Five regular people who became rich because of Bitcoin

How much money can you make with Bitcoin? In the following we want to introduce you to five people and their story of Bitcoin and becoming famous.
The person who made the most money is Roger Ver aka Bitcoin Jesus. He is the richest bitcoin millionaire with $52 Million. To be fair he was already a wealthy man when he started to dig into the Bitcoin business. He is investing into Bitcoin Startups and is known for making many donations.

His friend Charlie Shrem made $45 Million with Bitcoin and Roger Ver invested into Charlie’s BitInstant. This company was very successful and was founded by him with only 11 years. So Charlie started investing into Bitcoin at a very early stage, when the price was still very low. Unfortunately Charlie ended up in prison because of money laundering in The Silk Road online black market. When he got released in 2016, he started Intellisys where he is selling investment portfolios in blockchain companies.

Another person, who made really good money with Bitcoin is Dave Carlson with $35 Million (he reported he was making $8 million per month in 2016). He is the founder of the mining company MegaBigPower. This company is very successful and he is leading it from his personal basement.

Jered Kenna made $30 Million. Like some of the other Bitcoin-Millionaires, he invested at an early stage (the value was 20 cents). He sold his coins when each bitcoin was worth $258. He is the founder of several companies: Bitcoindark (mining pool), a craft brewery in Colombia and 20 mission collaborative workspaces for entrepreneurs in San Francisco.

The last two people we want to introduce to you are the Winklevoss Twins. The brothers were one of the earliest investors and they also became the first ever bitcoin millionaires. They earned $11 Million by investing into BitInstant Bitcoin in 2013, and founded the company Winkdex (tracking the average price of Bitcoin). In 2015 they opened their first Bitcoin exchange in Gemini.

What Happens to Bitcoin After All 21 million Are Mined?

The cryptocurrency Bitcoin is a limited and finite supply. That means, there will only ever be 21 million bitcoins ever produced and being able to mine. On average, these bitcoins are introduced to the Bitcoin supply at a fixed rate of one block every ten minutes. 2140 is supposed to be the year, where all Bitcoin is mined.  In February 2021 18.638 million bitcoins have been mined, which is equivalent to 88.3% of the maximum supply. So, there are 2.362 million left.

  •  While there can only ever be a maximum of 21 million bitcoins, because people have lost their private keys or have died without leaving their private key instructions to anybody, the actual number of available bitcoins in circulation could actually be millions less.
  • What will miners do when all the Bitcoin has been mined you might wonder. When the circulation supply reaches its maximum, miners will not receive any more block rewards. Instead, they will receive transaction fees. That means they will still be able to interact and participate in the block discovery process, only their reward will be different.

At the moment transaction fees make up a small proportion of a miner’s revenues, since miners currently mint around 900 BTC a day, but earn between 60 and 100 BTC in transaction fees each day. That means transaction fees currently make up as little as 6.5% of a miner’s revenue, but in 2140, that will change to 100%. Which will be a big difference.

The Deeper Network

The Deeper Network describes itself as the gateway and infrastructure for Web 3.0.
It is completely decentralized and combines blockchain, cyber security and sharing economy to create a peer-to-peer-network.
Its goal is it to provide a more secure, private and fair internet.

The deeper chain is a completely decentralized public blockchain. It stands out through high security, high efficiency and micro-energy consumption.

If you have a closer look, you can see that it is made out of two layers. The top one consists out of hundreds of validator nodes and is secured by credit scores of deeper devices. The more people involved in bandwidth sharing, the more secure the network will be. The second layer, also known as the bottom or deep layer consists of peer-to-peer connected Deeper devices. These devices earn token rewards by sharing their bandwidth with each other.

The Deeper Network price in the beginning of March is $0.09286 and its Market Cap $115,756,521.64.

Crypto Mining

There are two different ways to invest into cryptocurrency mining. On the one hand you have the private mining and on the other hand mining through a cloud. Each way of mining needs an e-wallet to save the generated cryptocurrency.

If you decide to go with private mining you will also need a specific software, which can perform the hash rate. It is pretty easy to install and set those up. You can also still use the CPU of your own private PC at home for mining cryptocurrency but looking at the economic factor of investing, it is not recommended. A way more efficient way – 100 times more efficient and seven times faster – is using ASICs (Application Specific Integrated Circuit). But even that does not always seem profitable if you compare it to mining through a cloud.

If you choose to go with mining through a cloud and save yourself the effort of doing it from your private home, you have the possibility to rent hash rates from a cloud mining service. Meanwhile there are existing thousands of different services and providers that sometimes even run whole mining farms. You can sign up for different cryptocurrencies directly through their websites. The costs vary a lot, depending on the service.

History of Ethereum mining

In 2013 Vitalik Buterin described Ethereum in the Whitepaper: “Ethereum: A Next Generation Smart Contract & Decentralized Application Platform” and was introduced at the North American Bitcoin Conference in Miami in January 2014. By July 2015 the operation of the Ethereum network started. The cryptocurrency Ether had market cap over 500 Million US-Dollar in February 2016 and two weeks later it was worth over a billion US-Dollar.

For mining Ethereum the proof-of-work (PoW) consensus mechanism is used. So time and computational power is used by Ethereum miners to create a block of transaction to be added to the Ethereum blockchain.

This PoW algorithm was implemented in 2015. But next year a proof-of-stake algorithm will replace mining and proof-of-work.

