dailyreckoning.com.au / By Callum Newman / November 30th, 2013
What was the best investment of the last five years? You could have spent hours analysing industries, credit, supply and demand, capital flows, P/E ratios and dividend yields, or you could have saved yourself the trouble and bought Bitcoin. As Bill Bonner noted this week, if you had put $10,000 in it a few years ago, your stake would be worth over $75 million. Bill crunched his numbers when Bitcoin was US$754. It’s now over US$1,000.
Your editor tried to buy some Bitcoins about six months ago. We got as far as a setting up a digital ‘wallet’. Then it was necessary to register with an exchange. The easiest option seemed to be Mt Gox, the one based in Japan. From memory Mt Gox accepted Aussie dollars, others didn’t. They told us to send in a copy of some ID. We tried our driver’s license. They said it wasn’t enough. Bah! We thought, what’s the point of this hassle? We forgot about it, and can’t even remember what the Bitcoin price was then. We don’t want to think about it now. Who couldn’t help but feel a twinge of regret not to be part of the ride so far?
But we take comfort in the fact we are not in the position of frantic IT worker James Howells over in the UK. Sipping our morning brew yesterday we read how he obtained 7500 Bitcoins in 2009 , left them on an old hard drive and forgot about it. He threw the hard drive in the bin. Unfortunately the Bitcoins on that hard drive are currently worth 7.5 million US dollars. His only hope is finding the hard drive amongst a massive landfill site. We don’t like his chances.