My Adventure With Bitcoin
Last month I decided to buy some bitcoin. Why? The price was going up! I was guaranteed to make some money! What could go wrong?
What is this stuff?
Well, not quite like that. Bitcoin has interested me for a while — what currency has been the subject of such speculation? How often do new currencies become popular enough to actually use? Or has such a mysterious creator (or group of creators)?
So I decided to buy some bitcoin. I knew that it was likely I would lose some money, but hey, maybe the price would keep going up! At the time I was visiting some friends in Chicago so I didn't have very regular internet access, but I thought it would be a good time. The price had been rocketing upwards and I wanted to get in before it was "too late".
Getting in too late
Take a look at that chart. Always ahead of the trend, I put in my order on April 2nd. Because I didn't want to deal with the hassle of signing up with an exchange, I purchased my coins through Coinbase, a YC-funded start-up that seems to make money on bitcoin transactions.
Unfortunately the trade was delayed due to Coinbase's limited ability to handle the recent interest in bitcoin, and my purchase ended up being exercised on April 9th, at the peak of the madness. For around $650, I purchased 2.7 bitcoins. I checked the price the next day... hooray, I'm poor!
A lesson learned
I knew that buying bitcoin was going to be risky, but now I can truly say that I've lost money via speculation. Hopefully it will prevent me from similarly dumb investments in the future. In my defense, I only purchased bitcoin with the understanding that my money was about to dissappear forever. I consider this lesson to have been worth the price.
Bonus points: what should a pirate do with his coins?
Having exhausted my willingness to lose money speculating on bitcoin's value, I've recently explored using it as a currency. Bitcoin seems to be good for buying shady things, so I attempted to purchase a "novelty ID" from the fine folks at ID Chief.
So I took a nice photo, scanned a signature, gave them the name and home address of one of my friends, and sent them some bitcoin. Although communicative while helping me pay them, I haven't heard anything since. Fellow youth of America: stay in school, work hard, and don't trust strangers on the internet who sell fake IDs for anonymous currencies.