That’s why Bitcoin crashed immediately after the positive comments from Elon Musk

Bitcoin price pumped and fell again immediately after Tesla CEO Elon Musk spoke positive about BTC on Clubhouse.

Musk praised Bitcoin and said it is now ready for wider adoption. He was “late for the party” – which suggests that he is now a Bitcoin enthusiast.

So why did Bitcoin respond with a decline?

On Sunday evening, January 31st, Elon Musk, CEO of Tesla and SpaceX, appeared on the popular Clubhouse app to discuss various topics. During the conversation, Musk was asked for his thoughts on Bitcoin. He said:

“At this point, I think Financial Peak is a good thing. I am an advocate of bitcoin. I’m a late caller, but a supporter. Bitcoin is on the verge of widespread acceptance among traditional finance people. ”

But despite the positive sentiment surrounding BTC, the price fell from $ 34,400 to below $ 33,800 in minutes.

According to analysts at IntoTheBlock, BTC saw its largest deposit on centralized exchanges in over four months last Friday. This trend coincides with BTC’s near-term rebound from $ 32,200 to around $ 33,800.

Before the interview, traders and analysts expected that this would increase the BTC price

A pseudonymous crypto trader known as “Loma” wrote that Bitcoin rose in anticipation of Musk’s Ask Me Anything (AMA). He added:

“I’m not saying you should longe him or anything. Just that if you’re bearish, you could be better off in a few hours. $ BTC (and consequently the rest of the market) is moving upwards in anticipation imo. ”

Bitcoin enthusiasts expected Musk to mention BTC – following his Twitter bio change and liking a DeFi-related Twitter post.

If Musk talks about Bitcoin on Clubhouse, analysts say , Bitcoin ( How To Buy Bitcoin From eToro ) could see a Friday-esqe rally. Since BTC rose 14% in two days.

But there are several worrying on-chain indicators that signal a weakening trend.

Neko, a semi-pseudonymous crypto trader, comments that the premium on Coinbase was on the decline. This typically signals a decline in US buyer demand.

“BTC Coinbase Premium Index * The gap between Coinbase Pro price (USD pair) and Binance price (USDT pair), indicating strong spot buying pressure from Coinbase when the premium is high. * The current price exceeds the premium, which is a little worrying compared to last week. “

Presumably, due to lackluster on-chain fundamentals, Bitcoin pulled back when the highly anticipated event occurred where Musk talked about Bitcoin.

Visa reaffirms interest in cryptocurrencies and crypto payments

Stablecoins in particular have aroused the interest of the large payment service provider.

Visa managing director Al Kelly confirmed at an official press conference for the first quarter of 2021 that the payment service provider will continue to rely on crypto payments.

At the same time, he revealed which strategy Visa wants to use with regard to cryptocurrencies

The payment service provider, which has total assets of more than 72 billion US dollars for 2019, has increasingly turned towards crypto payment services in recent months. On the one hand through cooperations for crypto debit cards and on the other hand through investments in fintech startups like the company Zap. However, this month the American antitrust office prevented Visa from buying up the startup Plaid.

Nonetheless, Visa has long-term plans when it comes to crypto payments. The company sees itself in the best position to establish itself in this sector. According to a transcript from the press conference, Kelly said, “We are convinced that we are in a unique position to make cryptocurrencies safer, more useful and more practical for payments.”

The Visa CEO divides cryptocurrencies into two main groups:

“On the one hand, cryptocurrencies, which represent a completely new asset class and act as a store of value, and on the other hand, stablecoins, which are linked to existing national currencies and are primarily used as a means of payment.”

For stores of value à la Bitcoin, Visa wants to act as an “access ramp” through which investors can access the cryptocurrency from their local currencies:

“Our strategy for these cryptocurrencies is to work with wallet providers and crypto exchanges so that users can buy them via Visa or use them to pay at one of our 70 million retail partners.”

The strategy for stablecoins is much more proactive, because Visa sees this form of cryptocurrency as “an emerging innovation in the field of payment services that has the potential to be just as common in global trade as any other national currency”. In this context, public blockchains could possibly become points of contact for existing payment systems.

