The journey of China's earliest Bitcoin adopters is a fascinating tale of accidental entry, astronomical gains, and profound realizations. From humble beginnings in internet cafes to navigating volatile markets, their story offers a unique window into the dawn of a financial revolution.
From Gaming Gold To Digital Gold
Long before Bitcoin became a household term, a unique group of computer enthusiasts had already begun interacting with this novel technology—not through financial speculation, but through their everyday work.
"We simply installed a software on our computers, let the program run automatically, and woke up to find coins the next day," recalled Lao Lu, one of China's earliest Bitcoin miners.
These individuals weren't financial experts or technology visionaries. They were gaming studio workers who earned their living by farming virtual items and power-leveling characters for clients. Their high-performance gaming computers, equipped with powerful graphics cards, happened to be perfectly suited for Bitcoin mining when it transitioned to GPU-based mining in late 2010.
"During the day, we farmed gaming equipment, and at night we let our computers mine coins, earning two streams of income," Lao Lu explained. What began as a side activity during off-hours would eventually transform their lives in ways they never imagined.
The Early Marketplace
In those earliest days, Bitcoin transactions occurred primarily through QQ groups, where the digital currency traded for just 2-3 yuan each. A single computer running overnight could generate approximately 10 yuan worth of Bitcoin—decent supplemental income for these gaming professionals.
These seemingly ordinary gamers, often described as unkempt and focused only on their virtual worlds, accidentally became China's first Bitcoin miners. At the time, none realized how this nighttime side activity would eventually spark a wealth revolution.
Media's Role In Spreading Awareness
Contrary to popular belief that 36Kr was China's first Bitcoin media coverage, the distinction actually belongs to Computer Paper, a established IT publication based in Chongqing with nationwide readership.
The initial coverage didn't focus on Bitcoin's philosophical implications or potential to revolutionize finance. Instead, it provided practical, step-by-step instructions on how to install mining and wallet software—a true "mining tutorial" for the masses.
This practical approach helped democratize Bitcoin mining and contributed significantly to growing China's community of early adopters.
The Exchange Challenge
As mining activity increased, early adopters faced a significant problem: how and where to sell their mined coins. While the international community had developed platforms like Mt.Gox, Chinese users initially relied on Taobao and QQ groups for transactions.
This gap in the market was recognized by Yang Linke, a Wenzhou entrepreneur who operated sauna equipment in Shanghai. In 2011, after learning about Bitcoin from a programmer friend, Yang asked the practical question: "Can it make money?"
After understanding the basic mechanics, Yang invested tens of thousands of yuan to launch China's first Bitcoin exchange—BTC China. The Wenzhou businessman's daring character proved instrumental as his exchange eventually handled 80% of China's Bitcoin trading volume.
Early users recall the primitive systems: "Recharging required online banking transfers to two personal accounts held by Yang's wife and mother-in-law."
Building Community And Infrastructure
The years 2012-2013 marked a crucial period for Bitcoin's development in China. While Yang struggled with low trading volumes (sometimes considering shutting down due to meager monthly fees), another important figure was making contributions.
Liu Zhipeng, a geological engineer who worked within the government system, found himself dissatisfied with conventional career paths. Under the pen name "Chang Jia," this science fiction writer had won China's top science fiction award three times. His exploration for creative inspiration led him to discover Bitcoin.
In 2011, he co-founded Baibit, China's first vertical media platform dedicated to Bitcoin. The site collected and translated extensive Bitcoin information, with contributors including their Bitcoin wallet addresses to receive tips—some earning substantial Bitcoin through this method.
One regular contributor known as "QQAgent" would later become famous under his real name: Jihan Wu, who translated the Bitcoin whitepaper into Chinese in late 2011, helping Chinese audiences finally understand Bitcoin's true significance.
The Gathering That Changed Everything
2013 proved a landmark year for technology adoption in China: smartphone sales exploded, 4G licenses were issued, mobile internet blossomed, and internet entrepreneurship flourished. At this pivotal moment, a chance event placed a Beijing coffee shop at the center of China's Bitcoin landscape.
In March 2013, American student Jake Smith proposed paying with Bitcoin at Garage Cafe. Partner Zhao Dong accepted the payment of 0.131 BTC, and days later, Jake organized a Bitcoin enthusiast meetup at the same location.
