Cryptocurrency: Has the Era of Primitive Accumulation Come to an End?
CryptoBit News Today1 min read
A dramatic surge in bitcoin enabled a Norwegian man's $27 investment to turn into an overlooked $886,000 windfall over four years. A Norwegian student, Kristoffer Koch, invested 150 kroner ($26.60) in March 2009 to buy 5,000 bitcoins for his university thesis on encryption, promptly forgetting the investment. Four years later, when bitcoin's soaring value caught widespread media attention, Koch remembered his forgotten windfall. Measuring the value at current rates, his investment was then worth around $886,000.
The Era of Primitive Accumulation
After a full day attempting to recall his encrypted wallet's password, Koch cashed in 1.1 million kroner ($186,000) from selling a fifth of his bitcoins. Koch admitted that he could never have imagined, even in his wildest dreams, that the currency would climb so dramatically. Using the money, Koch then bought an apartment in Toyen, one of Oslo's wealthier areas, worth 2.6 million kroner.
Volatility and Evolution
The volatile nature of bitcoin became apparent in April 2013 when its value peaked at $266 before crashing to $50 soon after. The currency subsequently experienced major price swings, plunging after the shutdown of the online narcotics market Silk Road before climbing $30 in a single day to reach $197 in October. Transactions have evolved, with a few British pubs accepting bitcoins directly, and on 29 October, the world's first bitcoin ATM went live in Vancouver, Canada.
The digital currency is being used more frequently for online purchases, although speculation makes its valuation exceptionally volatile.
