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I wish I could say that I got into bitcoin when it was only a few cents per bitcoin. I can say I got in when it was a few bucks per bitcoin. But, I'd have to add that I got scammed in that deal, sort of.

I got wind of bitcoin some time in 2011, likely when one BTC traded for around a dollar, maybe a few, depending on the month. I wanted to get into the fun, but couldn't wrap my brain around it. I forgot about it. On August 24 of 2011 I heard an NPR piece on bitcoin and was immediately reminded and intrigued. A few days later, I downloaded the software. I couldn't figure out what it was all about. The client was bare and not intuitive, at least not to me. I didn't know about mining, couldn't figure out the whole shebang, but still wanted in. So, I reverted to what I knew…I sought to buy some bitcoin on eBay via PayPal.

On September 1, 2011, I bought and received 0.01 bitcoins. That's what I know now as 10 mbits or 10,000 bits (ubits), or one million satoshi. I had no clue then. In the purchase, I got myself scammed. The going price at the time was $8.21 per bitcoin. That meant $0.0821 was market price for my 0.01 bitcoin. I paid $0.90. That 90 cents for what should have been 9 cents. Even selling at 9 cents would have earned the seller a profit. I knew the seller was upping things from the exchange rate — going from .0821 up to .09 is a 9.6% markup. But, I figured that's fair enough. He or she can make a profit if I'm willing to pay for it. And I was. I wanted into bitcoin and this would get me in. After all it was only 90 cents!

The seller was playing the decimal game with noobs like me. I should have paid 9 cents for .01 bitcoin, instead I paid 90 cents. Okay, lesson learned. This is one reason I set up http://www.satoshi.24ex.com — so that wrangling in bitcoin decimals and values is easier. Still, despite being fooled in the dealing, I was into bitcoin.

The last laugh though is still unfolding. That 0.01 bitcoin is now worth about $2.71 according to http://www.bitcoinaverage.com Looking back, I can tell myself that I actually scammed that seller. What I bought at a hyper-inflated price of $0.90 is now worth $2.71…an increase of 200%. This is the last laugh, but I'm not sure who the last laugh is on. It should be on the eBay fellow that scammed me because, as of now, he's kicking himself for selling bitcoin at prices that are today such crazy discounts. Or, maybe the laugh is on me for not letting myself get scammed a whole lot more!

The lesson? Bitcoin, in the long run, is paying off.