BitCoin - The Real Story

What's the purpose of Bitcoin creation. (the real one)

Bitcoin, The real story and purpose.

In: Cryptography, Exploit, Hack, Bitcoin

Back in old days of bitcoins mining, at the very begining of cryptocurrency, someone was smart enough with great idea. How to perform mass money laundering without even comitting a crime. What he never expected, is that the action taken will result in, wide adoption and a whole new cryptocurrency market.


  • Back in 2012, one company built a football statium size server facility.
  • The very same year, company paid around 520 Million US Dollar for Electricity costs.
  • With no other business activities, company reported huge loss, paying no tax at all.
  • The Computationally-Difficult at the time was approximate to an electicity cost.

Now i am not going to name a company and location (but it might be easy for you to find). Since 2012, company lost more then a milliard.

In fact, all they lost is paying a tax.

More important, not a single law is broken in one of the bigest tax evasion.

A slight problem?

Everyone started mining.

Mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network. This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented.

That raised a problem for initial mastermind. GPU mining, ASIC mining and other technologies implemented by professionals around the world started to make it harder and harder. At the point when electicity costs started to exceeds the revenue achieved through mining, complex is sold. (Along with about 5 others built by the same company within the timeframe).

Conclusion?

The wide adoption of mining has stopped one of the biggest tax evasion in the history. It has, however, help in developing currency of modern age. Great work Ryusei! Enjoy your tax-free money and thanks for helping achieve wide adoption of cryptocurrencies today.

The one and only mistake that helped discovery of true bitcoin history is one crucial mistake. Man, your company bought more Graphic Cards in one month then half of Europe in a year. Anyway, great job!

Stefan Ćertić
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