When $1 was exchanged for 1,300 bitcoins, Why was this done at the time?

[internetguru]

Why did someone buy bitcoins for that much?  What did they do with it?  Thought it was cool?

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[cfrm]

Same reason people buy it today. Because they believe in the system / hope they can make a quick profit.

[coastermonger]

You had to start somewhere, and this was essentially the "cost" of being bothered to set up the client and run the miner on your CPU to find 50 BTC blocks at the time.

Now, ask yourself what it will be like when a $5,000 miner can net you 0.0001 BTC per day.

[bryant.coleman]

Back then, Paypal and CC were accepted for buying the coins. I think Paypal banned BTC sites sometime in 2011.

[Gabi]

Back then, Paypal and CC were accepted for buying the coins. I think Paypal banned BTC sites sometime in 2011.

Even if they don't ban it, using paypal or CC to buy coins means being scammed by chargeback scammers. That is the main reason why today no one sell coins for paypal or CC

[jongameson]

I went to Ebay to look for bitcoinz back in February 2009 and found some guy selling like 6000 BTC for $360, with a reserve or something.  Bid it up to $450 and still reserve not met, so gave up.  Ebay is a big scam anyway

[matriculator]

Aren't bitcoins the main currency in deepweb market places? It's probably so they could buy things with more anonymity on deepweb market places.

[Cryptolator]

I don't even understand the question, am I the only one ?

[mb300sd]

I'd buy something for $1 just because I thought it was cool.. even if completely worthless. I'm sure many others would too.

[adamstgBit]

i bought my first bitcoin because i like the idea, and thought it was cool.

I spent 25$

i lol'd

and then i was like  

and then  

and then it crashed and i bought more!  

[EvilPanda]

Sometimes you buy a key chain, or a sticker, or some other useless thing for fun. I bought a USB miner with no hope for ROI. So many things just waiting for you to try out and life is too short 

[Soros Shorts]

Aren't bitcoins the main currency in deepweb market places? It's probably so they could buy things with more anonymity on deepweb market places.

Silk Road wasn't around yet when BTC was at that price. Besides, what can you buy for $1?

[medicine]

I went to Ebay to look for bitcoinz back in February 2009 and found some guy selling like 6000 BTC for $360, with a reserve or something.  Bid it up to $450 and still reserve not met, so gave up.  Ebay is a big scam anyway

Bitcoins didn't exist in February 2009.

[bryant.coleman]

Bitcoins didn't exist in February 2009.

No. It did. The first coin was mined sometime in January 2009.

[cerleo]

Well,as some of you said sometimes you buy just for the fun ot to see what will happen.I believe this was the case here,as well.

[bryant.coleman]

Well,as some of you said sometimes you buy just for the fun ot to see what will happen.I believe this was the case here,as well.

But then the Ebay seller was asking more than $450 for 6,000 coins. At that time, the going rate was less than $5 for the same.

[drgyoza]

Why did someone buy bitcoins for that much?  What did they do with it?  Thought it was cool?

Maybe someone thinking its better to buy at 1,300$ than at 1,301$

[EnderHf]

Well they had to start somewhere and I remember when ltc was like 50 cents per coin now look at it is like 30 dollars a pop.

[taltamir]

When $1 was exchanged for 1,300 bitcoins, Why was this done at the time?

Did you mean to say when someone bought 1 bitcoin with 1300$?

[Ruzka]

Definitely wish I would of bought 1300 bitcoins for a dollar lol.

[taltamir]

Definitely wish I would of bought 1300 bitcoins for a dollar lol.

yea. one dollar becomes over a million. nice

[jongameson]

Well,as some of you said sometimes you buy just for the fun ot to see what will happen.I believe this was the case here,as well.

But then the Ebay seller was asking more than $450 for 6,000 coins. At that time, the going rate was less than $5 for the same.

the whole thing just seemed odd to me.  like why was something worth so much on eBay and not worth so much on *how the hell do u freakin buy bitcoins anyway*

[quone17]

How do you know/where is the proof that someone bought 1300 BTC for $1?  Just wondering, it would be cool to try to trace the wallet address.

[DeathAndTaxes]

When $1 was exchanged for 1,300 bitcoins, Why was this done at the time?

Did you mean to say when someone bought 1 bitcoin with 1300$?

No the first recorded trade was ~1,300 BTC = $1.

[ZooKeeper74]

[Frost000]

That's exactly what the thread title made me think of.

Either way, I've purchased useless stuff online for even more than a dollar just for the "what the heck" factor. I wish I was that Norwegian guy who was writing a crypto currency paper and bought $27 worth of BTC back in 2009 or 1010.

[madmadmax]

I don't even understand the question, am I the only one ?

How was the first exchange rate established?

Because people thought it was worth $1 so they were willing to pay $1 for it.

[internetguru]

Wow, thanks everyone this really explains it so much!

So I can see - people might as well try it out since they believe in the concept or thought it was cool

I guess the answer is obvious after I asked it - but at the time I didn't know

you guys are great!

[CrackedLogic]

ahh, those days when bitcoin's price was so low...

[Lauda]

Why not? $1 is really nothing, who wouldn't experiment for such a low amount?

[Peter Lambert]

I don't even understand the question, am I the only one ?

How was the first exchange rate established?

Because people thought it was worth $1 so they were willing to pay $1 for it.

It is simple if you think about it a minute. Imagine you look into bitcoins and decide there might be some future for this thing, it is interesting and maybe it will be useful for something someday. So now you want to get some. There are two ways to get them, mine them or pay somebody who has already mined them. Then ask yourself how much money it would cost to mine it - the electricity, the time spent setting up the program, the wear and tear on your computer, and the time waiting for a block to be found. At the time, the difficulty was really low so it would not take a long time to do, but it is still not 0. So maybe you decide that for a dollar's worth of work and computer wear and electricity you could hash out 20 blocks, at 50 btc per block that would be 1000 btc. Some dude you met on the internet has already mined some bitcoins, they are just sitting on his computer doing nothing, so he gladly will trade 1000 bitcoins for your dollar. Bam, now you have an exchange rate.

[yayayo]

Why not? $1 is really nothing, who wouldn't experiment for such a low amount?

It always starts with mere experimenting...


ya.ya.yo!

[Musent]

Who wouldn't buy something for $1? Not really understanding the original question.

[Peter Lambert]

Who wouldn't buy something for $1? Not really understanding the original question.

Depends on what the something is.

[grifferz]

Obviously if everyone held, always, there would be no economy. Regardless of the currency.

It may seem crazy now to read of 15kBTC pizzas and such like, but this has to happen to grow the economy to what it is today. It can't exist solely on speculation.

[ashapasa]

was a lucky man