• Same story, different day...........year ie more of the same fiat floods the world
  • There are no markets
  • "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

I’m ‘Financially Ruined’: Cryptocurrency Investors are Crushed by Losses of 70% or More

Scorpio

Скорпион
Founding Member
Board Elder
Site Mgr
Sr Site Supporter
Joined
Mar 25, 2010
Messages
25,259
Likes
29,141
#1
I’m ‘Financially Ruined’: Cryptocurrency Investors are Crushed by Losses of 70% or More





Bitcoin price over last 12 months. By Nathaniel Popper and Su-Hyun Lee

Pete Roberts of Nottingham, England, was one of the many risk-takers who threw their savings into cryptocurrencies when prices were going through the roof last winter.

Now, eight months later, the $23,000 he invested in several digital tokens is worth about $4,000, and he is clearheaded about what happened.

"I got too caught up in the fear of missing out and trying to make a quick buck," he said this week. "The losses have pretty much left me financially ruined."


Mr. Roberts, 28, has a lot of company. After the latest round of big price drops, many cryptocurrencies have given back all of the enormous gains they experienced last winter. The value of all outstanding digital tokens has fallen by about $600 billion, or 75 percent, since the peak in January, according to data from the website coinmarketcap.com.

The virtual currency markets have been through booms and busts before — and recovered to boom again. But this bust could have a more lasting impact on the technology's adoption because of the sheer number of ordinary people who invested in digital tokens over the last year, and who are likely to associate cryptocurrencies with financial ruin for a very long time...

y many metrics, more people put money into virtual currencies last fall and winter than in all of the preceding nine or so years. Coinbase, the largest cryptocurrency brokerage in the United States, doubled its number of customers between October 2017 and March 2018. The start-up Square began allowing the users of its mobile app, Square Cash, to buy Bitcoin last November.

Almost all of the new customers on Coinbase and Square would be in the red if they bought cryptocurrencies at almost any point over the last nine months and held on to them...

Kim Hyon-jeong, a 45-year-old teacher and mother of one who lives on the outskirts of Seoul, said she put about 100 million won, or $90,000, into cryptocurrencies last fall. She drew on savings, an insurance policy and a $25,000 loan. Her investments are now down about 90 percent.

"I thought that cryptocurrencies would be the one and only breakthrough for ordinary hard-working people like us," she said. "I thought my family and I could escape hardship and live more comfortably but it turned out to be the other way around."

In the United States, Charles Herman, a 29-year-old small business owner in Charleston, S.C., became obsessed with virtual currencies last September. He said he now felt like he had wasted 10 months of his life trying to play the markets.

While he is essentially back to the $4,000 he put in, he has soured on the revolutionary promises that virtual currency fanatics made for the technology last year and has resumed investing his money in real estate.

"I guess I thought we were 'sticking it to the man' when I got on board," Mr. Herman said. "But I think 'the man' had already caught on, and had an exit strategy."

Read the full article here.

-RW

http://www.economicpolicyjournal.com/2018/08/im-financially-ruined-cryptocurrency.html
 

birddog

Gold Member
Gold Chaser
Site Supporter
Joined
Feb 28, 2011
Messages
2,673
Likes
3,394
#2
What morons. Folks will never learn that playing markets is hard.

The money I put in cryptos is not enough to cause palpitations if it goes to zero. More like a future savings account for my kids.

But I do kick myself for not buying bitcoin for $10 when a friend got in.......
 

andial

((( member )))
Midas Member
Site Supporter ++
Joined
Apr 1, 2010
Messages
10,752
Likes
11,242
#3
If these guys had more political power they could order the fed to “expand their balance sheet” by buying these currencies at their high water mark values like they did for the mortgage market scummers back in ‘08.
 

Someone_else

Gold Member
Gold Chaser
Site Supporter ++
Joined
Mar 31, 2010
Messages
2,200
Likes
2,677
#4
But I do kick myself for not buying bitcoin for $10 when a friend got in.......
I hear you. In April 2012 (just checked), I was buying about $70 from a guy on ebay, and he proposed that I buy with bitcoin. I liked the novelty and the idea of bitcoin, but I didn't want to download the several gigabytes of blockchain. I probably would have bought a hundred bucks worth, just to have some spare to play around with. Damn.
 

