Home / Crypto Currency / Ethereum Co-Founder Invested in Bitcoin at $1 in 2011, What’s Changed?

Ethereum Co-Founder Invested in Bitcoin at $1 in 2011, What’s Changed?


Charles Hoskinson Ethereum Cardano

Advertisement

Charles Hoskinson, the co-founder of Ethereum and Cardano, entered the cryptocurrency sector when Bitcoin was valued at just over $1. Since then, the infrastructure supporting the market and blockchain systems has changed drastically, at an exponential rate.

Bitcoin price in 2011, chart provided by 99Bitcoins

In an interview with Mpho Dagada, Hoskinson, the CEO of IOHK, a technology company that leads the development of Cardano (ADA) and Ethereum Classic (ETC), said that he first engaged in the cryptocurrency sector by mining Bitcoin in 2011, when the dominant cryptocurrency was worth about $1.

In 2013, as the price of Bitcoin increased by 250-fold from $1 to $250, Hoskinson decided to be involved in the sector, with passion to lead major projects.

Meeting Vitalik Buterin, After Differences With EOS CTO Dan Larimer

Initially, Hoskinson revealed that he was approached a Chinese entrepreneur to create a stablecoin for $500,000 in funding. At the time, Tether (USDT) was not around, and there were no stablecoins in the market investors could utilize to hedge the value of cryptocurrencies to that of the US dollar.

After rejecting the offer, Hoskinson met Dan Larimer, the creator of BitShares, to work on the first decentralized cryptocurrency exchange platform. However, Hoskinson eventually left the company due to the differences between himself and Larimer, and met Anthony Di Iorio and Vitalik Buterin to create Ethereum.

Hoskinson said:

“[Anthony told me] There’s this kid called Vitalik, at that time he was 19, and he’s writen this great white paper. I can’t really make heads or tails of it. Can you read it? Let me know what you think. And I said sure, Anthony. So I read the paper, was very rough but I said, there’s something here and that’s how I met Vitalik Buterin.”

In 2014, at the North American Bitcoin Conference in January of 2014, Hoskinson and the rest of the founding members of Ethereum including Buterin, Di Iorio, Joseph Lubin, and Gavin Wood met, to officially develop and launch Ethereum.

“The North American Bitcoin conference in January 2014. So Anthony rented a beach house, we all bought her own way. There we met everybody, Joseph Lubin, Gavin Wood came, a lot of the big guys now who were not so big guys back then came and that was really the birth of a Ethereum,” Hoskinson added.

4 Years of Exponential Growth

Since 2014, the cryptocurrency sector has demonstrated exponential improvement in market infrastructure, blockchain systems, and scalability. The launch of Ethereum in 2014 paved the first path towards decentralized applications (dApps) and the first decentralized computing system in the world.

Ethereum also enabled the initial coin offering (ICO) market, which enabled blockchain projects to raise billions of dollars to develop blockchain protocols. Interestingly, EOS, the biggest ICO in history having raised over $4 billion, was led by Dan Larimer.

After founding Ethereum, Hoskinson launched Cardano in 2015, the first Proof-of-Stake (PoS) blockchain protocol, built specifically to handle dApps and payments with two seperate layers to maximize scalability.

In parallel to massive progress in development, the price of Bitcoin achieved a new all-time high at $19,500. Although Bitcoin has fallen to $6,500 in the past nine months, since 2011, Bitcoin has demonstrated a 6,500-fold return.

The largest regulated financial institutions like Citigroup, Morgan Stanley, and Goldman Sachs have started to commit to cryptocurrencies, with increasing interest from investment firms and institutions.

Featured Image from IOHK/YouTube

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.