I wrote the following in an email to the author Dmitri Orlov in June 2011, whom I have had a few exchanges with the past couple years, only by email, and mostly about sailboats. I wanted to reciprocate for all of his good and free advice, so I recommended that he buy Bitcoins as a quick way to make a sizable return. A $10K investment in bitcoin 1 year ago would be worth $750grand today, April 10th, 2013 [UPDATE: Upper bound return on $10k was $3million]. My point in creating this blog was to inform investment pessimists that THEY can make these kinds of returns regularly if they utilize convexity (per Taleb). I passed the time for the trade’s duration, which was about a year, by blogging about philosophy and other stuff..
Good Evening Dmitry,
I recently stumbled on this newish digital currency while looking into lulzsec, the hacker group that’s been publicly exposing the lack of security in what seems to be all stored databases of users and their personal info.
To get right to it, the thing I’m speaking of is a currency that has caught on in the digital realm called “Bitcoins”. They are decentralized and already used by most world renowned “rejects” of the system. More encouragingly, they are used by the most cooperative and intelligent internet and computer users as a means of online trade, independent of all centrally planned banks and governments. It’s open source, peer to peer, and has all of the stuff you might expect would grow out of this beautiful organism called the internet.
I expect that you had heard of it already, but if not, you can easily benefit from it’s almost certain ten-fold increase in the coming years (by buying bitcoins through any exchange site, not to mention accessing its unmatched network of “super-users” on the internets)…