Someone_else

Gold Member
Gold Chaser
Site Supporter ++
Joined
Mar 31, 2010
Messages
2,200
Likes
2,677
#6
Also, bitcoin was designed to be a payment method. I like the general idea of a crypto currency, even if many implementations are not useful because of the transaction costs or latency to proof of payment. I feel that bitcoin has failed on this, and I believe that intermediaries (exchanges) that hope to overcome these problems introduce the new problem of trusting a third party to manage your currency. To wit (and to spell it out): Magic The Gathering Online eXchange. (No, dimwits, there is no "mountain".)
 

Alton

Gold Member
Gold Chaser
Joined
Apr 1, 2010
Messages
3,465
Likes
6,025
Location
Michiana
#7
Cryptos are still new. Marketts for cryptos are still new. Reality here = VOLATILITY to a very high degree. Very much like playing with fire. Fools who go all in get burned bad.
 

ZZZZZ

Gold Member
Gold Chaser
Joined
Dec 23, 2017
Messages
1,554
Likes
3,438
Location
Northern Arizona
#8
Bitcoin first came to my attention when it was two friggin' bucks! I read a white paper, and it made little sense. But who knew....

I did start buying a few hundred bucks worth here and there when it was in the $700 range. Unloaded when it hit a 10-bagger. Should have waited, but who knew...

I started buying a few hundred worth here and there again last month. We shall see...
.
.
 

Professur

Midas Member
Midas Member
Sr Site Supporter
Joined
Mar 31, 2010
Messages
5,576
Likes
6,044
#11
Spend money to buy .. nothing ... and they're surprised they got nothing in return. This is why I'm a monarchist.
 

ZZZZZ

Gold Member
Gold Chaser
Joined
Dec 23, 2017
Messages
1,554
Likes
3,438
Location
Northern Arizona
#12
Spend money to buy .. nothing ... and they're surprised they got nothing in return. This is why I'm a monarchist.
Speculating in Bitcoin is no different than speculating in any other vehicle. As I showed above, the chart of Bitcoin is virtually identical to that of silver, though over a much longer time frame.

When speculating, you pays your moneys and you takes your chances.
.
.
 

the_shootist

Molon Labe! Deplorable Dreg!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
24,073
Likes
27,479
#13
Speculating in Bitcoin is no different than speculating in any other vehicle. As I showed above, the chart of Bitcoin is virtually identical to that of silver, though over a much longer time frame.

When speculating, you pays your moneys and you takes your chances.
.
.
I couldn't disagree more. BTC is a vapor vehicle, backed by literally nothing. You can't get much more 'nothing' than that
 

ZZZZZ

Gold Member
Gold Chaser
Joined
Dec 23, 2017
Messages
1,554
Likes
3,438
Location
Northern Arizona
#14
I couldn't disagree more. BTC is a vapor vehicle, backed by literally nothing. You can't get much more 'nothing' than that
Doesn't matter if it's electronic bits or tulips or the phony price of paper silver, It's all the same process. Buy low, sell high, pass the hot potato off to the next sucker before you get burned.
.
.
 

the_shootist

Molon Labe! Deplorable Dreg!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
24,073
Likes
27,479
#15
Doesn't matter if it's electronic bits or tulips or the phony price of paper silver, It's all the same process. Buy low, sell high, pass the hot potato off to the next sucker before you get burned.
.
.
I agree given all those examples you mentioned. Would would never trade FRNs for any of those things because I'm not an investor for profit.My personal priority is the preservation of wealth and I realize that's not for everyone. I certainly do understand and agree with your point as a speculator.
 

smooth

Gold Member
Gold Chaser
Site Supporter
Joined
Mar 31, 2010
Messages
2,785
Likes
4,847
#16
I couldn't disagree more. BTC is a vapor vehicle, backed by literally nothing. You can't get much more 'nothing' than that
I've basically been told the same thing when it comes to silver.. "its just a shiny coin, You cant eat it, fuel your car with it, wear it, or heat your house with it, you cant even buy groceries with it...
 

