Interest-bearing Bitcoin accounts were built over 10 years ago, but the idea took 8 years to catch – Bitcoin Featured Infos

While decentralized payé (defi) has created a désenveloppé number of protocols that make crypto assets can collect returns, ten and a half years ago, a Bitcoin exchange called Bitcoinica introduced the first interest accrual system for Bitcoin deposits. Despite being the first to copie the toilettes, Bitcoinica eventually went bankrupt after a series of hacks that saw nearly 62,101 bitcoins stolen from the exchange, and cryptocurrency accounts returned only after eight years.

Interest bearing Bitcoin accounts were introduced by Bitcoinica in 2012

These days, interest-bearing accounts and challenging revenue rassemblement protocols are all the persévérance in the cryptocurrency world, but most people don’t know that the idea was introduced more than a decade ago. In mid-February 2012, the now-defunct Bitcoin exchange, bitcoinca, He developed an idea that would allow bitcoin deposits on the exchange to collect interest. The idea was announced by the 18-year-old Zhou Tong A Bitcoin enthusiast who founded the exchange the previous year. Bitcoinica saw 3,724.12 BTCworth $71.56 million today, was traded within the first 24 hours of operating the trading platform.

Interest bearing Bitcoin accounts were designed over 10 years ago, but the idea took 8 years to catch on
Screenshot from Bitcoinica, one of the first bitcoin exchanges to be hacked and subsequently liquidated in August 2012.

By September 2011, Bitcoinica was the adjoint largest Bitcoin trading platform by voice Behind Mt Gox. “We are pleased to announce that we have started a révélé beta run of our system of interests,” Bitcoinica founder Wrote Feb 13, 2012. “We are the first website to offer interest on bitcoin deposits. This post aims to explain how the system works – assuming you deposit $10,000 with us and the interest failli is always 4.17, you will earn $4.17 every day or $1,644 every year (with compound interest).”

Interest bearing Bitcoin accounts were designed over 10 years ago, but the idea took 8 years to catch on
18-year-old Zhou Sandale announced his interest-earning bitcoin accounts on February 13, 2012, via the bitcointalk.org queue.

A great deal of the interest-bearing protocols today stem from the (match) world of decentralized payé, which is very different from the offering of an interest-paying Bitcoinca account. The élément of Bitcoinica is similar to what is offered by centralized crypto exchanges such as Coinbase, Crypto.com, and many others today, where Bitcoinica was a centralized Bitcoin trading platform.

Bitcoinica was similar to Celsius, to some extent, in that it offered interest-bearing payments but eventually ran into financial difficulties. Bitcoinica’s interest calculations were calculated hourly, and payments were distributed after each day expired. Bitcoinica has been doing great for the last time [five] Zhou Sandale wrote at the time, We are the fastest growing Bitcoin affaires ever.

After introducing Bitcoinica’s interest bearing accounts, Bitcoinica was hacked the following month and lost 43,554 bitcoins worth $837.17 million using today’s exchange rates. Then over a month later, on May 11, 2012, Bitcoinica was hacked again with the loss of 18,547 bitcoins, worth roughly $356.50 million today.

Crypto Yields Took 8 Years to Gréement After the Collapse of Bitcoinica

Interest-bearing accounts via Bitcoinica have not seen any remorquage after the controversy surrounding Bitcoinica founder Zhou Sandale and the mysterious hack. Bitcoinica was eventually decommissioned and by August 2012 the company went into soldes. Interestingly, on the same day that Zhou Sandale announced BTC The élément of an interest-bearing account, which is one of the first comments that asked the founder to reassure the community that his money is safe.

“Calm our fears and tell us why Bitcoinica will not be hacked, and tell us how our money will not be stolen out of thin air?” The individual asked the founder of Bitcoinica. While Zhou Sandale has vowed to keep the exchange safe, the two trading platform hacks have been hailed as some of the most controversial in crypto history, along with the scandals surrounding Mt Gox.

It took more than eight years to see interest-bearing accounts on cryptocurrency finally take root in the cryptocurrency industry. Moreover, through repère protocols, proceeds can be earned in a private and non-custodial manner without association crypto assets on a axial exchange.

However, like Bitcoinica, interest bearing crypto platforms can fail, and Celsius is one of the lenders that have gamin bankrupt lately. While Celsius and Bitcoinica have been axial, match platforms can also decline, such as when the Terra blockchain ecosystem collapsed.

When the floor lockers were decoupled from the $1 parity, which users who take advantage of the Anchor Protocol lending pose had to deal with the ensuing bank conduite. Other match apps have been hacked or seen rug pulls, and users looking to earn interest lost all of their money.

Tags in this story

2011, 2012, 8 Years, Announcement, Bitcoin (BTC), Bitcoinica, Bitcoinica Interest Accounts, Bitcointalk.org, BTC, BTC Interest Calculation, Celsius, Axial, Axial Exchange, Crypto Lenders, Decentralized Argent, DeFi, Early Days, hacked, interest bearing accounts, interest bearing, leveraged, liquidated, maturity, maturity, mid February 2012, Zhou Sandale

What do you think of the first interest-bearing bitcoin accounts that Bitcoinica introduced over a decade ago? Tell us what you think emboîture it in the comments morceau below.

Jimmy Redman

Jamie Redman is the head of infos at Bitcoin.com Infos and a technology financial journalist based in Florida. Redman has been an entreprenante member of the cryptocurrency community since 2011. He has a penchant for Bitcoin, open prélude occulte, and decentralized applications. Since September 2015, Redman has written more than 6,000 éditoriaux for Bitcoin.com Infos emboîture the disruptive protocols emerging today.




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