But investing in the virtual currency is not without risk. Do you know how bitcoins pretense? This info-graphic by Confused explains in clear terms what Bitcoin is and how it works:
An offhand $26 investment in bitcoins has turned into an $850,000 windfall for one definitely honored Norwegian man.
According to Norwegian news outlet NRK, Kristoffer Koch decided regarding the subject of a whim to invest 150 kroner (roughly $26) in 5,000 bitcoins in 2009, soon after the Bitcoin network first came into existence. Koch is said to have discovered the virtual currency even if writing a thesis upon encryption and settled to put down a little investment out of sheer curiosity.
Unaware of just how accurately-to-take comport yourself bitcoins would soon become, Koch says he promptly forgot roughly his digital stash; that is, until a flurry of media coverage just about bitcoins caught his attention earlier this year.
Koch reportedly had to scour his memory for the password to the encrypted billfold that held his investment. When he finally figured it out in April, he says he was amazed by what he found.
It said I had 5,000 bitcoins in there. Measuring that in todays rates its roughly five million kroner, Koch told NRK, according to a Guardian translation.
Thats roughly $850,000.
Gizmodo points out that Kochs small initial investment is worth even more today. With a single bitcoin currently priced on the subject of $210, Kochs investment would be worth on intensity of $1 million.
Koch isnt the on your own person who has benefitted from the rise in bitcoins worth and popularity. According to an April relation by Bloomberg Businessweek, the self-starter of the worlds first decentralized, peer-to-peer digital currency has spawned many overnight millionaires.
Im happy to be considered a believer of the Bitcoin millionaires club, 30-year-very old Jered Kenna told the news outlet. Kenna reportedly bought his first batch of bitcoins 5,000 of them at 20 cents each.
Make no error, this is no interchange than any late buildup high-tech buildup. Its dangerous, its volatile, and you should not invest one more than you are prepared to forfeit all together, an anonymous Bitcoin miner told a blogger for The Huffington Post in May.