Why Everything That Should Hurt Bitcoin Only Makes It Stronger

AttackBitcoin

Original post by: Tomer Strolight

Bitcoin loves being attacked. Bitcoin especially likes it when something tries to kill it. And it’s also very fond of people trying to ban it or trying to replace it with something “better”. When it comes to attacks on Bitcoin, the question isn’t “what’s going to kill Bitcoin?”; it’s “what’s going to make Bitcoin bigger, stronger, better, and more valuable?”.

Bitcoin Thrives When Attacked.

Bitcoin was born with many capabilities that protect it against the kinds of attacks that would instantly damage or destroy any person, company or country. (Yes, Bitcoin could survive a nuclear attack). Bitcoin can also develop new defences that it previously lacked. It can add or learn new capabilities because it is software and it strongly incentivizes people who own bitcoins to create and install these defences.

Bitcoin is the Greatest Gladiator the World Has Seen.

All of Bitcoin’s battles take place out in the open. Each time Bitcoin successfully fends off a new attack in the real world, the whole world gets to see that Bitcoin is invulnerable to yet one more thing. As a result, observers can all see that Bitcoin has proven itself to be stronger than was believed. Some of these witnesses then begin to use Bitcoin, or to use it more than they had previously. This makes Bitcoin more valuable. When Bitcoin becomes more valuable, that usually attracts new attackers, allowing this glorious process to begin anew.

Even when it comes to the very people who are attacking Bitcoin, or those cheering them on, Bitcoin does not prevent them from using it when the attack is over; nor even during the attack for that matter. Bitcoin welcomes all its enemies as equally as it does its allies. Bitcoin is always ready to make peace with everyone, even with those who fought against it. Bitcoin holds no grudges against anyone and will treat its enemies exactly as it treats everyone else.

Bitcoin Grows From Being Attacked

One of the most significant ways Bitcoin grows is by proving itself capable of adapting to and surviving attacks.

Many corporations and institutions are beginning to store their wealth in Bitcoin precisely for this reason. They once expected Bitcoin to die. In fact many of them expected it to die because they tried to kill it by preventing their customers from accessing it. They now see that this strategy only hurt themselves, not Bitcoin. So now they are coming around, and in so doing, they are making Bitcoin more valuable and more widely adopted.

The same is true of people who developed and invested in competitors to Bitcoin, expecting to kill it by replacing it. They couldn’t match Bitcoin’s unique features, but Bitcoin could patch into itself any improvements they may actually have had.

Not every attack is easily defeated. Bitcoin has been through some very frightening and drawn out battles. The most severe of these, in my opinion, was when powerful people within Bitcoin’s ecosystem tried to betray it. But even in that worst case example, Bitcoin dealt a lesson to all involved — enemy and ally alike — that it could resist such an attack. As such, it has demonstrated to all those stakeholders that it is pointless to mount such an attack ever again.

Attack Bitcoin, Please

This article is not meant to discourage anyone from attacking Bitcoin if they have some clever attack planned. Instead, it asks that they please do attack it and give it their very best shot. It’s for the good of Bitcoin.

Bitcoin Sees the Light of Day in a National World’s First

Geothermal Bitcoin Mining

By: Bachir El Barraj

El Salvador has been a country suffering from civil war, economic ruin and high organized crime & murder rates for much of its modern life. Yet the 39 yr old El Salvadorian President, Nayib Bukele, who enjoys a super-majority of his party in parliament, in a world’s first, enacted law making Bitcoin legal tender in his nation.

Since 2001 El Salvador has done away with its local currency, the Colon, and instead decided to use The US Dollar as legal tender. With Bitcoin also now as legal tender, El Salvador is paving the way to assure the nation’s future going forward into an uncertain geopolitical climate.

Stating the ease of payments and remittances which much of the country depends on, as well as the fact that many El Salvadorians aren’t banked, Bukele sees Bitcoin as the ideal solution.

It doesn’t stop with making Bitcoin legal tender. Bukele asked the state owned geothermal energy firm, LaGeo, to devise plans for offering Bitcoin mining facilities to Bitcoin miners who want to use the nation’s geothermal energy resources to run their mining farms. To be able to attract these miners, El Salvador, according to journalist Max Keiser, is also offering permanent residence for Bitcoiners who are willing to dedicate BTC 3.

