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From $27 To $886,000 In Four Years: Name The Investment

Submitted by Tyler Durden on 10/29/2013 21:12 -0400

Not Tesla, Not Apple, Not Netflix...

Kristoffer Koch invested 150 kroner ($26.60) in 5,000 bitcoins in 2009, after discovering them during the course of writing a thesis on encryption. He promptly forgot about them until widespread media coverage of the anonymous, decentralised, peer-to-peer digital currency in April 2013 jogged his memory.

...

The meteoric rise in bitcoin has meant that within the space of four years, one Norwegian man’s $27 investment turned into a forgotten $886,000 windfall.

...

Bitcoins are stored in encrypted wallets secured with a private key, something Koch had forgotten. After eventually working out what the password could be, Koch got a pleasant surprise: "It said I had 5,000 bitcoins in there. Measuring that in today's rates it's about NOK5m ($886,000)," Koch told NRK.

...

Koch exchanged one fifth of his 5,000 bitcoins, generating enough kroner to buy an apartment in Toyen, one of the Norwegian capital’s wealthier areas.

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Tue, 10/29/2013 - 23:01 | 4103676 eddiebe

I'm sure the central bankers are aware of the threat and are working on destroying bitcoin one way or another. At this point it is a fringe annoyance. I'm afraid at this point it's a bit late to get on that train.

Tue, 10/29/2013 - 23:30 | 4103734 wattsnotsaid

There are about 10 million bitcoins valued at ~$200 each or $2B total.

Bit coins are designed to increase supply slowly to a max of 20 million bitcoins.

If they are to become a significant factor in world trade their value will have to increase 1000 times.

Preposterous the bit coin controllers say. So they increase supply.

Now they know what its like to sit at the FED.

Tue, 10/29/2013 - 23:51 | 4103764 One And Only

Bitcoins are divisible. Kind of like dollars.

You can have $1 or you can have 4 quarters; or 100 pennies.

But bitcoins can't be created out of thin air or counterfeited.

So yes, the value of bitcoin will increase against it's competition over time.

Wed, 10/30/2013 - 00:22 | 4103811 Tall Tom

Isn't there 100,000 Satoshis to One Bitcoin? At 10 Million BitCoin there are One Trillion Satoshis. I would say that One Trillion Satoshis can adequately service the needs of 7 Billion People.

Tue, 10/29/2013 - 23:41 | 4103754 yofish

I call bullshit.

Tue, 10/29/2013 - 23:45 | 4103759 ac3

My name is crime and I don't pay......

Wed, 10/30/2013 - 00:10 | 4103797 dark pools of soros

wait till Amazon starts taking BTC to piss off ebay/paypal

Wed, 10/30/2013 - 00:47 | 4103833 Haole

One can already pay for items ordered on Amazon and eBay, or countless other products on the net, with BTC through this intermediary payment processor for instance.

https://all4btc.com

Wed, 10/30/2013 - 00:51 | 4103837 PT

Bottom line is, for four years it has worked. Okay, okay, you really didn't want to buy into that last peak ... yet.
In theory this might happen, that might happen, but anything might happen. Just admit that the grapes have actually been quite sweet for a while. For those inclined, just another arrow in their bow.

Wed, 10/30/2013 - 07:36 | 4104114 sgorem

.......quiver............

Wed, 10/30/2013 - 01:50 | 4103888 ebworthen

My advice to Bitcoin investors: "Make hay while the sun shines."

Get out now before the black boot boys come to burn your fields.

Wed, 10/30/2013 - 01:54 | 4103891 Peter Pan

Bitcoin......enjoy it while it lasts. It will either die or it will be eventually controlled by the masters of the system.

Wed, 10/30/2013 - 02:46 | 4103923 arnoldsimage

what a "bit" of good luck. cheers to you.

Wed, 10/30/2013 - 06:16 | 4104012 tradewithdave

Readers were introduced to bitcoin on May 18, 2011. To fully appreciate the model you need to consider the implications of:

"The receipt IS the transaction."

"A public record of all transactions in the blockchain"

"Triple entry accounting"

"Bitcoins ability to serve as a means testing device"

"The implications of a network sufficiently powerful to eventually crack PGP"

"Squaring Zooko's Triangle"

www.tradewithdave.com

Wed, 10/30/2013 - 07:28 | 4104099 JPMorgan

Good on him, I certainly didn't have the foresight to invest a little of cash into bitcoin back then.

But it was just pure luck, as he had forgotten all about it, he couldn't even recall his bitcoin wallet password when he realised what he had.

I'm a little unsure about the future of this digital medium of exchange myself though.

Obama was apparently overheard asking if bitcoin was something he needed to concerned about.

Hence the more popular it becomes the more likely they will want to try and gain some kind of control over it imho.

Wed, 10/30/2013 - 07:41 | 4104122 Mesquite

"Hindsight is 2020..."

I, also, can look back on quite a few missed opportunities..

I am presently learning (or trying to..), to not be so invested

in convincing others...

"More will be revealed..."

Tnx all, for the various bits of info...

Wed, 10/30/2013 - 09:06 | 4104325 Canoe in the Desert

Bitcoin = Vaporware?

Wed, 10/30/2013 - 11:04 | 4104728 Reptil

no, bitcoin is not vaporware.
but it realies on a functioning internet. in fact... all our business transactions do.
now there's a black swan for ya.
hehehe

Wed, 10/30/2013 - 12:18 | 4105026 Missiondweller

GoldBullionDebitCard.com

The difference between Bitcoin and Gold is that one has a 5,000 year history.

The gold bullion debit card, when imlemented, will make your country's currency irrelevant.

From $27 To $886,000 In Four Years: Name The Investment

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