$8M Worth of 'Sleeping' Bitcoin Rewards from 2010 Moved the Day Before 'Black Thursday'
Over a half a million dollars worth of bitcoin from a May 2010 coinbase reward was transferred to Bitfinex on October 1. A parser recorded the old coins being spent and since mid-February 2020, roughly 33 so-called ‘sleeping bitcoin addresses’ from ten years ago have been spent to-date. Interestingly, 20 out of the 33, 2010-issued rewards moved this year were spent the day before ‘Black Thursday.’
Earlier this week, the software program, Btcparser, recorded an old coinbase reward from 2010 getting spent on Thursday, after the 50 bitcoins sat dormant for over a decade. Btcparser is a Telegram and browser bot that was developed in order to monitor the “activity of so-called sleeping bitcoin addresses.”
Btcparser.com shows three types of parsed data obtained from the Bitcoin (BTC) blockchain. The first parser combs the BTC blockchain for activity related to 64,529 addresses stemming from 2009 through 2017.
News.Bitcoin.com leveraged Btcparser.com to look at the 2010 block that was spent on October 1, 2020. While combing through the parsed data, an aggregate total of 33 block rewards from 2010 was moved between February 13, 2020, to now.
Btcparser’s Telegram channel shows these alleged dead addresses have been recorded since February 13, 2020. A great majority of rewards spent in 2020 on Btcparser’s first list were minted in 2017, 2016, and 2015.
Blocks stemming from 2011, 2012, 2013, and 2014 are rarely spent but have been recorded on a few occasions this year. From mid-February 2020 until today, 33 blocks with 50 BTC coinbase rewards from 2010 were moved after a whole decade. Another block reward from 2009 was also spent this year as well. That’s a total of 1,650 BTC (34 block rewards) worth over $17 million using today’s exchange rates.
Roughly a half a million dollars worth of Satoshi era or sleeping bitcoins moved to a crypto exchange on October 1, 2020.
The last 2010 block of coins moved was transferred on October 1, 2020, and it was allegedly sent to a Bitfinex hot wallet. The 2010 block spent last Thursday was originally minted on May 24, 2010, when bitcoin was practically worthless. For instance, the block’s creation was a week after Laszlo Hanyecz successfully traded 10,000 BTC for two pizzas.
The last group of bitcoins that were moved stemming from 2010, prior to the October 1st transfer, was on September 22, and September 2, 2020. Those 100 old bitcoins (over $1M in value) were issued on September 16, and October 6, 2010.
Out of the total 33, 2010-based block rewards moved this year since mid-February, a single 2009 block reward was transferred on May 20, 2020. This block moved made headlines in the media because it was mined only a month after the BTC network was first invoked.
On March 11, 2020, Btcparser and blockchain explorer data shows that 20 blocks with rewards minted in 2010 were moved to another wallet. The following day, due to the Covid-19 outbreak scare and turbulent macroeconomic events, BTC’s price dropped -49% from $7,648 to $3,870 per coin. After the March 12th market rout, the following day BTC’s price was hovering between $5,300-5,600 per coin.
However, one story that didn’t make headlines was the massive 20 block rewards (50 BTC) transferred on March 11, 2020, the day before ‘Black Thursday.’ March 12 or Black Thursday saw crypto markets decline significantly in value, as bitcoin BTC prices slid -49% from $7,648 to a low of $3,870.
Additionally, another 2010 block reward, coincidentally mined on March 11 of that year, was also transferred on Black Thursday. It is uncertain whether or not the mined blocks from 2010 that were moved in mid-March were mined by a single entity, but it’s likely that it was the same person.
Furthermore, the BTC minted in 2010 spent the day before Black Thursday also saw it’s corresponding BCH moved on the same day. The BCH spent was worth $271k using bitcoin cash exchange rates on March 11, 2020. Moreover, the corresponding bitcoinsv (BSV) coins tied to these block rewards were also spent.
For some reason before the market carnage on March 12, the 1,050 BTC stemming from numerous 2010 block rewards were possibly sold at the top for $8 million. It’s quite possible that the owner of those Satoshi-era bitcoins knew the market would see a big sell-off the next day.
There are a lot of Satoshi-era or so-called sleeping bitcoins that never have moved. Estimates assume there are close to 1.8 million bitcoins from old coinbase rewards left unspent that are sitting dormant in wallets.
There were 67,920 BTC blocks solved in 2010 with the first block of the year mined at height 32,490. Bitcoin blocks that were mined prior to block height 79,764 were also mined into a single payout address. Blocks mined prior to block height 135,000 saw rewards sent to unencrypted wallets as well. Wallet encryption wasn’t officially added to BTC wallet software until July 2011.