This, first-time, comprehensive all-round adoption of Bitcoin by a whole nation is the light Bitcoiners have been waiting to see in a long time, and just as the first domino falls, we also envision many nations that will follow in the path set by El Salvador.

Seven Surprising Facts About Bitcoin Pizza Day

Original Post by: Pete Rizzo

The Bitcoin Pizza Day story is one of the technology’s most historic tales, but even if you know the Bitcoin pizza price, these facts might surprise you.

May 22 is now forever known as Bitcoin Pizza Day, the holiday marking the date in 2010 when the first real-world good was bought with the first decentralized digital money. 

Yet like every holiday, be it Thanksgiving or Valentine’s Day, Bitcoin Pizza Day might say more about those celebrating it today than any of the actual historical facts. Indeed, there remain those who view the holiday as passé or even against the values of the Bitcoin community.

What remains true is that by May 2010, Bitcoin had a small, but growing economy, one where bitcoin were still mostly traded peer-to-peer and on some small exchanges.

Eager to push the frontier of Bitcoin commerce further, Laszlo Hanyecz, an early developer and miner, put out the call that he was willing and ready to pay 10,000 BTC for two pizzas, should someone be willing to take him up on the trade. 

Bitcoin user Jeremy “Jercos” Sturdivant would agree to the terms, and two Papa John’s pies would arrive at Hanyecz’s house shortly thereafter. History was made — but some supporting facts have been lost to time.

In honor of the 11th anniversary of Bitcoin Pizza Day, we’ve compiled a list of lesser-known facts about what’s perhaps the most famous of Bitcoin holidays.

At this year’s bitcoin price high of $63,000, the two pizzas were worth $630 million.


1) 10,000 BTC Was Worth Just $41 at the Time of Purchase

Though data on the early Bitcoin economy is getting hard to come by, according to Bitcoin user ender_X, Hanyecz could have traded his bitcoin on an exchange for U.S. dollars … about $41 to be exact. Should the figures be accurate, that puts the price per bitcoin at roughly $0.004 — or four-thousandths of a penny — at the time of sale.

While that figure isn’t exactly zero, the price was low enough for ender_X to think Hanyecz might be getting the better of the deal, his post ending with the quip — “good luck on getting your free pizza.”

2) Hanyecz Had to Wait Four Days to Get His Pies

Sure, it’s not as impressive as Satoshi waiting nearly 11 months for bitcoin to establish a price, but by conventional food delivery standards, Hanyecz waited a while for his order. 

In fact, Hanyecz first posted on the Bitcoin.org forums on Tuesday, May 18, at the time writing

“I’ll pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day. I like having left over pizza to nibble on later … If you’re interested please let me know and we can work out a deal.”

Even so, he didn’t end up getting his pizza until Saturday. By Friday, some were even led to reach out about Hanyecz’s health, with user BitcoinFX asking if he was “getting hungry.”

“I just think it would be interesting if I could say that I paid for a pizza in bitcoins,” Hanyecz replied.

Jercos would help him complete the delivery the next day, the transaction taking place at around 2:16 p.m. EST, according to records supported by Bitcoin Talk.

3) Hanyecz Bought More Than Two Pizzas for Bitcoin

Hanyecz didn’t just stop with two pizzas, however. Enticed by the response, Hanyecz sought to push the limit in June, adding to his post that the deal was “an open offer.”

“I will trade 10,000 BTC for 2 of these pizzas any time as long as I have the funds (I usually have plenty),” he wrote on June 12. “If anyone is interested please let me know.”

Rumor has it that there were other pizza-order exchanges, and there’s some evidence to hint this might be the case, with Hanyecz bringing his open offer to a close in August. 

“Well I didn’t expect this to be so popular but I can’t really afford to keep doing it since I can’t generate thousands of coins a day anymore,” he wrote. “Thanks to everyone who bought me pizza already but I’m kind of holding off on doing any more of these for now.”

That’s not to say he put his pizza-buying past behind him fully. In 2018, Laszlo became the first person to buy a pizza over the Lightning Network, though he paid just 0.00649 BTC at the time.

4) Jercos Eventually Sold His Bitcoin

As the Bitcoin Pizza Day holiday grew, it wasn’t long before Jeremy “Jercos” Sturdivant would be thrust back into the limelight. He’d give his only interview to a website called “Bitcoin Who’s Who” in 2015, five years after the trade.