The gathering attracted over thirty enthusiasts, including many who would become major figures in the space: Shen Yu, Zhao Dong, Li Xiaolai, and others. The meeting reached its climax when a mining machine created by "Pumpkin Zhang" (Zhang Nan'gen) demonstrated unprecedented hashing power.
This convergence of Bitcoin's Western libertarian ethos with Eastern network culture sparked similar gatherings nationwide. The community was transforming from dispersed individuals into a cohesive ecosystem.
The Rise Of Mining Hardware
As Bitcoin's price climbed from $10 to over $1,000 in 2013, mining hardware development became the industry's most profitable segment. Whoever created mining hardware effectively controlled "money printing" capability.
The first significant mining hardware emerged from "Fried Cat" (Jiang Xinyu), a prodigy who entered the University of Science and Technology of China at age 15. In 2012, after U.S.-based Butterfly Labs announced Bitcoin miner development, Fried Cat claimed similar capabilities on Bitcointalk forum and raised funds from the community—what many now consider the first ICO in crypto history.
Early investors reportedly gained thousand-fold returns when accounting for dividends. This success inspired "Pumpkin Zhang" from Beijing University of Posts and Telecommunications to develop his own miners, eventually splitting the global market with Fried Cat and Butterfly Labs.
Soon, virtually every prominent figure in the space invested in miner development, transforming Bitcoin from a hobbyist activity into a legitimate industry with complete infrastructure.
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The Crash And Crisis
Just as the industry seemed poised for exponential growth, disaster struck. On December 5, 2013, China's central bank and five other ministries issued the "Notice on Preventing Bitcoin Risk," denying Bitcoin's status as a currency and triggering a massive price collapse.
That night at Garage Cafe, nearly every computer displayed Bitcoin price charts. People anxiously sought exit opportunities, while the bold looked for buying chances. "Today we witness history!" one player told reporters, unaware that Bitcoin's darkest chapter was still approaching.
In February 2014, Mt.Gox—then the world's largest Bitcoin exchange—suspended trading, announcing shortly after that it had lost 750,000 Bitcoin to theft and was declaring bankruptcy. The event remains one of Bitcoin's greatest mysteries, with victims still seeking compensation today.
"Mt.Gox was like the Industrial and Commercial Bank of the Bitcoin world. Can you imagine ICBC collapsing?" commented an early Bitcoin investor.
The double blow of regulatory pressure and major exchange collapse sent Bitcoin into a two-year bear market that tested the faith of even the most ardent supporters.
The Human Toll
The extended downturn devastated many early participants. Zhao Dong lost 150 million yuan through leveraged trading and mining operations. Li Xiaolai reportedly considered leaving crypto entirely to open a billiards hall. Lao Lu sold substantial Bitcoin holdings at low prices, only to buy back at higher prices later, incurring significant losses.
The community also witnessed the mysterious disappearance of Fried Cat in early 2015. After facing development challenges and operational pressures, he vanished without trace—another unsolved mystery with speculation ranging from absconding with funds to unfortunate circumstances.
"His entry was recorded in a Southeast Asian country, but no exit record exists," revealed an insider. "Fried Cat probably didn't die, just went into hiding."
The difficult period revealed the challenges of bridging virtual concepts with physical reality. One of Lao Lu's friends lost 60 million yuan trying to develop mining chips without meaningful progress. Yang Linke reportedly sold most of his Bitcoin holdings, and many early participants gradually dispersed throughout the prolonged bear market.
Recovery And Reinvention
While many left during the difficult years, some doubled down on their commitment to the space. In 2014, Baibit secured its first round of funding, and Chang Jia left his government job to work on the platform full-time in Hangzhou.
Jihan Wu established Bitmain, which would grow to control 42.5% of Bitcoin's network hashing power through its two mining pools, dominating the mining industry. "Pumpkin Zhang" began giving interviews under his real name Zhang Nan'gen, with his company Canaan Creative attempting twice to enter Chinese capital markets.
The prolonged bear market eventually gave way to an unprecedented bull run that exceeded all expectations. Bitcoin's underlying blockchain technology gained significant attention after 2016, and Ethereum emerged as a new darling of the blockchain industry.
By early 2018, blockchain seemed to explode overnight. Global capital markets embraced blockchain speculation, media platforms proliferated, and blockchain talent became highly sought-after.
