Debt

Lummis is one of the most outspoken supporters of Bitcoin and cryptocurrencies and pushed for the Bitcoin bill in the Senate. As a long-time crypto holder and supporter, the senator admitted owning five BTCs and putting them in a trust.

The lawmaker said that the government can adopt this strategy, start a crypto reserve, and hold these assets for at least two decades.

Lummis admitted that she met with incoming US President Donald Trump about the Bitcoin proposal. Under the newest Lummis plan, the gold certificates held at a dozen Federal Reserve banks can be converted to their current fair market value. The proceeds from the sale of the certificates, pegged at 1970s prices, can be used to buy BTC.

A Look At The Proposed US Bitcoin Reserve

The planned Bitcoin strategic fund combines some long-term investment phases carried out over several years. The Treasury purchases 200k Bitcoin yearly under the Bitcoin Act 2024 for five years with at least retaining the digital assets for 20 years.

BTCUSD trading at $97,500 on the daily chart: TradingView.com

To ensure fairness and transparency, the government shall implement a Proof of Reserve System, where the government will publish audited quarterly reports. If other agencies have BTC holdings, these will be consolidated under the proposed Strategic Reserve.

A provision is also for the usage of the reserved BTC as a safe financial mechanism that will enable the agencies to use BTC as long-term assets. Moreover, the government will establish a decentralized storage network that can protect the assets against vulnerabilities and risks.

Image: Reddit

Some Critics Question The Lummis Plan

Like most financial policies, the Lummis plan has its critics. According to Avik Roy of the Foundation for Research on Equal Opportunity (FREOPP), Lummis’ suggestion to create a Bitcoin reserve will not necessarily help the country solve its debt woes.

In a speech at the North American Blockchain Summit 2024, Roy argued that the Lummis plan cannot cover the growing debt, which is now at $35 trillion.

Roy shared that a BTC reserve will be a welcome move, but the government must still implement budget reports to address the $2 trillion annual deficit. He also raised the possibility that the country may abandon its BTC reserves in the future, similar to gold’s experience in the 1970s.

Featured image from ZeroCap, chart from TradingView





Source link

Continue Reading

Bitcoin

AI Company Invests $10 Million In BTC Treasury

Published

on


As MicroStrategy continues to reap success with its aggressive Bitcoin play, it’s only a matter of time before other companies tread in the same path.

Genius Group, an AI-focused and Bitcoin education firm, is the latest one to the bandwagon. According to a press release, Genius Group said that it had bought 110 Bitcoins for a sum of $10 million at an average price of $90,932.

This purchase sets up the company’s first “Bitcoin treasury,” an essential step towards its plans to implement a “Bitcoin-first policy,” which it initially outlined in 2023. Under its Bitcoin-first policy implemented last year, the company commits to investing at least 90% of its current and future reserves in digital assets, initially targeting $120 million.

The 110 BTC is the company’s first tranche, and it expects to make more purchases to achieve its strategic plan.

A Bitcoin-First Policy For Genius Group

Genius Group announced on November 12th to go full-steam ahead on Bitcoin. According to the company’s corporate strategy presented at the end of the 2023 quarter, it would commit 90% of its reserve to BTC, a long-term plan of holding Bitcoins worth as much as $120 million.

According to CEO Roger James Hamilton, his company is in a position to integrate traditional learning with modern financial literacy backed by the blockchain. He added that when Genius Group adopted MicroStrategy’s Michael Saylor’s Bitcoin plan, there were no rules or plans to follow.

BTC market cap currently at $1.8 trillion. Chart: TradingView.com

Genius Group Continues Its Blockchain, Bitcoin Education Series

The Genius Group is primarily an AI-focused and Bitcoin-first education group. The group aims to promote Bitcoin as a payment system through its educational platform as part of its operations.

The company recently launched its Web3 Wealth Renaissance, an initiative that seeks to encourage the use of AI and spread awareness of the benefits and functions of cryptocurrencies and the blockchain.

Genius Group’s education campaign also includes a Bitcoin and Blockchain podcast series. On Tuesday at 9:00 a.m. Eastern Time, the podcast will cover a forecast on Bitcoin and fiat money’s future. The podcast will also explore the MicroStrategy story and how Saylor pioneered the Bitcoin Treasury concept.

More Corporations Adopt A Bitcoin-Focused Investing Policy

With MicroStrategy as a clear leader, many companies are also starting to add Bitcoin to their holdings. On November 18th, MicroStrategy announced its purchase of 51,780 Bitcoin for $4.6 billion.

Other companies followed suit, with MARA allocating $700 million to buy more Bitcoin, Semler Scientific raising $21 billion to buy 215 BTC, and Metaplanet issuing a $1.75 billion yen debt to finance its Bitcoin dream.

Other industries are joining the trend, including tech and crypto companies. For example, Cosmos Health Inc. has integrated a crypto strategy. The government’s interest in Bitcoin and crypto is also increasing. Sławomir Mentzen, a Polish presidential candidate, has announced his plans to create a BTC reserve.

Featured image from DALL-E, chart from TradingView





Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io