Investisseur anonyme : Obtenir des bitcoins quand ce n’est pas un grand facteur de discussion

Les bitcoins sont en plein essor ces derniers temps, mais selon un investisseur – qui souhaite rester anonyme – ce n’est pas le meilleur moment pour acheter.

Investisseur anonyme : Acheter des bitcoins quand les gens n’en parlent pas

À première vue, on peut comprendre d’où viennent ces mots. Après tout, si quelque chose s’emballe comme s’il n’y avait pas de lendemain, l’idée naturelle est que l’actif va probablement s’effondrer un jour ou l’autre. Ce serait probablement le meilleur moment pour acheter, étant donné qu’on peut l’obtenir à un prix moindre.

Mais selon l’investisseur anonyme, les choses vont un peu plus loin. En fin de compte, le meilleur moment pour acheter des bitcoins est lorsque personne n’en parle, ce qui ne serait évidemment pas le cas en ce moment vu le nombre de recherches de bitcoins sur Google ces derniers temps.

L’investisseur – qui serait originaire de Manille aux Philippines – affirme être l’un des premiers à avoir adopté la monnaie. Dans une interview, il déclare

Le meilleur moment pour acheter des bitcoins est quand il y a du sang dans la rue, que tout le monde panique et que personne n’en parle.

Le détenteur a acheté environ deux bitcoins et demi en 2013. L’achat a été effectué sur des bitcoins locaux à une époque où chaque unité coûtait environ 100 dollars. Ainsi, on estime que l’investisseur en question a dépensé environ 250 dollars au total. C’était à une époque où le bitcoin n’avait pas l’attention qu’il a aujourd’hui et vu l’ampleur des discussions autour de la première monnaie numérique du monde, l’investisseur pense qu’une bulle est peut-être en train de se former.

En outre, le bitcoin a pris une nouvelle forme au cours de l’année dernière, dans la mesure où de nombreux individus ne considèrent plus la monnaie comme un actif purement spéculatif, mais plutôt comme un outil de couverture. Il s’agit d’une réserve de richesse ou d’un produit qui peut potentiellement garder son argent en sécurité en période de conflit.

L’investisseur n’est pas d’accord avec ce sentiment, affirmant qu’il y a encore trop d’ignorance en ce qui concerne la technologie et le contexte de bitcoin. Il affirme que sans une éducation appropriée inculquée aux gens, les pièces de monnaie ne seront jamais rien d’autre qu’un objet spéculatif.

Il commente :

Les gens oublient que ce n’est pas la première bulle. Tant que les gens n’en comprendront pas la technologie, ce sera toujours un bien spéculatif… Quand personne ne veut y toucher, c’est là que vous l’achetez. Pas quand les gens en parlent.

Il affirme qu’il a eu une histoire quelque peu négative avec la pièce, ayant perdu environ 16 unités de BTC dans la catastrophe du Mt Gox en 2014. Il affirme également que tous les analystes qui prétendent que la pièce pourrait atteindre six chiffres à l’avenir vendent secrètement leurs réserves de BTC et risquent d’induire le public en erreur.

La technologie est importante à connaître

Il mentionne :

La seule raison pour laquelle je dirais aux gens de s’y essayer, c’est qu’il est important de comprendre comment ça fonctionne et comment s’en occuper.

La narrativa “Bitcoin è cattiva” si indebolisce perché le banche australiane avrebbero riciclato 385 milioni di dollari per i cartelli della droga

La narrativa che Bitcoin è usato principalmente dai criminali si indebolisce come le banche australiane hanno riferito di aver riciclato 385 milioni di dollari per i cartelli della droga.

Tra le rinnovate osservazioni anti-Bitcoin attribuite ai principali attori della finanza, sono emersi rapporti che mostrano banche in Australia che lavorano in combutta con violenti cartelli di cocaina sudamericani. Nonostante le aspirazioni al contrario, il mercato delle criptovalute continua a rappresentare una parte insignificante dei crimini finanziari globali.