In December 2020 the beacon chain started officially and for the first time it was possible to realize and generate a return on Ether, without using external protocols.

For staking through a crypto exchange you can use any number of Ether.

In the current stage of development it is only possible to deposit Ether into the deposit-contract and stake it with the help of a validator. It is not possible to withdraw the deposited Ether after. This is going too change with the next update. But you are able to stop the validator voluntary (voluntary exit), which means it is allowed to be offline without having to pay a fine.

So the next step to change towards a proof-of-stake algorithm is the so called “Sharding”. That means hat the network is split into several shards, which is suppose to help with the burden of each node and improve the scalability of the network. This is suppose to happen in 2021. In January 2022 the final step, the “Docking”, will happen. Which means, that the existing network Ethereum 1.0 will be connected with new network Ethereum 2.0 and this will be the official ending of the PoW algorithm.

History of Bitcoin Mining

As we mentioned in an articles before, mining equipment and technology grew and improved rapidly in the last years. While looking at the development and history of bitcoin mining equipment we are able to find reasons why mining is so successful and now a multi-billion dollar industry.

CPU Mining

When the first Bitcoin was mined in January 2009 by Satoshi Nakamoto, no specially designed technology and equipment was needed for that. The first Bitcoin was mined with an average personal computer, that contain a central processing unit (CPU). Because there were not many miners in the early days CPU devices processed enough computational power to create new blocks and earn mining rewards.

A new hardware was needed as the popularity of mining grew and new miners joined the Bitcoin network.

GPU and FPGA Mining

In October 2010, when the bitcoin price reached 10 cents, the first mining device leveraging graphics processing units (GPUs) was developed. A major innovation in mining hardware.

In comparison to CPUs, GPUs can only perform a limited number of computational tasks. They were originally built for gaming application but can also be re-programmed to compute other mathematical operations such as the ones needed to mine new bitcoin. Producing bitcoin blocks was now six times more efficient than before on CPUs.

In 2011 field programmable gate arrays (FPGAs) were also remodelled for the purpose of mining Bitcoin. They now can mine Bitcoin twice as fast as the highest grade GPU. Building these is way harder though, they need configuration on software and hardware level. The reason why they are better for bitcoin mining than GPUs is, the ability to adjust hardware components on an FPGA.

ASIC mining

The third major innovation in the to bitcoin mining industry happened in 2013.

That year the first application-specific integrated circuits (ASICs) was released. In comparison to the other devices named CPUs, GPUs and FPGAs, ASICs are only designed to mine Bitcoin and create new bitcoin blocks. The efficiency was never higher.

Dash & Hardware

In October 2021 the Bitmain Antminer D7 was launched. It has a hash rate capability of 1.286 TH/s and an electrical efficiency output of 3148 Watts. This cryptocurrency mining hardware is known for being very profitable (up to USD$25,000 in the first year) though the energy consumption is pretty high. The price of this ASIC has been risen immensely since its release.

Reasons for that are low stock numbers, instant sold out, increased market value and mining profitability.

The used algorithm is the X11, which is most profitable for mining DASH coin. But miners could also use it for Hatch, Pura, Onix or Smartcoin.

Dash was released in 2014. In comparison to Bitcoin, DASH verifies transaction in two different ways -miners and master nodes. It is more focused on instant transactions, like using it for shopping smaller things too, like a sandwich or a coffee.

Dash’s market cap is currently around USD$206 a coin. The D7 could help it increase again. It is the most efficient and powerful ASIC miner with an X11 algorithm on the cryptocurrency market.

Ethereum using by country

We know that the value of ETH has exploded over the past year and investors are having outstanding financial returns, but where are those people located? The Top 10 that are interested most in using Ethereum (storing, transferring, trading, making payments, searching for information, etc):

  1. United States
  2. Germany
  3. China
  4. Singapore
  5. Finland
  6. France
  7. Hong Kong
  8. Japan
  9. Canada
  10. United Kingdom

As an example, there is around 1.116 million enquiries about Ethereum in the United States per month and in Germany around 736,300 people search for Ether. So the interest is huge.

ASIC Miner Equipment

If you are owning an ASIC-miner (application-specific integrated circuit) you might be interested in getting some good equipment, accessories, attachments and spare parts. An ASIC-miner is a device that is designed for the sole purpose of mining cryptocurrency.

Cryptosupply.de has you covered for that.

On our website you will find Fans (6,5’’-6 Pin RUIZHAN, 6.5” 4-Pin RUIZHAN), Power Cord Plugs (Europe IEC320/C19, Europe CEE 7/7 C13) or Coolers (7,6”-Pin Whatsminer).

High quality equipment for your device can help you get better results and takes care of your precious miner. For example, the fans offer hassle-free installation and are compatible with a wide range of ASIC-miners.

If you do not want to take care about any of your devices at home, check out our ASIC-Miner hosting solution.

Ethereum Usage

After Bitcoin, Ethereum is the second-largest cryptocurrency based on value. The estimated market cap is at $500 billion. It is an open-source blockchain-based platform that creates and shares business, financial services and entertainment applications.

Ethereum distinguishes itself from Bitcoin as a programmable network that works as a marketplace for different services, apps and games.

Things you can use Ethereum for:

1. Ethereum is a decentralized public ledger for verifying and recording transactions

2. Users can create, publish, monetize and use applications on the platform

3. use Ether cryptocurrency as payment

4. the platform creates and shares business, financial services and entertainment applications.