This 20-year-old high school dropout bought $1,000 worth of bitcoin at the age of 12 - now he's worth $4.5 million
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Rebecca Aydin
Aug 27, 2019, 21:05 IST
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Erik Finman bought $1,000 worth of bitcoin at the age of 12 in 2011, when each bitcoin was $10 to $12.
Today, he says he holds 446 bitcoins - that means he's sitting on around $4.5 million in bitcoin, according to Tuesday's price.
The Idaho tween who bet big on bitcoin is now a 20-year-old Silicon Valley millionaire with two new cryptocurrency ventures launched in 2019, including a competitor to Facebook's forthcoming Libra cryptocurrency.
Erik Finman says he's the youngest person to become a bitcoin millionaire.
In the past eight years, he's grown his bitcoin holdings from about 100 (worth $1,000 in 2011) to nearly 450 (worth about $4.5 million in 2019). And he had an early start - he made his first investment at age 12, and became a millionaire at age 18. Now at age 20, he's invested in a competitor cryptocurrency that he says will "kill" Facebook's forthcoming Libra cryptocurrency.
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Read on for a timeline of the life of Erik Finman, from Idaho tween to Silicon Valley crypto-millionaire.
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In 2011 at the age of 12, Idaho tween Erik Finman bought $1,000 worth of Bitcoin.
Finman grew up in Post Falls, a small town outside of Coeur d'Alene, Idaho.
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His parents met as Ph.D. students at Stanford University. Erik is the youngest of their three sons.
Finman first learned about bitcoin from a "hippie" at a protest, and he thought it sounded promising.
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So, Finman used $1,000 from his grandmother intended for his scholarship fund to buy around 100 bitcoins, when each coin was worth $10-$12.
"I just spent every day trading to get more after that," Finman told Business Insider. "For three years, I just was basically doing bitcoin trading and school, and that was about it."
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At age 15, Finman sold $100,000 worth of bitcoin, founded an education startup, and dropped out of high school.
Part of the reason Finman sold those bitcoins was to enter a raffle costing $8,500 to meet his idol, Reddit cofounder Alexis Ohanian — Finman won and met Ohanian.
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Finman was inspired by his own negative experiences with school to create his education startup, Botangle.
Finman hated school — he says one teacher told him to drop out and get a job at McDonald's.
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And so Finman created Botangle — a company that paired students with teachers online — and dropped out of school himself to work on it.
Finman upped the ante in a bet with his parents: If he became a millionaire by the age of 18, he wouldn't have to go to college.
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Finman got an internship at a startup selling Sprayable Energy — so he moved to Silicon Valley.
Finman described the Sprayable Energy product as "Red Bull for your skin" to New York Magazine.
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Around two years after starting Botangle, Finman sold his company for 300 bitcoins at age 17.
In June 2017 at the age of 18, Finman became a millionaire when bitcoin's value crossed $2,700 — meaning he won his bet with his parents.
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Finman's first splurge was an Audi R8, which he keeps in a garage in LA now.
This is about when Finman says he began cultivating an outrageous persona on Instagram — "a semi-satire...pantomime of myself" — to bring attention to his projects.
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"I did this crazy Instagram stuff to look like an eccentric young bitcoin millionaire, you know, kind of fit the stereotype," Finman told Business Insider.
In May 2018, Finman led a team of engineers in creating a real life Dr. Octopus Suit.
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In December 2018, Finman led Project da Vinci, for which a group of teenagers launched a satellite into space with a time capsule — Taylor Swift signed a copy of her "1989" album for the capsule.
In May 2019 Finman launched CoinBits, a Bitcoin investment tool.
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Metal Pay launched in August 2019 with Finman as an investor, and he's calling it "the Facebook Libra killer."
Finman currently holds 446 bitcoins — that's about $4.5 million, according to Tuesday's price.
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Finman has apartments in San Francisco and New York City, and he spends significant time in Los Angeles too.
Finman turns 21 in October, and he'll be spending his birthday in Las Vegas.
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As for his next project, Finman says he's preparing to do something in the education space, which he'll announce soon.
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