Le banche australiane vendono soldi sporchi ai cartelli della droga

Secondo l’Australian Financial Review, le banche del paese avrebbero riciclato circa 500 milioni di dollari australiani (circa 385 milioni di dollari) per i cartelli della droga sudamericani. La rivelazione arriva in mezzo alle azioni intraprese dalle forze dell’ordine nel paese per interrompere l’elaborato schema di riciclaggio di denaro.

I dettagli dell’indagine sulla questione hanno rivelato che le banche australiane hanno aiutato a spostare oltre 300 milioni di AUD tra il 2014 e il 2017. Le banche avrebbero anche usato il denaro sporco dei cartelli della droga per acquistare costosi articoli elettronici da trasferire nel sud-est asiatico e in Medio Oriente.

Nove istituzioni finanziarie sono state implicate nella questione, secondo l’Australian Border Force (ABF), con altre sette con sede fuori dal paese. Commentando il rapporto, una portavoce dell’ABF ha rivelato:

“L’ABF è impegnata a proteggere la comunità australiana combattendo e interrompendo il comportamento criminale che sfrutta i sistemi commerciali transfrontalieri dell’Australia e ha effettivamente interrotto le operazioni di riciclaggio di denaro delle entità con sede in Australia”.

La rivelazione che le banche australiane stanno aiutando a riciclare il denaro per le organizzazioni criminali arriva sulla scia delle pratiche discriminatorie segnalate da alcune banche contro i commercianti e gli scambi di criptovalute. Come precedentemente riportato da CryptoPotato, il proprietario di uno scambio di Bitcoin ha recentemente intrapreso azioni legali contro due banche per la chiusura dei suoi conti.

Banche che lavano i proventi del crimine

Già nel 2019, i documenti trapelati dal Financial Crimes Enforcement Network (FinCEN) degli Stati Uniti hanno esposto massicce operazioni di riciclaggio di denaro da parte delle banche. All’epoca, il dossier mostrava le principali banche americane che incanalavano oltre 2.000 miliardi di dollari di denaro sporco per varie organizzazioni criminali.

Infatti, le banche americane continuano a pagare multe enormi per pratiche illegali che vanno dal riciclaggio di denaro allo spoofing. Nel 2020, i funzionari statunitensi hanno anche multato Wells Fargo per oltre 3 miliardi di dollari per molteplici illegalità che coprono un periodo di 15 anni.

È interessante notare che la Berkshire Hathaway di Warren Buffett detiene una parte significativa di azioni Wells Fargo. È forse ironico che Buffett sposi il sentimento anti-Bitcoin legato alle illegalità quando Wells Fargo sembra aver facilitato i trasferimenti associati alle attività criminali.

Grayscale posiada teraz 3% wszystkich Bitcoinów w obiegu

Po zakupie 16 244 BTC (607 milionów dolarów) 18 stycznia, Grayscale stała się ostatnio największym nabywcą instytucjonalnym na rynku Bitcoinów. Rozwój ten miał miejsce po aktualizacji firmy z 15 stycznia, która ujawniła, że łączne aktywa w zarządzaniu Grayscale wynosiły 27,1 miliarda dolarów w kryptowalutach.

Wiadomości odbiły się echem w całej przestrzeni zasobów cyfrowych. Prezes CoinCorner szybko zwrócił uwagę na działalność firmy i powiedział :

Charles Edwards, założyciel Capriole Investments, przedstawił kolejny ważny punkt. Po zakupie BTC Edwards zauważył, że Grayscale Investments posiada teraz trzy procent całego Bitcoin Trader w obiegu.

Edwards powiedział, że udziały zarządzającego funduszem rosną o około dziesięć procent każdego miesiąca i przewidywał, że Grayscale może pomieścić dziesięć procent wszystkich bitcoinów w tym roku, pod warunkiem, że firma pozostanie na obecnym torze. Dalej powiedział :

Centralizacja Bitcoin przeniosła się z giełd na ul. Różnica polega na tym, że jest to model jednokierunkowy

Dodatkowo znacząco rośnie AUM firmy inwestycyjnej. Na dzień 14 stycznia Grayscale stwierdził, że jego łączne aktywa pod zarządzaniem (AUM) były warte 25 miliardów dolarów w kryptowalutach.

