Losing over $1,000,000 in Cryptocurrency

losingbitcoin

In late Dec of 2017 at a steakhouse he stuck his phone in our faces as soon as he was seated. “Look at this!” He could barely contain himself.

I don’t remember the exact number because all that mattered was the “$9” preceding the other 5 digits. The fat bastard was showing us his cryptocurrency wallet. I don’t like it when other people succeed greatly so my first instinct was to deny the credibility of the situation.

A few months prior he put in $20,000 into an initial coin offering and somehow the value skyrocketed almost 50-fold. This was at the time when bitcoin prices were parabolic. “You going to cash out?” I asked.

“Not until it hits $10,000,000,” he replies.

I advised that he should cash out at least $100,000 but he wasn’t interested. Hey, what do I know? If it was me I wouldn’t have even put any money into this, and if I did I surely wouldn’t have held this long. You have to be a certain type of crazy to get rich quick.

Not even a month later I hear he’s up to $2,000,000 with this “coin” which doesn’t even do anything. What do you own? A piece of code? Being at least $8,000,000 from his intended exit target he still doesn’t cash out anything. Again, what do I know? I definitely would have cashed out in late December and wouldn’t be up $2,000,000. Who am I to stop someone’s dream of yachts and butlers.

Shortly after being up $2,000,000 the value of all cryptocurrencies plummeted 75% or more. I’ve never asked but my napkin math tells me his digital wallet is now displaying a value somewhere around $250,000. A mere glimmer of what it used to be but more than enough to have someone and their hamster professionally killed.

There’s a lesson here somewhere.

  1. Don’t buy into foolish investments
  2. Cash out at least a little bit on the way up
  3. You can’t make 50 times your money if you sell at 25 times
  4. You can’t make 100 times your money if you sell at 50 times
  5. Sometimes you have to take people’s advice
  6. Sometimes you shouldn’t listen to anyone

Good luck.

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s