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Man buys $27 of bitcoin, forgets about them, finds they're now worth $886k

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.

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.

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.

In April 2013, the value of bitcoin peaked at $266 before crashing to a low of $50 soon after. Since then, bitcoin has seen large fluctuations in its value, most recently following the seizure of online drugs marketplace Silk Road, plummeting before jumping $30 in one day to a high of $197 in October.

Continues: http://www.theguardian.com/technology/2013/oct/29/bitcoin-fo...




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Damn

All I had to do was invest $100 a few years ago and I would be set?

...

Once he starts withdrawing the daily maximum of $1000, it should only take him about two years to get his money.

All rights reserved and no rights waived.

time to cash out and buy

time to cash out and buy p.m.'s

~ Engage in the war of attrition: http://pacalliance.us/redamendment/

I hate reading articles like

I hate reading articles like this because I wind up kicking myself for the next week. Woulda, coulda, shoulda...

Liquidity?

Can you cash out?

Convert back to fiat?

How?

How hard is it to do that?

Can you buy a house with it?

What about a car?

What about shopping on Amazon?

payment only in bitcoin

will make this feasable. So we all need to grab some chit that is paid off, make it available to the market and only accept bitcoins in payment at a far less rate than the dollar, meaning make it cheaper than a dollar based value, and woolah we have a new currency. All we need to do to create a new and dominant currency is to make it's value worth more that a dollar based on current costs of living. We may have to go used items first unless people want to buy new things, make them available on the market and lose money. There is something to this bitcoin thing, we just have to figure out how to make it big.

Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine

The R3volution requires action, not observation!!!!

If one begins to become a virtual stacker ...

What about sales tax?
Capitol gains?
The other possible criminal liabilities?
What if the Feds shuts it down tomorrow?

Until the laws are changed to allow for competing currencies ...

There is always going to be a risk premium that will limit its uses.

A smart man would dabble.

But beyond that ... too risky.

God Bless.

if he does convert it to USD

then yes it is subject to Capital Gains Tax.

As long as there is a Government, they will ALWAYS find a way to steal a piece of that pie. Even if it means using force or torture.

His name is Edward Snowden

What is Capitalism?
http://youtu.be/yNF09pUPypw

You use a service like coinbase.

It is as easy as paypal and works the same, it connects to your bank account to convert to USD. Yes you can buy anything. You can buy gift cards and purchase at major stores http://www.egifter.com/bitcoin/. send bitcions, request bitcoins, etc.

Easy, easy, so easy.

coinbase.com

So ...

If I had the 5000 bitcoins and I provided a routing number ...

I could instantly deposit approx. $1 million into my traditional checking account?

Is it that simple?

Uh..no

You can swap them into cash at an exchange, then wire the cash from the exchange to your bank. However, the exchanges have limits on the amounts you can move. In addition, once you enter the exchange for cash, you are subject to all the banking regulations. Large cash deposits are reported as suspicious. It is not an easy thing to convert 5000 bitcoins to cash in your bank. It would be a lot easier to barter with someone directly who would give you something of value for the bitcoins.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

I am assuming that you would have to pay ...

capitol gains.

If you file that ...

Are you subject to criminal charges?

The dollar is the only legal medium of exchange.

Can you list it as an asset when applying for a loan?

Bitcoins aren't illegal, nor is barter

..but I am not a lawyer. You certainly would have to pay capital gains tax,though. Even if you buy a pack of gum and then sell it for more than you paid for it, you are required to pay a tax on the gain.

I was intrigued by Bitcoin when I first read about them, and I researched it. I don't own any though. I really think that they only are useful if you don't want to use the banking system (i.e. cash) at all. If you have something other than cash that you are willing to trade for bitcoins and vice versa, then it makes sense. Once the banking system enters into the equation, you don't have much benefit over cash except possibly lower transaction fees.

I wondered about the guy who ran Silk Road. His profit was all realized in Bitcoin. How did he ever think he was going to be able to cash millions of dollars worth of Bitcoin out?

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

"Bitcoins aren't illegal"

That is what Bernard von NotHaus thought when he started selling Ron Paul commemoritive liberty coins.

Maximum you can sell or buy is 50 bitcoins a day

with coinbase.

But yes it is that simple.

Trying to understand

Trying to understand "bitcoin" is hurting my brain. I just can't get the concept. What is NOT fiat about it? What gives it its value?

Bitcoins are the modern equivalent of split tally sticks

In the middle ages, split tally sticks were used instead of coins for making transactions:

https://en.wikipedia.org/wiki/Tally_stick

A stick with marks on it representing value was split in half and one half was given to each party participating in an exchange. The natural grains of the wood could not be counterfeited to match up with the other half, and one party could not unilaterally change the marks on his half of the stick because they wouldn't match up with the other half.

Tally sticks had no intrinsic value (except maybe as firewood), they just could not be counterfeited and served as a record of exchange. This is really the same as Bitcoin, which has no intrinsic value, but serves as a counterfeit-proof record of exchange.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

Interesting - Thanks

Though the best description that I have heard for Bitcoin, and I tend to agree is that it is essentially an electronic collectible, more than a true currency.

Central Banks printing, government deficits and

It is also a costless way to transfer currency to another entity in any country (easily convertible to local currency)

If you leave a country, you could login in another country and get your bitcoins converted to the local currency.

Not in the banking system.

It is fiat, just not government fiat.

Only 21 million bitcoins ever.

How do you transfer to a fiat

How do you transfer to a fiat currency (USD) if nothing is backing up the fiat local currency? So does that mean you can only exchange it to rupees or juans or other currencies backed by gold? It's as if Obmacare is using the same lingo IE... "market exchanges" ????

If you could only trade gold for gold

it would be worth nothing. The only way a currency is worth anything is if it can buy the things we need and want, for bitcoin to work successfully, they are going to have to appeal to the used good dealer market first, and sign a whole lot of people up. It is gonna have to go psuedo black market first than go mainstream.

Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine

The R3volution requires action, not observation!!!!

What?

.

$215 close today

$1,075,000 for $27 investment 4 years ago

reminds me of this headline:

"Man buys stock at garage sale, finds 130 million surprise"

http://www.celebritynetworth.com/articles/entertainment-arti...

HOLY SHIT~!

THAT is a hell of an investment.