W ubiegłym roku, w dniu 30 grudnia, w skali szarości za AUM było $ 19 miliardów zasobów cyfrowych. W dniu 29 grudnia 2020 roku firma poinformowała, że ​​jej wartość AUM wzrosła trzykrotnie od 1 listopada 2020 roku, kiedy zarządzała aktywami o wartości 7,6 mld USD.

Prezes Euro Pacific Capital, Peter Schiff , skrytykował Grayscale, a nawet oskarżył zarządzającego aktywami o „pompowanie” Bitcoinów do inwestorów poprzez opłacone reklamy w CNBC . Twierdził nawet, że Grayscale napędza „bańkę bitcoinową”.

Jednak Barry Silbert z Grayscale trafił na Twittera, aby odnieść się do komentarzy Schiffa. Powołując się na niedawny wywiad, w którym Peter Schiff zarzuca kanałowi medialnemu, że jest „kupowany i opłacany” przez firmę, Silbert nazwał komentarze Schiffa „poważnym oskarżeniem”.

Bitcoin upswing fails at 34,000 US dollars

Bitcoin upswing fails at 34,000 US dollars, altcoins also on the rise again

Bitcoin almost climbs back up to 34,000 US dollars, with institutional investors now playing a supporting role again.

Bitcoin’s (BTC) dip below the US$30,000 mark was short-lived, as the Bitcoin Code market-leading cryptocurrency subsequently received a fresh boost, generated in part by a US$10m purchase from MicroStrategy.

As data from Cointelegraph Markets and TradingView shows, Bitcoin made a gain of 4.92% as a result, lifting the price back to an interim high of US$33,866.

As the planned Corona bailout package of the new US administration of Joe Biden takes on more and more concrete features, the narrative around Bitcoin as a reserve currency is also getting new nourishment.

However, the sharp price fluctuations in recent days have led some analysts to conclude that Bitcoin is more of a “cyclical” investment product than a stable hedge. This development is probably due to the fact that with the record run, smaller private investors have again increasingly entered the market.

Market visualisation by Coin360

Even the Bank for International Settlements (BIS) has now taken a liking to digital currencies, which is why the “central bank of central banks” is planning a corresponding platform for the use of central bank digital currencies (CBDCs).

Meanwhile, a key crypto sentiment barometer has switched from “extreme greed” to “fear”, suggesting that investors are selling off for fear of losses. At the same time, this should be seen as a good buying opportunity, because as investment guru Warren Buffett once said, “Buy when there’s blood!”

Institutional investors back in the driver’s seat

Chad Steinglass, the head of trading at CrossTower, suspects that Bitcoin’s rebound was triggered by new US Treasury Secretary Janet Yellen’s negative comments towards cryptocurrencies. However, she has since put them into perspective.

Before Yellen’s crypto-criticism, Bitcoin was still in a price range between 34,000 – 38,000 US dollars, with investors “waiting to see in which direction the price would break out of it”, according to the expert.

El XRP no se rompe por encima de 0,30 dólares

El XRP no se rompe por encima de 0,30 dólares – ¿Qué sigue?

  • El XRP está comerciando dentro de un triángulo simétrico.
  • Hay una resistencia menor a $0.30 y una mayor a $0.47.
  • XRP/BTC está siguiendo una línea de resistencia descendente.

El Proyecto Fideicomiso es un consorcio internacional de organizaciones de noticias que construye estándares de transparencia.

El precio del XRP se está negociando actualmente dentro de Bitcoin Bank un patrón neutro, cuya ruptura/desintegración es probable que determine la dirección de la tendencia.

El XRP/BTC está siguiendo una línea de resistencia descendente. La inversión alcista no se confirmará hasta que el par se rompa.

Este es un análisis de corto plazo. Para el de más largo plazo, haga clic aquí.

