The story of Bitcoin in China is not just one of technology and finance—it’s a tale of visionaries, underground networks, and digital gold rushes. At the heart of this narrative stands a man known only by his online alias: FriedCat (Jiang Xinyu), a prodigy whose brief but explosive impact reshaped the early cryptocurrency landscape.
From humble beginnings in Hunan to commanding over half the world’s Bitcoin mining power, FriedCat’s journey embodies the spirit of innovation—and the perils of being ahead of one's time.
The Prodigy from Shaoyang
Born in 1986 in Hunan Province, FriedCat was no ordinary child. A true academic standout, he entered the prestigious University of Science and Technology of China’s少年班 (Young Elite Program) at just 15, ranking 11th nationally in the college entrance exam. His brilliance earned him a place on his school’s honor roll—a legacy still remembered today.
By 2009, he had completed his master's thesis titled "Building Secure Threading Mechanisms Using Formal Methods" and later pursued doctoral studies at Yale University. It was during this time that he first encountered the emerging world of Bitcoin and decentralized finance.
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The Birth of Bitcoin and the Crypto Underground
To understand FriedCat’s rise, we must go back to the roots of cryptocurrency itself.
In 1992, a group of cypherpunks—tech idealists advocating for privacy through cryptography—gathered to promote what they called “crypto-anarchism.” One member, Timothy May of Intel, famously declared:
“A specter is haunting the modern world—the specter of crypto-anarchism.”
These pioneers believed that cryptographic tools could liberate individuals from state surveillance and financial control. Their dream culminated in 2008 with the release of the Bitcoin whitepaper by the mysterious Satoshi Nakamoto, titled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
On January 3, 2009, Nakamoto mined the genesis block, launching the first decentralized digital currency—one that required no central authority, no banks, and no trust.
But for Bitcoin to be more than code, it needed real-world value.
That moment came in 2010 when Laszlo Hanyecz offered 10,000 BTC for two pizzas—a transaction now legendary in crypto lore. Though it seemed absurd then (those coins would be worth billions today), it proved Bitcoin could function as money.
How Bitcoin Spread in China: From Gamers to Miners
Surprisingly, Bitcoin didn’t first catch on among Chinese academics or tech elites. Instead, it spread through an unlikely community: video game gold farmers.
In 2010, World of Warcraft dominated internet cafes across China. Teenagers with dyed hair and neon clothes spent nights grinding for in-game gold—often earning just a few yuan per hour.
Then came mining software.
Simple programs promised extra income: install a tool, let your PC run overnight, earn Bitcoin while gaming. Early miners sold their coins for just 2–3 RMB each, unaware they were discarding future fortunes.
This grassroots adoption laid the foundation for China’s eventual dominance in blockchain mining.
The Mining Revolution: CPU → GPU → ASIC
Initially, anyone with a computer could mine Bitcoin using their CPU. But as demand grew, so did competition.
Enter GPU mining—graphics cards proved far more efficient at solving cryptographic puzzles. Gamers suddenly found new value in high-end GPUs, driving up prices and even upgrading China’s internet cafes en masse.
But the real game-changer arrived in 2012: ASIC miners.
Unlike general-purpose hardware, Application-Specific Integrated Circuits (ASICs) were built solely for mining Bitcoin. They delivered unprecedented speed and efficiency—rendering GPUs obsolete almost overnight.
This shift created a new opportunity: not just mining Bitcoin, but building the machines that mine it.
FriedCat’s Bold Move: The First ICO
While studying at Yale, FriedCat learned about Butterfly Labs’ ASIC developments. Inspired by the old adage—"During a gold rush, sell shovels"—he realized the real money wasn’t in mining… it was in making the mining equipment.
In 2013, under the username Friedcat, he posted on Bitcointalk.org, proposing a revolutionary idea: raise funds directly from the community in exchange for shares priced in Bitcoin.
He called it Bitfountain InfoTech, offering 400,000 shares at 0.1 BTC each—totaling 40,000 BTC in potential capital.
This was the world’s first Initial Coin Offering (ICO).
Backers poured in over 16,000 BTC (worth about $1 million at the time). Among them was a young entrepreneur named Wu Jihan, who invested 15,000 BTC—foreshadowing his own rise as a crypto giant.
With funding secured, FriedCat dropped out of Yale and launched production.
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The Rise of the Mining Empire
Just two months later, FriedCat unveiled his first ASIC miner—the Friedcat Miner v1.
He set up a private mining farm and powered it on.
Within hours, his operation captured 51% of the global Bitcoin hash rate.
At its peak, his farm mined over 40,000 BTC per month—a staggering concentration of power in a system designed to be decentralized.
For a brief moment in early 2013, FriedCat was Bitcoin mining.
But success bred fear—and enemies.
Hackers targeted his systems. The community grew uneasy. To avoid backlash, FriedCat limited himself to 20% of total network power, selling off excess hardware.
With no viable competitors yet—Butterfly Labs delayed mass production and Avalon (by Beihang PhD Zhang Nangeng) hadn’t shipped—FriedCat dominated the market.
Buyers lined up outside his office. Some threw cash and ran with machines, terrified of missing out.
In less than six months, he amassed a fortune worth billions in today’s terms, all before turning 27.
The Dream: A Sovereign Island for Crypto Anarchists
FriedCat dreamed bigger than wealth. He wanted to buy an island—a nationless territory governed by Bitcoin, free from governments and laws. A true haven for digital freedom fighters.
But fate intervened.
The Fall: Innovation Stalls, Rivals Rise
By mid-2013, Butterfly Labs finally released their ASIC miners. In July, Avalon began shipping units. Meanwhile, FriedCat struggled to secure TSMC’s 55nm chips, delaying his second-generation miner.
His network share plummeted to just 4%.
In January 2014, he launched the BE300, but due to packaging flaws, many units overheated and failed. Trust eroded. Customers demanded refunds.
By late 2014, FriedCat vanished—along with an estimated 74,715 BTC across two wallets.
No trace. No explanation.
The Mystery Endures
In August 2017, activity surged: 17,600 BTC moved from his cold wallets. Then silence—for seven years.
Until November 12, 2024: another transaction—206.34 BTC sent, worth $18.12 million.
Was it FriedCat? A hacker? Or someone who inherited access?
We may never know.
What remains is legend—a brilliant mind who helped launch China into the blockchain era… then disappeared like Nakamoto himself.
Frequently Asked Questions
Q: Who is FriedCat in the crypto world?
A: FriedCat (real name Jiang Xinyu) was a Chinese prodigy and early Bitcoin pioneer who created one of the first ASIC mining rigs and launched what is considered the world’s first ICO.
Q: How much Bitcoin did FriedCat own?
A: Estimates suggest he controlled around 74,715 BTC across known wallets—worth billions at current prices—but most remain untouched since his disappearance.
Q: What happened to FriedCat?
A: After technical setbacks with his third-generation miner and rising competition, FriedCat disappeared in late 2014. His whereabouts and status remain unknown.
Q: Did FriedCat really control 51% of Bitcoin’s hash rate?
A: Yes—briefly in early 2013, his private mining farm achieved over 51% of global mining power, raising concerns about centralization and network security.
Q: Is there any connection between FriedCat and Wu Jihan?
A: Yes—Wu Jihan (later co-founder of Bitmain) was one of FriedCat’s largest investors, contributing 15,000 BTC to his initial funding round—an early sign of his deep involvement in crypto infrastructure.
Q: Why is FriedCat important in blockchain history?
A: He pioneered community-funded tech development via Bitcoin (the first ICO), accelerated ASIC adoption in China, and demonstrated both the potential and risks of centralized mining power.
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