AfterDawn: News

Man buys $25 of Bitcoins in 2009, now worth $848,000

A man in Norway received a very pleasant surprise when he realized that 5,000 Bitcoins he bought and forgot about in 2009 had risen in value to $848,000.

Kristoffer Koch bought 150 kroner ($25.43) worth of Bitcoins in 2009 when researching encryption. He discovered Bitcoin as part of his research. In the years that passed, Koch completely forgot about his purchase.



Bitcoin gathered some more attention in the media in recent times, and Koch decided to check how much his ~$25 investment was now worth. To his surprise, the value of his small investment has grown to around $848,000.

He began converting his Bitcoin into cash and was raking in $75,000 per day. With the money he has already bought an apartment that he is currently renovating.

Written by: James Delahunty @ 31 Oct 2013 23:30

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• 10 comments

• dali

  How's this even possible? Please, could anyone be kind enough to explain the whole process to me as if I was dumb (because, in this particular matter, apparently, I am)?
  

  "You know, it seems that quotes on the internet are becoming less and less reliable." -Abraham Lincoln.

  1.11.2013 00:32 #1

• nonoitall

  Put simply, supply and demand. More people are using Bitcoin and investing in it, but by design the number of BTC in circulation increases at a slow, steady rate (and will stop increasing altogether a few decades down the line). Since more people want to use the same number of BTC to do more things, the value of each BTC must rise.
  

  me on the Dragon Ball Encyclopedia
  me on YouTube

  1.11.2013 04:29 #2

• dali

  I still can't get it. Of course, I understand that the amount of people who want bitcoins has grown much faster than the computational power needed to create them, but that's too much of a rise. Where does the money come from when this man converts the bitcoins into cash? And this man's position isn't unique. Or, at least, it shouldn't be.
  
  Please notice that the concept of the bitcoin itself is something I still find quite hard to understand.
  

  "You know, it seems that quotes on the internet are becoming less and less reliable." -Abraham Lincoln.

  1.11.2013 06:10 #3

• dEwMe

  Just wait until people realize bitcoins are just digital and truly worth nothing. I wouldn't take bitcoins for anything. I just don't trust the system for a second.
  
  

  Just my $0.02,
  
  dEwMe

  1.11.2013 14:43 #4

• dEwMe

  Damn double post sorry...

  1.11.2013 14:43 #5

• gnovak1

  From 25.00 to 848,000.00 in 4 short years? I don't even now what a Bitcoin is. Does anyone know where i can find one for $25.00?

  1.11.2013 15:10 #6

• nonoitall

  Originally posted by dali: I still can't get it. Of course, I understand that the amount of people who want bitcoins has grown much faster than the computational power needed to create them, but that's too much of a rise. Where does the money come from when this man converts the bitcoins into cash? And this man's position isn't unique. Or, at least, it shouldn't be.
  
  Please notice that the concept of the bitcoin itself is something I still find quite hard to understand.
  There's not a set amount of "computational power needed to create them". No matter how much computational power is applied to mining, the same return is generated. The struggle between miners is to determine who gets the reward, not how much or how often the reward will be. Like I said, by design only a steady amount of new BTC enter the network.
  
  Like any currency, BTC are bought and sold at exchanges. And you're right, he's not unique. Check this out for a primer on BTC.
  
  Originally posted by dEwMe: Just wait until people realize bitcoins are just digital and truly worth nothing. I wouldn't take bitcoins for anything. I just don't trust the system for a second.
  
  The US dollar doesn't have any intrinsic value either. Most currencies don't. It's all about their perceived value. If the local coffee shop will take $2 USD and give me a coffee, then to me $2 USD can represent a cup of coffee. If that coffee shop will also take 0.01 BTC and give me a coffee, then 0.01 BTC is worth every bit as much as $2 USD for that purpose. Given the dissatisfaction expressed toward the governments' (mis)management of their currencies, I don't know that I'd assign any more trust to their systems than to BTC.
  
  Originally posted by gnovak1: From 25.00 to 848,000.00 in 4 short years? I don't even now what a Bitcoin is. Does anyone know where i can find one for $25.00?
  Check this out.
  
  At the present rate of exchange, I doubt anyone will give you 1 BTC for $25.00 USD, unless they are feeling very generous. You could buy about 0.12 BTC for that price at a number of exchanges though. Coinbase seems to be a popular one for newcomers thanks to their simplicity and reasonable fees.
  

  me on the Dragon Ball Encyclopedia
  me on YouTube

  1.11.2013 18:44 #7

• dali

  Great post, nonoitall. It clarifies a lot. Thanks
  

  "You know, it seems that quotes on the internet are becoming less and less reliable." -Abraham Lincoln.

  2.11.2013 02:12 #8

• bandoogie

  I thank you for the post as well nonoitall. Given all of this, is bitcoin currently worth investing in?

  3.11.2013 04:26 #9

• Mrguss

  Originally posted by dali: I still can't get it. Of course, I understand that the amount of people who want bitcoins has grown much faster than the computational power needed to create them, but that's too much of a rise. Where does the money come from when this man converts the bitcoins into cash? And this man's position isn't unique. Or, at least, it shouldn't be.
  
  Please notice that the concept of the bitcoin itself is something I still find quite hard to understand. We accept reality as a Perception of reality.
  
  That is why money, objects and even actions: as a value, accepted by "almost" all of us.
  ...more like a psychological & manipulative "Reality" used by Governments, Banks, Churches, Corporations, Scamers, Mafia, etc. to control the sheeps.
  
  Vancouver, Canada:
  World's first bitcoin ATM.
  http://www.cbc.ca/news/technology/world...ouver-1.2286877
  

  +5000

  3.11.2013 17:34 #10