Invested $27 and got back $886,000

Discussion in 'BlackHat Lounge' started by Dioni, May 31, 2015.

  1. Dioni

    Dioni Senior Member

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    Kristoffer Koch was writing a thesis on encryption in 2009 when he spent about $27 to buy 5,000 bitcoins.
    Life went on, and he forgot about his investment until bitcoin?s wild price swings earlier this year resulted in a slew of articles about bitcoin.
    Bitcoin is a virtual currency that isn?t controlled by a central bank. Instead, bitcoins are created through a process called mining, in which a computer tries to solve a cryptographic problem. The total supply of bitcoins is capped, which has led to comparisons with assets like gold.
    Koch?s original $27 investment is now worth about $886,000, Koch told the Norwegian broadcaster NRK. That?s a return of 3,281,500% in four years.
    Koch has used one-fifth of his bitcoin stash to buy an apartment in Oslo, Norway, the Guardian reports.

    Damn I just read it from a blog.
    Also check bitcoin history https://en.bitcoin.it/wiki/History

    October 5 Exchange rates http://newlibertystandard.wikifoundry.com/page/2009+Exchange+Rate by New Liberty Standard. $1 = 1,309.03 BTC (and theymos thought NLS was overcharging[3])
     
  2. rushuna

    rushuna Regular Member

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    Damn... that's a crazy story. Why did he originally buy the bitcoins?
     
  3. CowboysNation

    CowboysNation Registered Member

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    Fuck should have bough like 20k bitcoins ...
     
  4. PHPInjected

    PHPInjected Elite Member

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    Yeah, I remember when they were like 25 cents. I hate myself for not investing when the market crashed in February.
     
  5. growmyinsta

    growmyinsta BANNED BANNED

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    such a crazy story, need to start taking risks like these!
     
  6. Repulsor

    Repulsor Power Member

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    I was about to buy bitcoins when they were $100. Didnt buy, and I look back after few months, they were over $1000 each.

    Duh! :(
     
  7. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    I nearly got into mining when I could do about 1 Bitcoin per day with a 5770 , but ended up not doing it.
     
  8. Fehz123

    Fehz123 Registered Member

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    Ah bitcoin... hindsight is killer but the price movement on bitcoin is so volatile that there is still plenty of opportunity for serious risk takers.
     
  9. babaganush

    babaganush Newbie

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    Thats crazy!, i have been thinking of gambling on bitcoins...but all advice bets against it. although it is very intriguing
     
  10. Elliot305

    Elliot305 Jr. VIP Jr. VIP

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    The way I look at it, he probably ended up making MORE money with purchasing $27 worth versus $1000 worth back then. Why is this? Well the very reason why he has 800k today is cause he, more or less, forgot about bitcoin since he only put in an nominal amount. He had put in any amount of money that he deemed as an investment, or as something worth withdrawing if he was in a bind, he would have paid much closer attention to the price.

    Of course I'm speculating that he doesn't have the biggest set of steel balls in the world and wouldn't have rode his initial investment the whole way. You have to consider his financial status at that time to get a range of where he would probably sell his stash if he knew the price. By forgetting about his $27 investment, my take is he made way more money than in any other situation. If he invested 1k at that time, he very well may have made a lot less or perhaps even lost money due to the crash from $30 back to $2.
     
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    Last edited: Jun 1, 2015
  11. DJPaulyD

    DJPaulyD Power Member

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  12. tony_d

    tony_d Elite Member

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    I certainly didn't expect a legit thread when I saw the title...
     
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  13. whynotmakeit

    whynotmakeit Power Member

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    Don't forget about the poor guy who threw his old drives away with a couple of million $ worth of bitcoins on them.....
     
  14. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    Throwing away harddrives is stupid in the first place, not even counting having something valuable. Most Modern ones are pretty reliable and won't have any failures if there is adequate cooling. One can never have enough storage, even 750TB is just a decent amount.
     
  15. DJPaulyD

    DJPaulyD Power Member

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    He found that HD at the junk yard.