mayhem

A different perspective
Silver Miner
Site Supporter
Joined
Mar 30, 2010
Messages
3,958
Likes
5,597
Location
One foot over the line.
#17
Bought 500 coins when it was in the single digit area. At the time I was buying things off the dark web and BC was the only exchange currency. I still have about 80 coins but haven't done a transaction in BC but to hit the tip jar at a few of my popular sites.
Got burned in the 80's with the penny's and learned a valuable lesson about scams like BC. I didn't have the time to day trade so I just didn't play.
Now I'm 76 and have a host of terminal health issues. Had a lot of 90% that I bought back in the late 70's and unloaded 50% of it at $34.00, held the rest till spring of last year when I sold off the rest for paid for house repairs. Friends who have now lost their tails in BC won't even talk about it other than to say the next venture will be different.
Let's face it, most people are greedy and always look for a fast buck in something. Look at how many people play the lottery every week/day all hoping to get rich quick while dying poor.
PM's are OK if you have enough years left to make it out of the coming disaster, but at my age I won't be around for that so I now only hold a very small amount.
That is my perspective, not any advice for others. Follow the late Ponce's advice "everyone will need TP" if there is a female in your circle.

Just my nickle's worth of advice.
Best Regards,
mayhem
 

mayhem

A different perspective
Silver Miner
Site Supporter
Joined
Mar 30, 2010
Messages
3,958
Likes
5,597
Location
One foot over the line.
#18
My personal priority is the preservation of wealth and I realize that's not for everyone.
A sound perspective TS especially if you have someone close to you who has the same beliefs so you can pass it on.
 

the_shootist

Molon Labe! Deplorable Dreg!
Midas Member
Sr Site Supporter
Joined
May 31, 2015
Messages
24,073
Likes
27,479
#20
Bought 500 coins when it was in the single digit area. At the time I was buying things off the dark web and BC was the only exchange currency. I still have about 80 coins but haven't done a transaction in BC but to hit the tip jar at a few of my popular sites.
Got burned in the 80's with the penny's and learned a valuable lesson about scams like BC. I didn't have the time to day trade so I just didn't play.
Now I'm 76 and have a host of terminal health issues. Had a lot of 90% that I bought back in the late 70's and unloaded 50% of it at $34.00, held the rest till spring of last year when I sold off the rest for paid for house repairs. Friends who have now lost their tails in BC won't even talk about it other than to say the next venture will be different.
Let's face it, most people are greedy and always look for a fast buck in something. Look at how many people play the lottery every week/day all hoping to get rich quick while dying poor.
PM's are OK if you have enough years left to make it out of the coming disaster, but at my age I won't be around for that so I now only hold a very small amount.
That is my perspective, not any advice for others. Follow the late Ponce's advice "everyone will need TP" if there is a female in your circle.

Just my nickle's worth of advice.
Best Regards,
mayhem
Well said. You sir have had a sound plan. Those of us who learn from our mistakes tend to come out ahead.
 

GOLDZILLA

Harvurd Koleej Jeenyus
Midas Member
Joined
Apr 1, 2010
Messages
7,369
Likes
6,912
#21
I dont see bitcoin or silver moving upward again until a democrat ascends to the throne and all entities are forced to once again make their wealth go away for awhile.
 

Fatrat

Silver Miner
Joined
Apr 15, 2018
Messages
807
Likes
520
#22
Never put all your eggs in one basket, a really old investing rule...
 

Joe King

Gold Member
Gold Chaser
Site Supporter
Joined
Mar 31, 2010
Messages
6,744
Likes
6,998
Location
Instant Gratification Land
#23
Let's review, shall we?


For reference we'll use today's date.

Aug. 27th....
2018 $6896.44
2017 $4382.13
2016 $4378.96
2015 $227.37
2014 $513.43
2013 $512.22
2012 $10.95
2011 $8.59
2010 $0.07

Are those numbers really so awful?