The frenzy reached its peak during the 2018 Spring Festival when influential figures from crypto, technology, and entertainment circles gathered in a "3 AM Unsleeping" WeChat group to discuss blockchain. Their conversations flooded across the internet, with one media participant joking that WeChat's chat record sharing function had never been so active.
The New Reality
The blockchain boom created interesting divisions. The "chain circle" often avoided discussing tokens and profits, fearing regulatory complications. Some veteran "coin circle" participants who bluntly stated that "blockchain's biggest application is speculation" found themselves repeatedly kicked out of and readded to groups.
The old guards from the "Peace Hotel" group seemed to collectively quiet down during the sudden blockchain wave. According to Lao Lu, those who truly made money in crypto showed little interest in the chain circle's activities: "The so-called chain circle consists of people without coins trying to scam coins. ICOs might bring hundred or thousand-fold returns, but compared to Bitcoin, that money means nothing."
The True Winners
When asked who truly profited from the boom, most pointed to mining hardware manufacturers. Investment bank Bernstein reported that Bitmain achieved staggering profits of $3-4 billion in 2017, surpassing the 25-year-old graphics card giant Nvidia. Canaan leadership publicly透露 they "expected to break 10 billion yuan in sales and 5 billion in profit for 2018."
The rapid wealth accumulation created surreal scenarios. One traditional investment veteran who visited a crypto billionaire in Japan observed: "He feels like he's already a god. A single person earning tens of millions in a day—do you think his worldview might collapse?"
This sentiment was echoed by the billionaires themselves: "I have money, but can others take it? This is digital assets, just strings of characters. Unless the entire world loses power, no one can take it away."
Many early participants barely recognize the current landscape. Those who once wore ordinary clothing while mining together now stand atop altars as preachers of new blockchain beliefs. When Lao Lu tried contacting old companions, they often didn't respond on WeChat. Days later, he might see a朋友圈 post: "Too many people contacting me on WeChat recently. If you have matters, please email."
Frequently Asked Questions
What made gaming computers suitable for early Bitcoin mining?
Early Bitcoin mining transitioned from CPU to GPU mining around 2010. Gaming computers typically contained high-performance graphics cards that could perform the specific calculations required for mining much more efficiently than regular computers, making them ideal for the task.
How did early Chinese Bitcoin enthusiasts acquire their first coins?
Most early participants mined Bitcoin using their computers rather than purchasing it. Before formal exchanges emerged, trading occurred through QQ groups and Taobao, with Bitcoin priced at just 2-3 yuan in the earliest days.
What was the significance of China's first Bitcoin exchange?
BTC China, launched in 2011, addressed the critical need for a reliable trading platform. At its peak, it handled 80% of China's Bitcoin trading volume, providing essential infrastructure that helped grow the ecosystem and establish valuation benchmarks.
Why did many early Bitcoin proponents struggle during the 2014-2015 bear market?
The combination of regulatory restrictions in China and the Mt.Gox exchange collapse created a prolonged downturn that tested even strong believers. Many incurred significant losses through leveraged trading, poorly timed investments, or business ventures that couldn't withstand the extended winter.
How did early Bitcoin mining differ from today's mining operations?
Early mining was accessible to individuals with standard computers, particularly those with gaming graphics cards. Today, mining requires specialized ASIC hardware and operates at an industrial scale with massive mining farms consuming substantial electricity resources.
What lessons can be learned from the experiences of these early adopters?
Their journey demonstrates the importance of understanding fundamental technology, maintaining perspective during market cycles, and recognizing that early advantage doesn't guarantee continued success in rapidly evolving technological landscapes.
Reflections On A Revolution
Today, Lao Lu has largely stepped away from the crypto space. He works in industries completely unrelated to Bitcoin or blockchain but maintains comfortable earnings and what he describes as a "lighthearted attitude toward honor and disgrace."
"We were once abandoned by the times, and now the times have pushed us to another climax," Lao Lu remarked after lighting a cigarette. "Never think you're a god. Everyone is just a game piece, a leaf boat floating on water."
His words capture the essential humility that often follows extraordinary experiences: the recognition that today's peak might become tomorrow's abyss. This ongoing Bitcoin传奇 continues unfolding, with its final chapter far from written.
The story of China's earliest Bitcoin participants remains a testament to how technological innovation can emerge from unexpected places, create unprecedented wealth, and ultimately teach profound lessons about humility in the face of unpredictable change.