To the likely dismay of current HODLers, Sturdivant said at the time “a currency is meant to be spent,” noting that the 10,000 BTC he received “made it back into the economy quickly” by the time they were worth about $400 in total. 

“Naturally there will always be people hoarding coins, trying to get rich, and quite a few people did get quite rich, but they wouldn’t have got that way without economic growth allowing it,” he said, noting he felt Bitcoin was meant to be more akin to a PayPal or Stripe. 

Sturdivant added some other notable details about the transaction, which he says was finalized over IRC while noting he was just 19 years old at the time of the trade.

5) Bitcoin Pizza Day Wasn’t Widely Celebrated at First

While Bitcoin Pizza Day is widely known today, records about any celebrations are scarce before 2014. That isn’t exactly surprising, as before 2013 awareness of Bitcoin was low. 

It appears that Hanyecz’s story was popularized in part by a New York Times article and subsequently boosted in 2014 by a blog and tweet from the @Bitcoin twitter handle. 

Due to the price of bitcoin, then testing $1,000, the story went national in the U.S., with major media outlets like ABC News joining TechCrunchSlate and The Wall Street Journalin popularizing the transaction.

Still, as on display in the WSJ post, there was a certain slant taken, with the holiday popularized as a way to scold “bitcoin hoarders” who wanted to use the technology as a store of value as opposed to a payment method, a tension among users that continues to this day.

6) Bitcoin Pizza Day Wasn’t The First “Bitcoin Holiday”

That’s right, Bitcoiners have been creating holidays for almost as long as the technology has been around, the first commemorative date set in 2011. 

At the time, Bitcoin users were keen to mark the disappearance of Bitcoin creator Satoshi Nakamoto, who had recently stepped down from his role as project lead, declaring April 28, 2011, “Satoshi Disappear Day.” 

“I propose we make a bitcoin holiday in honor of our legendary anonymous founder and to observe the fact that the bitcoin community will be just fine after the inventor of bitcoin left,” wrote user Kiba at the time.

Though Bitcoin Pizza Day occurred a bit earlier, it took some time for it to become a holiday, most likely because the price had yet to really rise. It’s worth noting also that Bitcoin Pizza Day in some ways seems to coincide with the “Bitcoin for payments” narrative pushed by industry businesses from 2014 through 2016.

7) You Can Still See The Pictures of The Real Bitcoin Pizzas

Wondering what multimillion-dollar pizzas actually looked like? Wonder no more.

Thanks to Hanyecz’s penchant for photography, we have well-kept records of just what these expensive pies looked like at the time they were eaten in 2010. 

Hanyecz posted a total of five pictures of his food, which appear to have a variety of less than traditional toppings, including olives, jalapeños, whole tomatoes and more. 

First Bitcoin Pizza

Crypto Slides After CFTC Probes Binance On Derivative Trades

Original post by: Tyler Durden

Crypto markets are sliding this morning following headlines that the CFTC is investigating whether the world’s largest cryptocurrency exchange Binance, which isn’t registered with the agency, allowed Americans to buy crypto ‘derivatives’ – which are regulated by the CFTC – and over ‘know your customer’ regulations.

Bitcoin slid back below $56k, plunging by $1000 in minutes.

Ethereum – the token behind the NFT craze – dipped below $1750…

In response to the probe, Binance told Bloomberg that it never comments on its communications with regulators, while adding that the company is committed to complying with rules. For instance, Binance blocks U.S. residents from its website and uses advanced technology to analyze deposits and withdrawals for signs of illicit transactions, the company said in a statement.

“We take a collaborative approach in working with regulators around the world and we take our compliance obligations very seriously,” Binance said. The CFTC declined to comment.

The investigation adds to the U.S.’s growing crackdown on crypto. The CFTC has already sued BitMEX for failing to register as a broker, with the exchange’s market share declining since it became a target of regulatory scrutiny. Coinbase Global Inc., the U.S.’s biggest crypto exchange, also disclosed last month that it’s responding to a wide-ranging CFTC probe.

Of course, such regulatory interventions always end up amounting to nothing as those who have followed crypto trading in the past five years know too well (only the Fed tightening monetary policy can burst the bitcoin bubble). Furthermore with a growing number of institutions now adopting crypto, it will be virtually impossible for regulators to squash the sector now that even vain Hollywood artists have adopted it in hopes of peddling their idiotic NFTs.

As such, we expect any dip in crypto to be promptly purchased by the growing number of institutions seeking a cheaper entry price.