TechSpot

Man forgets about $27 Bitcoin investment made four years ago, now worth $1M

By Shawn Knight
Oct 29, 2013
Post New Reply
  1. Four years ago, Christopher Koch was working on a thesis paper about encryption. His research led him to the budding digital currency known as Bitcoin and on a whim, purchased 5,000 Bitcoins for just $27. He quickly forgot all about...

    Read more
     
  2. ikesmasher

    ikesmasher TS Evangelist Posts: 1,966   +389

    I first read about bitcoins when worth only a little more than that.
    Sadly at the time I was what, 12? 13? and had no money and no way of persuading my paranoid parents that it was indeed legitimate. Nor did I really know if they were gonna skyrocket that much.

    Seeing things like this makes alot of us want to kick ourselves, I think :p
     
  3. davislane1

    davislane1 TS Evangelist Posts: 1,527   +596

    Nice return but terrible use of the funds. Given the high risk of Bitcoins and the long-term viability of $1,000,000 in a "wealthy" community, he would have been better served by rolling his Bitcoin position into some other asset(s) and going for a more economical abode. Never bank a lifestyle on a single random investment.
     
  4. captaincranky

    captaincranky TechSpot Addict Posts: 10,976   +955

    Every time I climb up on my soapbox in the town square, and preach my sermon about, "currency isn't real", and as for the national debt I ask, "how is it possible to owe yourself money that doesn't exist yet", they all wander away.

    I'm starting to picture myself as the old man in this story. "The townsfolk went insane when they drank from the contaminated well. The old man in the cabin outside of town, got his water from the creek, and so he wasn't affected.

    Soon he found that no longer would anyone give him the time of day, and so he became isolated and very lonely.

    Them one day, he could abide being his only companion no more, went into town, and drank from the well.

    The townsfolk rejoiced, because the old man was now same like the rest of them........Yeah, Bitcoin.
     
    Burty117, Timonius and Raoul Duke like this.
  5. Ahmed90

    Ahmed90 TS Member Posts: 96   +9

    I remember the day when I used to sell bitcoins at 3~5$ then it started to jump oh man its 200$ now :/
     
  6. RzmmDX

    RzmmDX TS Enthusiast Posts: 207   +27

    Meanwhile, EVE Online currency and WoW Gold continues to fall in relation to real currency.
     
  7. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,153   +737

    I assume you're familiar with the allegory of the cave. If not, check it out. )
     
  8. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,153   +737

    That's because gaming currency can be created in the game. Bitcoins can't be created, there will never be more than around 21 million if I remember right. That means they will go up and up over time to the point where you have to use fractions of one to buy anything. It's deflation, which is a really scary thing when it happens to a real currency.
     
  9. Jim$ter

    Jim$ter TS Enthusiast Posts: 138   +24

    I remember when they were a few bucks too. I wish I would of bought some but there was no easy way back then and it was pretty confusing.
     
  10. How is it a terrible use of funds? He only paid $27 not $10,000. I think he got a pretty good return for that $27.
     
    Matt12345170 and cliffordcooley like this.
  11. cliffordcooley

    cliffordcooley TechSpot Paladin Posts: 6,248   +1,549

    At least there are a few that can think of the confusion as past tense
     
    Jim$ter likes this.
     
  12. captaincranky

    captaincranky TechSpot Addict Posts: 10,976   +955

    Is that when Luke Skywalker goes into the cave and battles himself?
     
    ikesmasher likes this.
  13. davislane1

    davislane1 TS Evangelist Posts: 1,527   +596


    If you would go back and re-read my post, I was criticizing how he's chosen to spend the capital gain, not his decision to purchase $27 worth of Bitcoins in the past. Using funds from a lucky investment in a high-risk asset to pay for a significant lifestyle upgrade -- which is what the article conveys -- is an exceedingly poor and short-sighted use of the money because 1) the cost of the lifestyle upgrade is persistent and 2) the remaining gains are both one-time and at risk. Ergo, buying an apartment in a wealthy part of town was a terrible use of funds.
     
  14. dennis777

    dennis777 TS Enthusiast Posts: 281   +32

    Hahahaha so what is bitcoin :|
    yes I have been living in a cave
     
  15. ET3D

    ET3D TechSpot Paladin Posts: 992   +31

    Buying an apartment is typically a good investment.

    Anyway, good for him. I didn't take bitcoins seriously, always thinking it was better to spend my CPU time on folding or some other thing which might help make the world better. I'm kind of regretting it.
     
  16. Polaco

    Polaco TS Rookie Posts: 45   +8

    Oh God! :(
    I can't stop thinking how would be my life if I had invested in some bitcoins at that time.
    ( the max amount of Bitcoins to be created will be 21 millon )
     
  17. spencer

    spencer TS Enthusiast Posts: 204   +22

    You really should look up the allegory of the cave. I hope you'll read it, it was written by plato and may put things in a better perspective for you; although I doubt it.
     
  18. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,153   +737


    lol, no, but good guess. It's very similar to the story you wrote out about the old man and the well. But if you want to make that point without telling the story, you could say it's like the allegory of the cave. The cave story has a different ending though.
     
  19. Melvina Roselyn

    Melvina Roselyn TS Rookie

    I Agree. He would have been better off if he had bought a few homes for that amount and put them up for rent. With the extra income he could have used it for some other venture or saved it up. He could still sell the homes for a lot more if he had to and he would end up winning.
     
  20. cliffordcooley

    cliffordcooley TechSpot Paladin Posts: 6,248   +1,549

    I'd love to go vulture hunting one day (lawfully permitted of course) and reduce the population to those who don't think that way.
     
  21. I also remember Bitcoins when they first came out. I thought this idea would just fizzle away-it sounded too weird to actually work. I used to invest in stocks and thought what would I have to lose if I spent $100 on bitcoins. I wish I could've seen into the future, would've been $5 million richer.
     
  22. bob333

    bob333 TS Rookie Posts: 30

    What the F was I doing in 2009. :(
     


Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.