The Most Dangerous Man In Crypto


Hello Crypto Gang!
Welcome to another Lambo Life video with Evan.
This video is about someone who is a threat
to the entire crypto space; especially to
the top coins like Bitcoin and Bitcoin Cash.
He is respected by a few, but hated by many.
He’s not very famous.
He doesn’t dress fancily.
He barely has any recorded interviews and
he rarely spoke in crypto conferences until
very recently.
His desire seems to be working in the shadows,
faded from view.
He likely holds the most power and influence
in the crypto space today.
I’m talking about Jihan Wu, co-founder and
CEO of Bitmain.
In the last few months it’s been harder for
Jihan to keep a low profile as much as he
may hate it.
A lot of news websites like Bitcoin.com and
Cointelegraph have started to profile him
as the world is starting to scrutinize this
32 year old Bitcoin Billionaire.
Indeed there are many other threats to the
crypto market’s existence…but this video
is not about them.
They are external threats.
This one is not only an internal threat, but
he is at the center of the crypto space itself
and holds a lot of influence, its scary.
Before we get to the main point of the video.
Let me give you a short background.
Jihan was born 1986 in an unknown town in
China.
Little is known about his distant past but
he is currently based in Beijing.
He studied at Peking University with a double
major in Psychology and Economics.
He was once an Investment Manager at China
Grand Prosperity Investment, a private equity
firm in 2009.
Later, he moved on to become a financial analyst.
Jihan first discovered Bitcoin in 2011.
While reading Satoshi’s whitepaper he was
drawn to Satoshi’s vision of Bitcoin that
he decided to create the first Chinese translation
of the Bitcoin whitepaper.
He later founded the Chinese Bitcoin news
website, 8btc.com, which is still operational
to this day.
It was in this website that Jihan proved his
expertise as he explained the fundamentals
and value of Bitcoin.
These initial efforts brought him to the main
stage of Bitcoin in China.
So how did his company start?
In 2013, Wu met up with chip designer Micree
Zhan at a local restaurant.
Zhan had pitched Jihan years earlier on an
investment in his startup but now, Jihan is
proposing to start a chip company.
Zhan’s startup was struggling at the time;
the next day he called Jihan saying he was
in.
This was the start of the global chip manufacturing
empire that would dominate the crypto space
today.
Jihan is the proud CEO of the ASIC chip manufacturing
company, Bitmain.
To those who dont know what an ASIC chip is.
It is short for Application-specific Integrated
Circuit.
It is used for mining Bitcoin and other cryptocurrencies.
What makes it special is that it is extremely
energy efficient and has phenomental computing
power.
Compared to an ordinary GPU or CPU, mining
on ASICs consumes less electricity and provides
more hash power.
For that reason, mining on GPUs and CPUs became
less and less profitable forcing miners to
purchase an ASIC to remain competitive.
Bitmain produced one of the earliest and most
popular ASIC miners, and this brought Jihan
to the top of chip mining industry.
In February 2018, Bitmain held 70-80 percent
of the global market for mining hardware and
boasted $4 billion in operating profits last
2017–higher than the giant American GPU manufacturer
Nvidia.
Bitmain’s private valuation is $12 billion.
Of course, Jihan refuses to share how much
his net worth is.
So what part of this makes Jihan dangerous?
. . . . . the part where his company may be
doing more than just manufacturing ASIC chips.
Jihan has been accused of many sneaky and
malicious deeds like attacking other crypto
networks, abusing his influence to control
Bitcoin, monopolizing majority of the Bitcoin
and Bitcoin Cash hashrate, mining with their
brand new chip before releasing the model
to the market, among many other things.
This video is not about accusations.
There is enough of that going around… rather
this video is about recognizing the potential
dangers of having this company at the center
of the crypto space.
Last 2017, before Bitcoin forked into BTC
and BCH or Bitcoin Cash, there was a big debate
in
the bitcoin community.
