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A recent development in the cryptocurrency world has sparked considerable interest: billionaire entrepreneur Peter Thiel has hinted that he may have met the individual or group behind the pseudonym Satoshi Nakamoto, the creator of Bitcoin.

Thiel asserts that this encounter took place at a financial cryptography conference in Anguilla 23 years ago.

This revelation comes as Thiel's associate, Balaji Srinivasan, speculates that Bitcoin could achieve a value of $1 million.

Given Thiel's connections at the time, which included Elon Musk, the PayPal Mafia, E-Gold founders, Srinivasan, and Vitalik Buterin, it is plausible that Thiel crossed paths with Satoshi.

The extent of their connection, however, remains uncertain.

Thiel reminisced, "I met them on the beach in Anguilla in February of 2000. We were initiating a revolution against central banks... We intended to make PayPal compatible with E-Gold and overthrow all central banks."

E-Gold came to an end in 2007 when the US Justice Department shut down the project and arrested its founders for unregistered money transmission. The fallout and forfeitures from E-Gold persisted for over seven more years.

The Financial Cryptography conference, a long-standing gathering for cypherpunks, could have offered abundant inspiration for Nakamoto's Bitcoin vision.

Researchers at the conference presented papers like "Electronic Cash Technology Will Denationalise Money" and "Efficient Electronic Cash with Restricted Privacy."

Thiel posits that Satoshi must have gleaned insights from E-Cash, such as circumventing formal organizational structures and adopting MIT's Open Source Licence for Bitcoin.

Thiel was a member of the 'PayPal Mafia' that formed in the early 2000s, consisting of FinTech start-up entrepreneurs who accumulated significant wealth through dot-com startups and IPOs.

Prominent individuals included Elon Musk, X.com founder and early supporter of Bitcoin and Dogecoin, and Balaji Srinivasan, former Coinbase CTO and General Partner at Andreessen Horowitz (a16z).

Srinivasan has recently attracted attention for wagering that Bitcoin will reach $1 million due to potential US hyperinflation, although some suggest this might be a publicity stunt.

Longtime friends Srinivasan and Thiel share a mutual disdain for the US Banking System and an interest in Seasteading. Both contend that Bitcoin requires a sovereign nation to avoid regulation.

Thiel's Founders Fund astutely relocated billions of dollars from SVB mere days before its catastrophic bank run in an attempt to avoid the crisis.

While some dismiss Thiel's assertions, others highlight reports of him selling his Bitcoin holdings. Regardless of his current involvement in cryptocurrency, Thiel undeniably played a part in the early Financial Cryptography community and continues to criticize banks.

At the 2022 Bitcoin Miami conference, Thiel publicly demonstrated his distrust of the US dollar by tearing up $100 bills while berating the banking system.

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New Report Suggests Billionaire Peter Thiel is Connected to Bitcoin ... - Cryptonews

In 2009,Satoshi Nakamotofounded the cryptocurrency Bitcoin BTC/USD.Here's alook back at the pseudonymous creator and the price history of the leading cryptocurrency.

What Happened: In October 2008,Nakamotopublished a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System. It provided many key details and explained why Bitcoin was being created.

In January 2009, Nakamoto mined thegenesis block of Bitcoin, and the first 50 Bitcoins were mined.

When Bitcoin was released, there were only two ways to get the cryptocurrency: You could either mine theBitcoin yourself or usea peer-to-peer transaction. Bitcointalk, a forum created by Nakamoto tohost discussions on Bitcoin,was used for several transactions, which were deemed risky at the time becausethey required trust from both parties that were mostly anonymous.

In October 2009, one of the first ever recognized Bitcoin transactions happened whena Finnish computer science student sold5,050 Bitcoin for $5.02 (which representeda value of $0.0009 for each Bitcoin), according toForbes. The transaction took place on PayPal PYPL.

Less than ayear later, in May 2010, one of the most famous Bitcoin transactions of all-time and what is widely believed to be the first retail transaction took place when programmer Laszlo Hanyecz sought out a person to buy him pizza in exchange for Bitcoin. Aperson in England subsequently spentaround $41 to buy Papa Johns PZZA pizza in exchange for 10,000 Bitcoin.

Ill pay 10,000 bitcoins for a couple of pizzas, like maybe 2 large ones so I have some left over the next day, Hanyecz said in the infamousonline post.

Now known as Bitcoin Pizza Day, May 22 pays tribute to the day of that veryfamous Bitcoin transaction. At the time, Bitcoin had a value of around $0.0041.

It wasn't until 2011 and after the launch of several major crypto exchanges that the cryptocurrencyhit a price of $1.