Triángulo simétrico

XRP ha estado operando dentro de un triángulo simétrico desde que alcanzó un máximo de 0,385 dólares el 25 de diciembre de 2020. Tanto la línea de resistencia como la de soporte han sido validadas tres veces

En el momento de escribir este artículo, XRP estaba operando muy cerca de la línea de soporte de este triángulo. El triángulo simétrico es un patrón neutro, que permite ya sea una ruptura o una ruptura.

Mientras que los indicadores técnicos son neutrales, XRP está operando por debajo del área de 0,30 dólares, que anteriormente actuaba como soporte y ahora se ha convertido en resistencia. Hasta que logre moverse por encima de ella, la tendencia a corto plazo es bajista.

El movimiento del futuro de XRP

El comerciante de criptodivisas @Crediblecrypto esbozó un gráfico XRP, declarando que es probable que se mueva hacia los 0,46 dólares.

El área de 0,47 dólares anteriormente actuaba como apoyo, y la ruptura que se encuentra a continuación fue el catalizador para la aceleración del movimiento descendente. Además, es el nivel de retroceso de 0,618 Fibras de todo el tramo descendente. Si el XRP logra despejarlo, la tendencia probablemente se volverá alcista.

Sin embargo, XRP se enfrenta actualmente a la resistencia del nivel de retroceso de 0,382 Fibras a 0,35 dólares. Los indicadores técnicos se están volviendo gradualmente al alza, pero aún no han confirmado la reversión.

Un movimiento de precios por encima de la resistencia de 0,35 dólares provocaría que el RSI se mueva por encima de 50 y que el oscilador estocástico forme una cruz alcista. Esto confirmaría de alguna manera la tendencia alcista.

Por lo tanto, mientras que un movimiento por encima de 0,47 dólares indicaría definitivamente que la tendencia a largo plazo es alcista, incluso un aumento por encima de 0,35 dólares sería muy útil para apoyar una inversión de la tendencia.

El gráfico diario muestra que el XRP/BTC ha estado siguiendo una línea de resistencia descendente desde el 24 de noviembre de 2020. En el momento de escribir este artículo, el XRP estaba operando justo por debajo de esta línea de soporte a 760 satosis.

Mientras que los indicadores técnicos en el gráfico diario son alcistas, la reversión no se confirmará hasta que XRP rompa la línea de resistencia descendente debido a la significativa divergencia alcista en el RSI.

Una ruptura probablemente llevaría al XRP hacia el nivel de retroceso de 0,382 Fibras en 2037 satosis.

Conclusión

Para concluir, las lecturas de la acción del precio y del indicador para el XRP son relativamente neutrales. El hecho de que el XRP se desvíe o se aleje del patrón actual probablemente determinará la dirección de la tendencia.

Interview with Cédric O, Secretary of State for the French Digital Transition

In the context of the new regulations concerning the French crypto industry, we interviewed Cédric O, Secretary of State for Digital Transition and Electronic Communications. How does he perceive blockchain technology and its development in France?

How do you perceive blockchain technology?

Our societies and our economies are subject to significant and sometimes contradictory trends. Firstly, by extremely intense technological competition, which sees the whole world engaged in a kind of “arms race”, where the outcome will determine a large part of the prosperity but also the independence of the world’s major economies, especially Europe. Blockchain technologies are part of these disruptive technologies, with considerable areas of applications, from financial matters to energy, from food processing to cultural and creative industries. This is why it is important for Bruno Le Maire and myself that France is at the forefront. But like any innovation, blockchain is a dialectic between innovation and regulation. Innovation is built and grows by breaking with existing frameworks. But in order to thrive, it needs trust, and therefore needs to be regulated. The blockchain is still in the chiaroscuro, and this dialectic can be observed everywhere in the world. The knife edge is even more complicated to find because the increasing complexity of the problems is a challenge on its own for the authorities. But I am optimistic.

This Wednesday, December 9, 2020, France has made a new clampdown regarding crypto assets. How do you justify this toughening?

