Prologue: The Myth and Demise of Bitmain
In 1986, in Shaoyang, Hunan, a baby boy was born. His name is Jiang Xinyu, later known as 'Bitmain,' a legendary figure in China's Bitcoin mining industry. His life was like fireworks, brilliant yet brief.
It is no exaggeration to say he is the richest man in Hunan. His Bitcoin wallet is known to hold 74,715 Bitcoins, and by November 2024, with Bitcoin prices nearing $100,000 each, his asset valuation reaches 54.9 billion RMB. However, this wealth has not allowed him to enjoy glory; he may not live to witness the final chapter of his legendary story.
In 2001, 15-year-old Jiang Xinyu was admitted to the Youth Class of the University of Science and Technology of China with a national ranking of 11, becoming the pride of Shaoyang. Today, his name still hangs on the honor roll of his alma mater.
In 2009, he graduated with a master's degree and published a thesis (Constructing a Secure Thread Mechanism Using Formal Methods). Afterwards, he went to Yale University for a visiting study, where his vision and life trajectory underwent a significant change. He keenly captured the enormous potential of Bitcoin mining and became the first in China to develop mining machines and conduct ICO financing. In less than two years, he transformed from a technical genius into a billionaire.
After the first generation of Bitmain mining machines emerged, the network's computing power once exceeded 51%, nearly monopolizing Bitcoin production. However, the pride of genius also led to neglect in technological upgrades. Faced with competitors continuously launching more powerful mining machines, his second-generation product development stagnated, ultimately leading to failure. In 2014, Bitmain disappeared, leaving the world with an unsolvable mystery.
The Ghost of Crypto-Anarchism: The Birth of Bitcoin
The story of Bitcoin originates from a fervent idealism—crypto-anarchism.
In 1992, a small circle birthed the (Crypto-Anarchism Manifesto), which clarified its goal: to protect privacy through cryptography and resist state regulation and commercial monopoly. Years later, Satoshi Nakamoto became the implementer of this idea.
In the wake of the 2008 financial crisis, Satoshi Nakamoto released the Bitcoin white paper on November 1, announcing: 'I am developing a new electronic currency system that is completely decentralized and does not require a trusted third party.' Three months later, he mined the 'genesis block' on a server in Finland, earning 50 Bitcoins, marking the official birth of Bitcoin.
However, Satoshi Nakamoto's utopian ideals did not last long. The combination of human nature and interests turned Bitcoin into a symbol of explosive wealth and a battleground for desire.
Breaking the Mainstream: Bitcoin and Youth from Small Towns in China
Unexpectedly, Bitcoin first entered China not through university geeks but through non-mainstream gaming groups in internet cafes.
In 2010, Bitcoin mining advertisements appeared in some gaming booster QQ groups. 'Install the software, mine for money, and it won't affect your gaming.' A single computer could mine 10 Bitcoins a day, selling at 2-3 yuan each, just enough for one meal.
The non-mainstream youth became China's early Bitcoin miners through these codes. However, this group of young people could not foresee that the Bitcoins they sold would become 'digital gold' of immense value in the future.
The War of Mining Machines and the Rise of Bitmain
The revolution of GPU mining ushered in a new phase, followed by dedicated ASIC mining machines that completely changed the rules. Bitmain quickly sensed the business opportunity. They rapidly raised 16,000 Bitcoins and launched their ASIC mining machines in 2013, dominating the market in a short period.
But the competition in the mining machine market is like a battlefield. As the technical threshold rises, funding and chip supply become key. Bitmain was surpassed by competitors due to supply chain issues and ultimately exited the market. The failure of Bitmain is regrettable, yet it clearly shows future generations that the crypto world is always a game for the strong.
From Mining Farms to Exchanges: The Rise of the Chinese Crypto World
The path of mining machines was cut off, and major shareholder Wu Jihan turned to exchanges, marking the beginning of the rise of China's Bitcoin trading platforms.
In 2013, Xu Mingxing's OKCoin and Li Lin's Huobi emerged. Both platforms quickly attracted users through a no-fee model, even leaving international platforms in the dust. By the end of 2013, Chinese platforms accounted for 80% of global trading volume.
Meanwhile, offline activities in the crypto world were thriving. The Bitcoin offline meetups at 'Garage Coffee' became legendary, and crypto opinion leaders like 'Chang Jia' began to connect resources, facilitating more collaborations and startups.
Wealth and Pitfalls: The Frenzy of Altcoins
Blockchain technology gained widespread attention after 2016, but its potential was quickly exploited by scammers. The rampant proliferation of altcoins led to countless cases of retail investors being scammed.
A company registers a shell corporation, issues a 'shitcoin,' relies on marketing to pump it up, and then harvests profits. Each harvest leaves countless retail investors with nothing. The myths of overnight wealth and total ruin frequently unfold, making the crypto world a concentration camp of greed.
The Rise of Binance: The Legend of Changpeng Zhao and He Yi
In 2017, Changpeng Zhao and He Yi founded Binance, which overturned the global trading market landscape. Leveraging China's ban to 'overtake on a curve,' Binance quickly occupied the global market, becoming the world's largest virtual currency trading platform. In 2022, Zhao Changpeng topped the list of Chinese billionaires with assets of $94.1 billion.
But the price of great wealth is endless regulatory crackdowns. The U.S. SEC brought 13 charges against Binance, and Zhao Changpeng eventually pleaded guilty and paid hefty fines, even serving time in prison. Binance transformed from an ideal bearer of crypto-anarchism into a target of global regulation.
The Final Chapter: Technology is Neutral, but Human Nature is Hard to Test
Looking back on a decade in the crypto world, Bitcoin itself has no good or evil as a technology. However, when combined with human nature, the outcomes are unpredictable.
The decentralized concept of Bitcoin is a utopian attempt, but it has also become a breeding ground for speculation, fraud, and wealth disparity. As someone said: Bitcoin itself is not wrong; it is human nature that is to blame.
Perhaps what Satoshi Nakamoto designed was not a perfect currency, but a mirror reflecting human desires. Between desire and ideals, this saga of enmity and affection will continue endlessly (Original text by Luke Wen Studio).