Related Link: How To Buy Bitcoin

Investing $1,000 in Bitcoin: Using the early transactions referenced above, a hypothetical investment in Bitcoin in the early days could have provided quite the return for its holder, or in this case a hodler.

A $1,000 investment in Bitcoin at the time of the first transaction on PayPal would have netted1,111,111.11 Bitcoin, even though that amount of cryptocurrency probably wouldn't have been available due to mining constraints.That$1,000 investment would be worth $30,949,777,746.80 today based on a price of $27,854.80 for Bitcoin at the time of writing.

In contrast, a$1,000 investment in Bitcoin at the time of the Bitcoin-pizza transaction would have netted 243,902.44 BTC. That investment would be worth $6,793,853,685.71 today based on the sameprice of $27,854.80 at the time of writing.

Read Next: 13 Fun Facts You May Not Know About Bitcoin

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If You Invested $1000 In Bitcoin When It Launched, Here's How ... - Benzinga

The initial generation of blockchain is called Blockchain 1.0 which was a simple form of decentralized ledger. The first generation of blockchain relies on the Proof-of-Work (PoW) consensus mechanism and helps in making digital transactions while storing transaction details across several nodes (computers) on the blockchain. This first generation includes cryptocurrencies like Bitcoin, Dogecoin, and Litecoin, etc.

This decentralized financial (DeFi) system was successful and served as the base for other cryptocurrency projects. Dogecoin and Litecoin are two early forks of Bitcoin. They simply changed the logo and hash function (it is a cryptographic algorithm that converts any digital data into an output string with a fixed number of characters) from SHA256 to a more memory efficient scrypt algorithm.

The main motive of the first generation was to replace or improve the existing traditional financial systems. Instead of relying on third parties, users could directly transfer funds by paying a small amount as transaction fees (or gas fees). The network is a decentralized system, without any central authority, and helps in keeping the network transparent.

Bitcoin also played an essential role in the development of cryptocurrency exchanges like Coinbase, Kraken and Binance, apart from processing transactions on the digital network. The developer of Bitcoin is Satoshi Nakamoto, who brought this revolutionary technology to replace financial systems. Blockchain was set up on a shared public ledger that supported Bitcoin.

However, the first generation was only limited to simple trading and it was difficult to add terms and conditions to the transaction. The second generation of cryptocurrency, Ethereum, addressed this problem by introducing the concept of smart contracts. Smart contracts make transactions more safe and secure, and function in an organized manner. Smart contracts are actually protocols for automated transactions that are stored on a blockchain. The contract is triggered after a certain condition is met. This innovative technology helps in faster payments, is more secure and less expensive.

Ethereum turned out to be a game-changer against Bitcoin, as it is based on Javascript codes and provides a much wider range of functionalities. Ethereum was created by Vitaly Dmitrievich Buterin, popularly known as Vitalik Buterin. The Ethereum blockchain supports the creation of decentralized applications (dApps) and smart contracts that enable trust agreements to be safely processed.

Ethereum has created a trustless way to transact through smart contracts and has expanded its support to the development of several NFT projects. One key feature is that it offers a complete programming language named Solidity, which can be used by developers to create and deploy their own dApp. Ethereum has also allowed developers to launch their own cryptocurrency projects, creating an entire digital ecosystem.

Previously, Ethereum had a PoW consensus mechanism which required intensive computational energy to validate transactions. In September 2022, Ethereum officially shifted to Proof-of-Stake (PoS) consensus because its less energy intensive. Ethereum is set to launch the Shanghai upgrade on 12th April, 2023, to give users access to their staked ether funds for the very first time.

Cryptocurrencies were initially developed to make transactions faster, secure and transparent on the blockchain.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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The Differences Between 1st and 2nd Generation Cryptocurrencies - The Coin Republic

Source: Bitcoin BTC

Central Banks cannot sit idle and do nothing when the banking industry under them their watch is imploding. This fact holds true even for the United States Federal Reserve and the actions from these central banks are notably a boon for the price of Bitcoin (BTC) and by extension the majority of altcoins around today.

As reported by Coindesk, citing data from Morgan Stanley analysts, Bitcoin has rallied upward in recent days following the expectations of increased cash liquidity the Feds are injecting to bail out the distressed banks in the country.

Earlier this month, Wall Street saw a cataclysmic ripple effect amongst three major banks including Silvergate Bank, Signature Bank, and ultimately Silicon Valley Bank. The collapse of these three financial institutions was considered the biggest banking implosion since the great financial crisis of 2008.

As a Federal Deposit Insurance Corporation (FDIC) regulated bank, the regulator, backed by the duo of the Treasury Department and the Federal Reserve, a Federal Emergency Fund dubbed Bank Term Funding Program (BTFP) was launched to help relieve the burden on the collapsed banks per their deposit customers.