Crypto assets expose us to increasing risks of money laundering and terrorist financing (ML/TF). The dismantlement, last September, of a Daesh financing network combining crypto assets and electronic money transactions is a reminder of this reality. This is not a problem for France only: successive declarations by the Financial Action Task Force (FATF), the G7 and the G20 have also highlighted the increased risk of criminal misappropriation of crypto assets in the context of the health crisis and beyond. It is in this context that we have taken the ordinance of December 9, which was drawn up in consultation with the actors but also the national representative. The landing point strengthens controls, it’s true, but I would like to remind you that this measure will be completed in a decree that relaxes the conditions for using remote identification devices. The Ministry’s teams are in very regular contact with the ANSSI, the National Assembly and solution providers to ensure that [virtual asset service providers] VASPs will have services that meet their needs as early as this spring. We have therefore tried to find a balanced solution that meets both the security emergency and the operational concerns of the involved parties.wi

Europe is not yet in harmony on these policies; do you understand that some startups are seeking to delocalize to countries that are less restrictive towards crypto assets? And how do you intend to convince them to stay?

First of all, I would like to remind that France is far from being the only European Union country to have gone beyond the fifth anti-money laundering directive when it comes to cryptos. Quite the opposite. Germany and Great Britain have also decided to subject to the ML/TF the entities that offer crypto-crypto services. Denmark is also in the process of adopting such a regulation.

It seems to me that we need to take a holistic approach of the problem. I am the first, sometimes, to protest against the strict rules governing the exercise of financial activities in France. But I can’t help but notice that these rules are also what underpin the competitiveness of Paris, which is part of our country’s strength and at the same time allows us to stay ahead of Frankfurt when it comes to welcoming activities from London. This credibility is an advantage when it comes to creating very large international firms.

In addition, I would like to underline that all European players who wish to target the French market will be required to register with the AMF under the same conditions and deadlines as players established in France. This provision of the Pacte law, recalled by the ordinance of December 9, aims to restore similar competitive conditions on the French market for all companies. There is a strong awareness between Member States and the European Commission on the need to implement everywhere the same rules and procedures applicable to crypto industry. The Minister of Economy, Finance and Recovery will make concrete suggestions to the European Commission to extend the monitoring system established in France.

I would also like to mention that France is one of the rare countries to have a clear legal, fiscal and accounting framework for all the participants in the ecosystem. Furthermore, when possible, we have opted to implement optional measures, such as a visa for ICOs or approval for digital asset service providers. Only those who wish to do so can take the necessary steps. I also want to note that the ecosystem knows how to find high-quality contacts within the administration and supervisors (AMF and ACPR) who can support them in their projects. Finally, France has taken the lead in regulating these activities, which means that it is now influential in European discussions. There is a collective interest in French public authorities and private operators being able to be the driving force behind European regulations.

20 million US dollars lost: Hackers attack the DeFi platform Pickle

A new day, a new DeFi hack. Attackers succeed in extracting 20 million US dollars from a pickle wallet. All about the background of the crime.

The DeFi protocol Pickle Finance has become the target of a hack. As the creators announced via medium on 22 November, unknown persons were able to withdraw a total of 19,759,355 DAI (currently just under 20 million US dollars) from the PickleJar.

The team behind PickleJar does not want to reveal how the attack took place until the editorial deadline. Precautions have been taken to prevent further attacks. However, a further exploitation of the security gap cannot be ruled out. The press release reads accordingly:

While we are working on bug fixes to remove the attack vector, the White Hat group has decided that we should not yet publish details of the actual attack. Although we have taken steps to mitigate further attacks, we do not want to tempt fate in the meantime.

The 20 million DAI tokens are currently lying untouched at the address of the suspected hacker. However, it is unusual that the tokens have not yet been moved. This is because Bitcoin Champion usually start to blur the trail of the tokens immediately after execution by splitting them up into different addresses and then washing them.

All PICKLE investors are affected by the hack. Those who were lucky enough not to have placed their DAI on the affected pJar have now been swept away by the subsequent course exodus. Since the theft became known, the PICKLE token has lost more than 50 percent of its value.

