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Bitcoin pioneer does not have to regret losing $ 100 million

Bitcoin pioneer does not have to regret losing $ 100 million

(Bloomberg) – Jeff Garzik started making software code for Bitcoin after reading a post on a digital currency blog in July 2010. At that time, he was working remotely for the power of open source Red Hat Inc. a motorhome parked on an empty lot in Raleigh, North Carolina.

He soon became the third of the main codemakers for Bitcoin behind the anonymous maker of the cryptocurrency, Satoshi Nakamoto and the programmer Gavin Andresen, and continued in 2014. Ten years after the founding, Garzik says he is proud, even though Bitcoin is not what he thought it would be.

"As a father, I enjoy seeing my children grow, even if they make mistakes or grow in a way I did not expect," said Garzik, who gave away $ 100 million bitcoins based on current prices.

During the initial period, Garzik, 44 years old, worked directly with Nakamoto, with whom he communicated via private email and the Bitcointalk forum, until the maker of the coin disappeared abruptly in 2011. Former employees and journalists wonder about who or who they were – a matter of interest, since Nakamoto manages about 1 million bitcoins and could have an impact on the market price of the cryptocurrency.

"My personal theory is that it is Dave Kleiman from Florida," said Garzik in a telephone interview. "It suits his programming style, this gentleman was self-taught, and the Bitcoin programmer was someone who was extremely intelligent, but not a software engineer who was trained in the traditional way."

Kleiman, a former Florida expert who eventually became an expert in forensic computer science, died in 2013. The succession of Kleiman now requires the Australian Craig Wright, who claimed to be Nakamoto, because he was the equivalent of billions of dollars in bitcoins and intellectual property of Kleiman. Wright denies that claim.

The vision of Bitcoin as private money that Nakamoto had was not prosperous. Their use in trade is actually declining, according to a recent analysis by the research firm Chainalysis. On the contrary, speculators and investors have treated it as an asset similar to gold. Garzik, who is based in Atlanta, seems fine.

"It's an organism, something that evolves," said Garzik, who worked for the Crypto-payment processor of BitPay and is still on the board, as well as the folders from blockchain technology company BitFury and the Linux Foundation. "It did not evolve in the direction of large-scale payments, something we thought in the early years: getting traders to accept bitcoins, but from the point of view of the reserve of value it is undoubtedly a success".

Garzik continued programming for Bitcoin until 2016, when he shifted the focus of his businesses as a result of the battles between programmers and miners on how to expand the network. Bloq Inc., a startup that co-founded Garzik, has tried to exploit a niche that serves corporate customers. Bloq, of which the Andresen Advisory Board is a member, currently has 30 employees and customers at Fortune 50 companies, as well as companies that focus on cryptocurrencies.

Original note: Bitcoin Pioneer, which has given away more than $ 100 million, has no regrets

– With the cooperation of Edvard Pettersson and Peter Blumberg.

Reporter in the original story: Olga Kharif in Portland, okharif@bloomberg.net

Responsible for the original story: Nick Turner, nturner7@bloomberg.net, Jeremy Herron, jherron8@bloomberg.net, Dave Liedtka, Andrew Dunn

For more articles like this, visit us at bloomberg.com

© 2018 Bloomberg L.P.

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