This move awashed the economy with excess cash flow which is first devalued and further makes risk assets like Bitcoin to become relatively more attractive. In all of this, Morgan Stanley analysts believe Bitcoin has benefitted overall.

Bitcoin trading order book liquidity is at the lowest level in a year, meaning lower volumes can drive larger price moves than before, analysts led by Sheena Shah wrote.

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According to the findings from the analysts, the dominance of Binance in the industry now implies that traders from the exchange control the daily price of the asset. This is because Binance holds about an 80% dominance on the digital currency trade volume.

Since Satoshi Nakamoto introduced Bitcoin, the digital currency has always had a very resounding price comeback, such that many observers are often dismayed by its unpredictable nature.

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At the time of writing, the digital currency is down by 4.17% to $26,705.78, after rising as high as $28,803.34 over the trailing 7-day period according to data from Marketcap. It should be noted that Bitcoin has the positive fundamentals as well as the technical backing to breach the psychologically important level of $30,000.

There have been warnings that the consistent increment in the interest rate hike can further drag the economy and the banks into a tougher position that might fuel more banks filing for bankruptcy. Bitcoin wins either option the Fed chooses to trial as a dovish approach to fight inflation will also benefit Bitcoin in the mid to long term eventually.

Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.

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Dollar liquidity to support the banking sector is aiding Bitcoin rally - Crypto News Flash

Tesla CEO Elon Musk has pointed to the most serious looming issue in the banking system in a new tweet. On Twitter, Musk was responding to an analysis by The Kobeissi Letter, which noted that more than $2.5 trillion in commercial real estate debt will come due in the next five years.

As the analysts state, this is by far more than any other five-year period in history. Meanwhile, rates have more than doubled and commercial real estate is only 60-70% occupied. Refinancing these loans is going to be incredibly expensive and likely lead to the next major crisis, The Kobeissi Letter explains.

The worst part, however, is that the small banks, which are currently struggling badly, are at the center of this crisis as well. 70% of commercial real estate loans are made by small banks.

This is by far the most serious looming issue. Mortgages too, wrote Elon Musk, who has commented on the US banking crisis several times in recent weeks, calling for all banks to be protected by the FDIC, something Treasury Secretary Janet Yellen has refused to do.

The analysts at The Kobeissi Letter responded to Elon Musk, saying that from the banking crisis to a commercial real estate crisis, the US Federal Reserve (Fed) is playing an important role by raising interest rates too quickly.

As Elon Musk notes, falling commercial mortgage bond prices are a growing problem for smaller banks, which are already suffering from declining demand for commercial real estate and fleeing depositors.

Meanwhile, interest rates have more than doubled, making refinancing these loans much more difficult and costly. At the same time, occupancy rates for commercial real estate are only 60-70%, putting additional pressure on the market.

This difficult situation could lead to a major new financial crisis, as refinancing the loans under these conditions is extremely expensive and risky.

As Scott Rechler, Chairman & CEO of RXR and Director at the NY Fed, admitted in a recent Twitter thread, most of this debt was financed when prime rates were near zero. This debt must be refinanced in an environment where interest rates are higher, values are lower, and the market is less liquid.

Rechner therefore calls for a program that provides lenders the leeway and the flexibility from regulators to work with borrowers to develop responsible, constructive refinancing plans. A similar program was implemented in 2009 and during the heat of COVID-19.

At the same time, Rechner warns of a serious systemic crisis in the banking system, especially regional banks. We have been experiencing a proverbial slow-moving train wreck that has been picking up speed throughout this past year with the unprecedented spike in interest rates, explained Rechner who added:

The events of the last couple of weeks highlight that the train is now out of control. We need to slow the train down and take the proper precautions to minimize the damage.

For Bitcoin, this could be a turning point, as has already been demonstrated with the collapse of Silicon Valley Bank (SVB). As the banking crisis unfolds, possibly surpassing the great financial crisis of 2008 that led Satoshi Nakamoto to create Bitcoin, the need for a decentralized, permission-free freedom money may become clearer to many.

If banks continue to fall like dominoes, this will likely have a significant impact on the value of Bitcoin. People will turn to Bitcoin to protect their wealth. As Mike McGlone, senior commodity strategist for Bloomberg Intelligence, recently explained, Bitcoin is turning into a higher beta version of gold in the face of the banking crisis.

At press time, the Bitcoin price stood at $27,832, further consolidating below the key resistance around $28,700.

Featured image from iStock, chart from TradingView.com

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Elon Musk Points Out Most Serious Looming Issue In Banking, Bitcoin To Moon? - NewsBTC