A FORMER trader spoke about how their life was destroyed after using all their savings to buy Bitcoin which plummeted to just $350 a coin.
Posting to Reddit seven years ago, the investor revealed how they were forced to sell their Bitcoin which today would be worth $4.25million (£3.2million).
1
“Bitcoin destroyed my life,” the devastated investor began their post.
“I went all-in at around $1000 with pretty much my whole life savings.”
According to the then 64-year-old, they bought Bitcoin when it was at $1,000 as they were told it would reach the $10,000 mark.
The investor used all of their life savings on Bitcoin, buying $85,000 in coins.
“This is what I saved for nearly 30 years through hard work and was to go to my retirement,” they wrote.
But at the time, instead of skyrocketing in price, Bitcoin dropped down to $350 a coin.
Most read in THE SUN
Giving up all hope on the cryptocurrency, the trader was forced to sell their investment at the low price or they would have lost their house.
But if that trader had kept their money in Bitcoin, it would have been worth a whopping $4.25million.
As of today, one Bitcoin is worth $49,330.
Bitcoin became the world’s first entirely virtual currency when it was introduced in January 2009.
The cryptocurrency was introduced after the Great Financial Crisis of 2008.
It was made in response to the world’s reliance on banks for all financial transactions.
It was created by an online account that went by the name Satoshi Nakamoto.
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
It comes after a trader shared how he became a millionaire for only five minutes after he lost everything when a cryptocurrency coin crashed.
The anonymous Reddit user claimed he made $1.3million after investing in SQUID, the digital currency inspired by the Netflix series Squid Game.
The cryptocurrency surged to a top price of $2,681 before plummeting to $0.01 – a 99.99% fall over the last month.
Tech website Gizmodo had previously warned that the coin was likely to be a scam, commonly known as “rug pull” that happens when the creators of the new crypto quickly cash out their coins for real money.
The Redditor said that he was “intrigued” and wanted to invest in the Squid Game for “research.”
Meanwhile, a Shiba Inu investor reportedly turned a $17 stake into a whopping $15million in just one year.
The shrewd trader bought up just over 200billion of the “joke” meme coins last October when they were worth next to zero.
In May – when it was accepted on some exchange platforms – a massive spike in value saw his investment shoot up to around $6million.
He held his nerve despite a sharp dip in the price of Shiba Inu over the summer.
A second spike in October this year swelled his digital wallet to around $15million by the end of the month.
