The Young Billionaire Who Doesn’t Want His Money

The Young Billionaire Who Doesn't Want His Money
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No matter how you look at it, one of the hottest topics in recent years is the issue of digital currencies – cryptocurrencies in general and bitcoin in particular.

Yes, the currency or ‘non-currency’ that has depleted and rich and poor is one of the most talked about topics in the financial world. Because what else we haven’t heard about bitcoin and the like, from “one day we’ll only use such currency” to “this is the biggest Ponzi scam in history.”

Bitcoin Currency (Photo: Shutterstock)

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But one thing is undeniable. Whoever seizes this opportunity as soon as possible has got the deal of his life. one of them, he Sam Bankman-Fried – who made history and became the youngest billionaire – second in the world (right after Mark Zuckerberg).

Sam Banksman-Fried, who are you?

profile picture:

• There: Sam Bankman-Fried
• Age: 29
• Birth: Stanford, California
• Primary Occupation: Founder and CEO of FTX
• Equity: 22.5 billion
• An interesting anecdote: If you see him on the street, he will show you homeless. He walks around with extreme simplicity and this is another ideology of his life

    (Photo: Shutterstock)

(Photo: Shutterstock)

Sam Bankman-Fried, perhaps one of the last remnants of the famous saying about America – the land of unlimited possibilities (Are today’s opportunities limited or almost non-existent for the average citizen? This is already a topic of conversation ) a cup of coffee), and still being one of the “rich” (ranked 400) and one of the world’s richest youth demands more than just a ‘good opportunity’.

How did this all start?

Until four years ago, Sam Bankman-Fried was just another ordinary US citizen (or ‘as a man’ if you prefer), but always excelling in his skills. He graduated from the prestigious MIT University and graduated with a Distinguished Degree in Physics. He was kidnapped shortly thereafter for his first job at the prestigious investment house Jane Street Capital.

Although he worked in an investment house and even though bitcoin had been with us for many years, Bankman was not convinced with the product and did not see the need to invest in it.

Years later, as a bitcoin billionaire, Bankman-Fried stated several times that he “doesn’t believe in currency.”

So how did it happen that a person who doesn’t believe in a particular product becomes a billionaire with exactly that product? The answer may lie in Bankman-Fried’s “effective altruism,” meaning he is doing what is best for another, which is probably why Bankman-Fried is apt to invest in bitcoin.

Because where can you earn a lot of money – in a short time, and in any case donate back to the company at the same speed, if not from bitcoins …

big money

Apparently “effective altruism” (assuming that is indeed the case) makes people the greatest possible.

In 2017 – eight years after the first currency was introduced, Bankman-Fried woke up to business senses when he noticed the currency’s high volatility and invested himself.

But even when it comes to bitcoin, Sam has proven to be exceptional, and instead of investing like a regular trader – buying and selling currencies, Sam has done arbitrage deals. They found that there is a Japanese bitcoin that trades in the United States for ten thousand dollars, and in Japan it is traded for fifteen thousand dollars. You already understand what he did alone …

Bitcoin and Ethereum (Shatterstock) Coins

Bitcoin and Ethereum coins (Photo: Shutterstock)

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Shortly after he began trading currencies in various trading venues, and seeing profits, Bankman-Fried noticed that the trading platform was lacking and did not allow the user to maximize profits and founded FTX – in digital A public trading platform for independent trading. Currencies.

In no time, FTX became one of the five largest currency trading platforms in the world with a daily trading turnover of approximately $20 billion (!), with a net profit of 0.02% of the company’s each transaction, making profits soon after. 750 million in revenue from transactions that occurred and 350 million in transactions that the company itself had in independent business.

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FTX (Shatterstock)

The FTX Company (Photo: Shatterstock)

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In addition, in the last year alone, Bankman-Fried declared a net profit of over $1 billion when Bankman opened his own private currency trading company.

So what is bitcoin?

Many people will talk and talk about bitcoin. About how a tiny line of mathematical code has become a hit for billionaires, causing companies to grow and grow at a record pace, and how many countries in the Western world based on modern economies still behave legally and constitutionally. Don’t know with the issue. Nevertheless, a few words about bitcoin …

The bitcoin currency first appeared in our lives in 2009 by a group of Japanese programmers, led by a man hiding under the pseudonym Satoshi Nakamoto.

The goal of the programmers to uncover the currency was to reward the maintenance and operation of the bulkchain network. (* For well wishers, a brief description of the blockchain network is attached at the bottom of the article) Thus, any programmer who helps solve and develop the blockchain network will win the bitcoin currency or part of it (when in fact he will win a new line of code representing the currency he just created) when the target Were the currency value to be completely determined, with a mining limit of 21 million coins, without demanding any physical value. When mining more bitcoin coins will not be possible.

US Stadium FTX $153 million (Shutterstock)

US Stadium FTX $153 million (Photo: Shatterstock)

But the inventor of bitcoin never imagined that demand would be so high and reach outside the community of programmers when the currency reached its peak in value of more than $60,000 per single currency when, as of last November, the value of all in the world. Bitcoin coins were worth $1.106 trillion.

“effective altruism”?

Although to date Sam Banksman-Fried has donated ‘only’ $25 million, about 0.1% of his fortune, he has declared that this is his sole purpose.

When asked in an interview if he would give up crypto if he thought he could make more money than anything else – say, trading orange juice futures, he didn’t stop to say, I’ll do it, yes.”

What is a Blockchain Network?

On the tip of the fork: If you own bitcoin or have decided to open a digital wallet, you actually have digital assets that are exclusively registered in the blockchain network because it is probably the most secure digital network in the world and there is almost no risk of theft or theft. is unlikely. Theft.

Why? Let’s try to explain: Blockchain network is a chain of blocks which is a fully distributed network for banking and information storage. In each block you can store codes that represent costs on commodities, digital assets, contracts, etc.

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The network is maintained by code-based solutions to mathematical problems so that each correct solution leads to an opening of the current block and an exposure to the next mathematical problem, whereby it will be possible to open the next block in a chain that allows more people to know. to store.

Payment in Digital Wallet (Shutterstock)

Digital Wallet Payments (Photo: Shatterstock)

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Each solution must be a continuation of the previous solution and therefore any way to hack or change the code to steal the asset will cause the wrong code solution to block the current block and all subsequent blocks and will anyway be the person of the blockchain network. Permanently blocked from use.

Complex? Definitely.

Imagine ten cubes, each numbered from one to ten. All dice can only be used in the current sequence of numbers. As soon as someone tries to convert a digit to the cube number three, the sequence of dice will be hit and all dice beyond cube three will be out of use.

Although the blockchain network is a network without the supervision of a government or private body, for these reasons it is probably the most secure information storage network in the world.

About the author: Seth Grace

Seth is an all-around geek who loves learning new stuff every day. With a background in Journalism and a passion for web-based technologies and Gadgets, she focuses on writing about on Hot Topics, Web Trends, Smartphones, and Tablets.

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