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

[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