PICKLE: But not the big hit

PICKLE is a DeFi project that uses so-called Pickle Jars in addition to the well-known functions (farming, staking). These are special wallets that are designed to maximise yield farming yields by means of complicated algorithms. In addition to the native PICKLE token, investors can store various other tokens such as UNI in the jars and theoretically multiply them via staking. One of these pJars was cleared during the attack.

The attack is one of a series of attacks against DeFi projects. Most recently, BTC-ECHO reported on Opyn, for example, whose hackers relieved users of several hundred thousand US dollars. The hack of Lendf.Me came to a somewhat happier end. After attackers stole assets worth 25 million US dollars, the hacker returned the full amount to the owners. The reason for this was apparently a successful investigation by the Singpur police.

The attack shows once again that the most important feature of crypto currencies like Bitcoin is its security infrastructure. Especially newly blazing stars in the crypto sky attract fraudsters and hackers who enrich themselves on the ignorance of crypto novices. So you should exercise the greatest possible caution when investing in DeFi.

I spent 1200 bitcoins on items in Warcraft’ reveals Brazilian entrepreneur

Brazilian businessman reveals that he ‘played’ Bitcoin out and spent about 1200 Bitcoins on the game Warcraft

The Brazilian CEO Bitfy, Lucas Schoch, revealed that he even spent 1200 Bitcoins on items in the World of Warcraft game.

In the current value, the amount would be over R$ 121 million, however Schoch, during the podcast Satoshi Connection #16, highlighted that the Bitcoin Era ‘invested’ in Warcraft were spent by him between 2011 and 2013 when the cryptomeda ‘was not worth anything yet’.

“When I found out that I had spent over 1200 BTC on Warcraft items in 2013, I ended up getting extremely frustrated. That year was very hard for me. But I started to understand how that technology was becoming more valuable”.

Bitcoin Mining

Schoch revealed in the podcast that he started mining Bitcoin in 2011 just for use in Warcraft.

“You could buy items from other people using Bitcoin and, in this case, buying with Bitcoins was cheaper than buying with real ones. Because I could leave my computer mining while I worked or did something and when I got home I had 10 Bitcoins and that’s how I started,” he said.

Bitfy’s CEO also revealed other details of Bitcoin’s ‘early days’ stating that at that time there were no wallets or blockchain research and monitoring services.

“Wallet is a very recent business, at that time you ran a script that gave you two hashes, which was your public and private key. Then you used the public key to generate the addresses you could receive [btc] and used the private key to sign the transactions you wanted to transmit later,” Schoch said.

Security

Schoch pointed out that at that time Bitcoin was a ‘nerd’ thing and people didn’t pay much attention to what he could become.

The entrepreneur, for example, revealed that he stored his private keys and addresses in a document on the desktop without any concern about security.

“I would save everything on a Windows notepad and leave everything on my desktop and my keys there, written private key and public key,” he said.

Even, according to him, as there were no services like blockchain.com that allowed to see the status of a transaction many bitcoins ended up being ‘thrown away’.

“At that time you had to create a transaction and have it broadcast and then your node didn’t sync and that transaction ‘disappeared’ and then you thought there was no more bitcoin in that wallet you threw it away. But actually he hadn’t broadcast and his bitcoins were still there. It was all very precarious,” he said.

Regret

But although Bitcoin is a ‘bargaining chip’ in games, Schoch revealed that he ended up regretting his spending on Warcraft.

“I read a story saying that Bitcoin had reached $1,000. So I looked at a friend of mine and said: Isn’t that the currency that was used in the game? That was bizarre but it made me understand many things,” he said.

So, with his experience in being one of Bitcoin’s ‘early adopters’ and the problems he faced, he decided to undertake in the crypto market and created Bitfy.

“I saw that I had lost my millions at that time, because if with this difficulty, that only the fat guy from Warcraft can make a transaction, and still loses money to hell on it, Bitcoin was worth US$ 1,000, it’s because this business will be worth a lot of money when he has a decent user experience,” he concluded.