SPRING WELCOME BACK EDITION
THE DAILY ILLINI
TUESDAY January 16, 2018
The independent student newspaper at the University of Illinois since 1871
WWW.DAILYILLINI.COM
Vol. 147 Issue 32
Bitcoin frenzy hits student investors
BY HEATHER SCHLITZ NEWS REPORTER
Ayush Kumar, senior in Engineering, previously used Bitcoin to purchase drugs and fake IDs on the dark web. Now he, along with a swarm of other student hopefuls, are Bitcoin investors hoping to ride the wave of popularity that has increased its price by a factor of 15 since the beginning of 2017. Bitcoin, a digital currency without the backing of a central authority or government, was released in 2008 by a creator using the pseudonym Satoshi Nakamoto. Once a popular, anonymous way to buy illicit materials on the dark web, the recent meteoric rise in popularity of Bitcoin and other cryptocurrencies has pushed it closer to the mainstream.
Niraj Pant, junior in Engineering, began mining Bitcoin on his gaming computer as a high schooler in 2013 when it was valued at only $130. Now trading at a price of $13,900 USD, Pant leaves the amount of money he’s made from Bitcoin’s rise to the imagination. Although Bitcoin mining has grown so difficult that only large companies with access to specialized hardware and cheap electricity can turn a profit, the trend of speculation (trading in a high-risk asset that could lose all initial value due to an expectation in a substantial future outcome) may only be beginning. “The soaring price of Bitcoin is like a honeypot that attracts so many investors,”said Xiaoyao Qian,
second-year master’s student in computer science, in an email. “A couple of years ago, bitcoin was still a niche topic that are only discussed on online forums, but now you can hear people talking about it in restaurants on Green Street.” With opportunities to use Bitcoin to pay for goods and services limited, Qian said the volatility in price and upward climb of Bitcoin has largely been propelled by speculation. “Bitcoin has gone through so many cyclical drops and peaks, and I think people in the bitcoin world who have been around for a while are not new to this. There’s kind of this warrior cry that they call ‘HODL,’ and it basically means hold on for
dear life,” Pant said. “Hold on to your assets for as long as possible if you can afford it because these things tend to accrue in value for a long time.” Conversation surrounding Bitcoin is often fraught with worries about a potential collapse with some likening the erratic price and frenzy of speculation to the years preceding the dot-com bubble burst. “A lot of people compare this to public stocks in the ’90s and 2000s with internet companies,” Pant said. “Most of the internet companies lost all their value. There were a few that held their value like Paypal, Google, Ebay and Amazon, but
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most of them died out. I kind of anticipate that happening here as well.” With investors and potential investors facing complex questions over whether Bitcoin is the future of technology or another bubble waiting to burst, Tom Sun, a software engineer at Twitter and a University alum, largely brushes off concerns over a Bitcoin collapse. “My definition of a bubble is when something’s underlying value can
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Basar named interim dean of Engineering BY JESSICA BURSZTYNSKY NEWS EDITOR
Tamer Basar began his role as interim dean for the College of Engineering on Tuesday. Basar, who was appointed to the position Dec. 19, is formerly the director of the Center for Advanced Study and a professor of electrical and computer engineering at the University. “Our College of Engineering is internationally renowned as a leader in innovation, education and scholarly cutting-edge research in engineering, computer science and physics, while being an SEE DEAN | 3A
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KENYON EDMOND THE DAILY ILLINI
The Alpha Delta Phi fraternity house in the midst of demolition on Monday. The unused house is being demolished to make room for new developments. The northern half of the lot was sold to Opus Development, which plans to construct an apartment complex in the empty space. The southern half will be used to build a new fraternity house for the chapter.
House venue geared toward inclusion
New apartment complex to occupy former fraternity lot BY AARON NAVARRO ASSISTANT NEWS EDITOR
A 14-story apartment tower is planned to occupy the lot space of the former Alpha Delta Phi fraternity house. The unoccupied house on 310 E. John St. was demolished by real estate business Opus Development on Jan. 8. The lot will be divided in two separate lots,
with Alpha Delta Phi selling the north half to Opus for $7.52 million. The south half facing John Street will be used for a new three-story fraternity house for the chapter. The rezoning of the lot was approved in November 2016, according to a permit with the City of Champaign. The $31.48 million apartment complex is planned
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to have 11 floors of residential space and three levels of parking, though its final permit is still under review. Rezoning documents show the new apartment complex is intended to be shorter than neighboring 309 E. Green St. and HERE apartments. “There is a community benefit to providing for a ‘stepdown’ in develop-
ment height by granting the zoning change as requested. This will help to soften the transition between the height of surrounding development to the maximum height allowed within the University Neighborhood,” the permit said. There is no timeline yet for Alpha Delta Phi’s new chapter house, though construction is expected to
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start in 2019. The fraternity house had been unoccupied since June 2015. Since then, various local first responders have used the building for training, such as the University of Illinois Police Department’s METRO SWAT team and the Champaign Fire Department.
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