Friday, December 13, 2013

Who Is Buying Bitcoin?

Below is an anecdotal report, posted on November13, from a kid who sounds like he doesn't have much money or investment experience but is a buyer of bitcoins. He fits the profile of the type of clueless investor that gets caught up in pump and dump schemes:
I'm a freshman at university studying computer science. I bought my first bitcoin a little over 3 months ago and just I have just recently started selling on It's really not a bad gig. I put up an ad for bitcoins at 10% above bitstamp rates and whenever a buyer contacts me, I buy the BTC instantly through coinbase and transfer it to my localbitcoins wallet, meet the buyer craigslist style, make the exchange, and go about on my merry way. The whole process is pretty seemless. I make a little cash which I invest back into bitcoin, and I get a workout walking from campus to meet buyers.
I've made less than 10 transactions, but, normally, each buyer fits a typical profile: In his (all of my buyers have been male) teens to twenties and -likely to the chagrin of many /r/bitcoin readers- wants to buy something from the Silk Road or from another darknet site.


  1. Just reaching for anything now Robert? A enterprising teenager learns how to trade (Oh the horror!), must mean Bitcoin will fail. Shame, shame, shame Robert.

  2. Where's the "dump" part of the pump and dump?

    All I see is volatility with trending increases over time.

  3. Which buyer? The one engaging in a 10%+ arbitrage profit or the one buying it for consumption?

  4. I feel bad for this kid. Maybe Honey Badger will take him under his wing when he becomes a trillionaire from shitcoins. After all, shitcoins is the "money" of the future. Hahahahahahahahahahahaha