It’s quite interesting that the miner spent the decade-old bitcoins worth around $527k on October 1, 2020. But what’s even more intriguing is the 20 or so 2010-based BTC, BCH, and BSV blocks spent before Black Thursday.
What do you think about the 2010 block spent on October 1 and the 20 blocks spent in mid-March? Let us know what you think about this subject in the comments section below.
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TAGS IN THIS STORY
2009 block, 2010 Block Reward, 2010 Mined Coins, Bitcoin, block rewards, BTC, Btcparser.com, Cryptocurrency, Digital Assets, Laszlo Hanyecz, Mined Coins, moved coins, October 1 transfer, parser, Satoshi Nakamoto, Satoshi-Era coins, sleeping bitcoin, spent
Image Credits: Shutterstock, Pixabay, Wiki Commons, Btcparser.com
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All Currencies Will Be Pegged to Bitcoin, Says 'Price of Tomorrow' Author Jeff Booth
Entrepreneur and popular author Jeff Booth has predicted a grim future for fiat currencies, expecting them to fail as central banks keep printing money. Foreseeing an unavoidable, severe depression and banking failure, he believes bitcoin will become the world’s reserve currency and all national currencies will be pegged to it.
‘Highly Likely’ Bitcoin Will Become the Reserve Currency
The author of “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future,” Jeff Booth, has made the case that bitcoin will become the world’s reserve currency and all national currencies will eventually be pegged to bitcoin. Booth published his book in January, detailing why we are due for a financial reset and a new economic framework. The entrepreneur also founded Canada-based technology company Builddirect, an online marketplace for home improvement products.
In an interview with Cambridge House International, published last week, he discussed the current economic situation and why he is more bullish on bitcoin than any other asset class. He began by explaining the consequences of what the Federal Reserve is doing right now. “All of the printing is going directly into asset prices and it’s being robbed from the greater economy,” he described. “What’s coming next is MMT, helicopter money, and everything else. And once the Fed loses its credibility then all bets are off in inflation so the Treasury essentially will become the Fed and print money and can distribute that money to [the] population, and then you are going to lose currencies all over the world.”
Moreover, Booth predicts that “interest rates are going to continue to go down until currencies fail,” emphasizing that central banks are artificially keeping interest rates low. The Federal Reserve recently pledged to keep interest rates near zero for several years, after it announced a policy shift to push up inflation.
To preserve wealth in this environment, Booth diversifies and cautioned against putting all wealth in one asset class. While having both gold and bitcoin in his investment portfolio, he affirmed, “I am much more bullish on bitcoin for a variety of reasons. I think it could be the new gold … bitcoin works on a network effect.” The popular author elaborated:
[Bitcoin] should keep on growing and I think one day other currencies will be pegged to bitcoin … I think it’s highly likely that bitcoin becomes the reserve currency.
He noted that “Gold is valued where it is for the exact same belief that it will be pegged to currencies,” asserting that bitcoin is a much better bet than gold, and more importantly, everyone’s portfolio “must” include bitcoin. In addition, “When currencies break and safety becomes an issue, portability of gold is really difficult,” he warned, adding that “The portability alone of bitcoin for safety reasons becomes paramount.”
When asked about the biggest challenge bitcoin faces, he said government bans are the number one concern. However, he expressed: “I see that as a very low probability … because of game theory. So in a competitive world where every region needs to attract wealthy people, businesses. If regions ban it, other regions accept it faster.” He outlined that if a country tries to stop bitcoin, “it creates more of an incentive for other countries to accept it and build rules around it,” pointing to Switzerland as an example.
Booth also shared his view on the future of the stock market. “The stock market is teetering. You feel like it’s about to collapse and that’s all around stimulus. Without more stimulus, expect a downward spiral … if stimulus stopped that downward spiral would take stocks down 80%,” the author opined. However, he firmly believes that governments will not let this happen and will print their way out in order to prevent it.
While his book highlights a more optimistic outlook since he wrote it shortly before the coronavirus crisis, Booth now sees a grimmer future, as trends have been accelerated by the covid-19 pandemic. “It accelerated the monetary easing and now there just isn’t a way out without a severe depression and banking failure,” Booth opined, adding:
Bitcoin becomes a really good choice to protect wealth and what’s happening because it cannot be confiscated … I think bitcoin will go up, largely up, like a macro theme.
Do you think bitcoin will become the world’s reserve currency? Let us know in the comments section below.
