Mr Derek Rose, recalled his experience of losing $7 million dollar by investing in Crypto Industry. Mr. Derek was a journalist and had invested all his savings into the digital coins. But unfortunately his account was liquidated.
Initially, Mr Derek was hesitating to tell in public how he lost a fortune. He felt that doing so would make him look like an “idiot”. He had been neglectful of his friends’ advice, opinion of Financial firms and invested a lot of money in Bitcoins. He said that his initial steps in the Crypto sector was carefully taken with a lot of attention and background research. And rather than taking the profits and investing it in a house or so, he bought even more number of bitcoins.
His first investment in Bitcoin was made in 2013. At that time, they valued less than $100. He then allowed Coinbase to deduct $25 from his account every week and invest that in buying bitcoins. Mr Derek said, “When I moved from New York to New Zealand later that year, I needed cash. So I stopped those withdrawals and later sold half of my 10 bitcoins for around $500 to pay off some debts. D’oh!”
Mr Derek then said that Bitcoin had topped $2000 by the end of May, 2017 and Ethereum was at $400 mark. That is when he decided to do something as wild as investing all his money from the retirement account in Bitcoins.
Mr Derek was all set to take that risk and he had to withdraw $3500 every day so that Coinbase limit of $25,000 was not reached. The sector fell down and rose back up and Mr Derek didn’t flicker away from his plan.
When Bitcoin was about $8000, he invested half a million dollar in buying bitcoins. By the end of December the “account was worth over $7 million” and he had “borrowed $14 million to buy more cryptocurrencies.”
$7 Million Dollar Liquidation
Mr. Rose stated some of the conversation between his friend and him where his friend suggested, “If you are right that having 1 BTC [one Bitcoin] is impressive in the future then what you have now is more than enough. So you can sell a bit and hold some cash,” and he replied “I want to own a sports team though […] And have a yacht. These things add up quickly”.
“If you are right, then half your bet is enough. If you are wrong, you are broke.”
Mr Rose had to face some huge loss and he does not regret putting in all his savings in cryptocurrencies. He feels that he is doing a lot better than investing in index funds.