This debate is still ongoing today but let’s
focus on what transpired last year in the
events of Jihan’s conspiracy.
At that time, Bitcoin had a problem.
The network effect, which caused Bitcoin to
explode in popularity in turn became network
congestion, where the network was carrying
more data that it can handle.
This made Bitcoin transactions slower and
leveraged miners to charge a high fee for
transactions.
They had to fix this through scaling, allowing
the network to handle more data.
The safest way to do this was through a soft
fork upgrade into Segrated Witness or Segwit
for short.
This would allow backwards compatibility and
overall a lot safer to do.
This was the most logical thing to move forward
to at that time.
However, Jihan opposed this!
But why?
Seemingly no reason at all.
Of course the Bitcoin community pressured
him to accept this.
Instead, he pushed the decision to do a hard
fork- irreversibly splitting the network.
This posed a lot of risk and wasn’t very logical
to do considering a soft fork would do the
same job with less risk.
He had a lot of influence being the CEO of
the company that holds majority of the world’s
Bitcoin hashrate.. but why would he do something
that could put his business at risk not to
mention the entire network of bitcoin?
This is where it gets controversial…
Let me be the first to admit that I do not
know exactly what goes on in the mind of Jihan
but I can only deduce his motives slightly
through his behaviour pattern.
It all started with Greg Maxwell allegations.
Greg is the CTO of Blockstream, a blockchain
company that provides funding for the development
of Bitcoin Core, the predominant software
implementation of the Bitcoin network.
In an email sent to other Bitcoin developers,
Greg revealed that there was a method to give
miners an unfair advantage over other miners.
This comes in the form of a method called
AsicBoost, which allows a miner using it to
exploit a design flaw in the Bitcoin Protocol,
saving electricity costs by up to 20-30 percent
while mining.
According to Maxwell and I quote, “This could
have a phenomenal centralizing effect by pushing
mining out of profitability for all other
participants, and the income from secretly
using this optimization could be abused to
significantly distort the Bitcoin ecosystem
in order to preserve the advantage.”
There were 2 ways to use ASICBoost.
One way was highly detectable and was not
used but there was another way which was extremely
hard to detect.
Allegedly, someone was mining in secret using
the covert method of ASICBoost.
This brings us back to the Segwit upgrade.
Upgrading to Segwith via a soft fork was incompatible
with the secret use of ASICBoost but a hard
fork upgrade would allow ASICBoost to continue
as usual.
This could have been the motive behind Jihan’s
opposition of the soft fork at the same time
pushing the hard fork.
You may ask, there are many Bitcoin miners
in the world, why are we pointing our hands
at Jihan?
It turns out that Jihan’s company Bitmain
actually has a patent for ASICBoost in China.
Although, admitting to ownership of the patent,
Jihan angrily denied the allegations against
him and his company.
He claims that they are legally allowed to
use ASICBoost but they chose not to for the
greater good of Bitcoin.
That they only “tested” ASICBoost, but didn’t
use it in real mining operations.
That there is no relationship between ASICBoost
and his opposition to the soft fork upgrade.
It is no surprise that lot of the people actively
involved in Bitcoin’s development didn’t find
his reasons convincing.
After all, as a businessman, people assumed
he was motivated by profit.
And based on Greg Maxwell’s calculations,
Bitmain could potentially be able to bag an
extra $100 million if they continue to exploit
the ASICBoost’s unfair advantage.
And besides, what’s the point of filing a
patent if you never intended to use it or
profit from it.
It just doesn’t add up.
That’s it for today’s video I hope you enjoyed
it….
I wish I could say that that was all there
is to know about Jihan Wu and Bitmain… but
it actually gets worse.
Stay tuned for the part 2 video where I will
bring you to the present day problems that
we are facing because of Bitmain’s existence.
If you want me to keep making more videos
like this be sure to give a thumbs up and
subscribe.
Till next time guys.

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