Money

Man Buys $27 Worth of Bitcoins, Forgets and Cashes In $886k

Man Buys $27 Worth of Bitcoins, Forgets and Cashes In $886k

Man Buys $27 Worth of Bitcoins, Forgets and Cashes In $886k

Kristoffer Koch was writing a thesis in 2009 when he came across a new peer-to-peer digital currency called Bitcoin.  He invested 150 kroner ($27 dollars) to purchase 5,000 Bitcoins and then forgot about his investment.  That was until 2013 when media and governments around the world started paying closer attention to Bitcoin and its roller coaster price fluctuations.

According to the guardian, Kristoffer exchanged one fifth of his Bitcoin stash to purchase an apartment in Toyen, one wealthier areas in the Norwegian capital.  With 4,000 Bitcoins remaining his investment is now worth approximately $708,800.  If he owned all 5,000 Bitcoins then his investment would be worth $886,000.  This was calculated when the story broke and the price was at $177.20.

As of this recent update, Bitcoin closed at 203.40 which means that his original investment would now be worth $1,017,000 USD and the remaining 4,000 Bitcoins worth $813,600 USD.

What is Bitcoin?   Bitcoin is the first decentralized digital currency.  Bitcoins are digital coins you can send through the internet in exchange for goods, services and even other currencies.  The peer-to-peer exchange of Bitcoins is recorded on a public log which authenticates and records the transactions.  This is known as the Blockchain and is stored on a private computer network.  By the way, the network has more computing power than the top 500 supercomputers combined.

How many Bitcoins are there in circulation?  According to Blockchain, there are currently 11,899,550 Bitcoins in circulation.  Once 21 million Bitcoins are distributed, issuance of the digital currency will cease.  Bitcoins are released by operators of the private computer network according to predetermined calculations.  The operators of these computers are known as miners and they are rewarded with Bitcoins and small transaction fees.

Where can I purchase Bitcoins?  Bitcoins can be purchased through several exchanges, brokers and local people although it depends which country you are located.  Use extreme caution in transferring money and make sure to do your homework before transferring money.  HowtoBuyBitcoins allows you to search websites, exchanges and brokers in your respective country.

A few of the largest Bitcoin exchanges in the US include Coinbase, Mt.Gox and CoinMkt.

Let us know what you think?  Is it worth it to take a chance on Bitcoin?

Leave a Comment