Let's see where we are next August.
 

jrog100

New Member
Joined
Apr 6, 2010
Messages
73
Likes
45
#24
I’m ‘Financially Ruined’: Cryptocurrency Investors are Crushed by Losses of 70% or More





Bitcoin price over last 12 months. By Nathaniel Popper and Su-Hyun Lee

Pete Roberts of Nottingham, England, was one of the many risk-takers who threw their savings into cryptocurrencies when prices were going through the roof last winter.

Now, eight months later, the $23,000 he invested in several digital tokens is worth about $4,000, and he is clearheaded about what happened.

"I got too caught up in the fear of missing out and trying to make a quick buck," he said this week. "The losses have pretty much left me financially ruined."


Mr. Roberts, 28, has a lot of company. After the latest round of big price drops, many cryptocurrencies have given back all of the enormous gains they experienced last winter. The value of all outstanding digital tokens has fallen by about $600 billion, or 75 percent, since the peak in January, according to data from the website coinmarketcap.com.

The virtual currency markets have been through booms and busts before — and recovered to boom again. But this bust could have a more lasting impact on the technology's adoption because of the sheer number of ordinary people who invested in digital tokens over the last year, and who are likely to associate cryptocurrencies with financial ruin for a very long time...

y many metrics, more people put money into virtual currencies last fall and winter than in all of the preceding nine or so years. Coinbase, the largest cryptocurrency brokerage in the United States, doubled its number of customers between October 2017 and March 2018. The start-up Square began allowing the users of its mobile app, Square Cash, to buy Bitcoin last November.

Almost all of the new customers on Coinbase and Square would be in the red if they bought cryptocurrencies at almost any point over the last nine months and held on to them...

Kim Hyon-jeong, a 45-year-old teacher and mother of one who lives on the outskirts of Seoul, said she put about 100 million won, or $90,000, into cryptocurrencies last fall. She drew on savings, an insurance policy and a $25,000 loan. Her investments are now down about 90 percent.

"I thought that cryptocurrencies would be the one and only breakthrough for ordinary hard-working people like us," she said. "I thought my family and I could escape hardship and live more comfortably but it turned out to be the other way around."

In the United States, Charles Herman, a 29-year-old small business owner in Charleston, S.C., became obsessed with virtual currencies last September. He said he now felt like he had wasted 10 months of his life trying to play the markets.

While he is essentially back to the $4,000 he put in, he has soured on the revolutionary promises that virtual currency fanatics made for the technology last year and has resumed investing his money in real estate.

"I guess I thought we were 'sticking it to the man' when I got on board," Mr. Herman said. "But I think 'the man' had already caught on, and had an exit strategy."

Read the full article here.

-RW

http://www.economicpolicyjournal.com/2018/08/im-financially-ruined-cryptocurrency.html
I'm wondering if this is fake news. It's hard to believe that anyone would be that stupid to invest in bitcoin.
 

Someone_else

Gold Member
Gold Chaser
Site Supporter ++
Joined
Mar 31, 2010
Messages
2,200
Likes
2,677
#25
It's hard to believe that anyone would be that stupid to invest in bitcoin.
Oh, I don't know about that... I bought 1000 shares of Worldcom and saw them vanish into thin air. Argh! Lost over two hundred bucks.
 

RealJack

Gold Member
Gold Chaser
Joined
Apr 4, 2010
Messages
1,487
Likes
1,283
#26
Mayhem had bigger balls than I did.
Noticed BC when it was around .07 and then found my way onto the dark web and Silk Road. Thought about buying some weed seeds...
Hesitated because it felt like a honeypot of some sort, but I was very curious and tried to buy some BC's on a website.
I think it was Mt. Gox. By that time the price had already jumped to something like .33. I actually tried to buy, but the pre-transaction requirement loaded so slow off the site, I figured since I didn't know what the hell I was doing I gave up.

It would have been a fun ride, but I didn't want a Fed car pulling into my driveway over a handful of seeds in the mailbox.