Famed writer Hunter S Thompson was renowned for his “gonzo” journalism, where he didn’t just report on an issue, but immersed himself in the story.
I never intended to get into this style of cryptocurrency reporting, but by accident I am the perfect case study of the ups and downs of this wild financial frontier.
Like millions of others, I had spent years watching the growth of crypto without ever really dipping my toes in the water.
I was intrigued by the buzz and even more interested in some of the profits that were being made, but also quite suspicious that this seemed to be an industry for tech savvy and sleazy shonks.
But last year, around a few beers with friends, I was convinced. They were all giving very neat feedback and in the end I thought “if these regular guys can master the world of cryptocurrency, why can’t I?”
The old school investor in me made sure I followed the rule of thumb to only invest what you are willing to lose.
I deposited a fairly insignificant amount of money into an account, asked my friends which coins I should invest in, and sure enough, overnight after day my wallet grew.
And until. And up!
Within months I had more than doubled my money and all of a sudden I had been so careful with my initial spending.
Specifically, my wife and I were struggling to buy our first marital home at the time, and I was spoiling the fact that if I had put our deposit in crypto, a few months later, we would have been ready for a lot more home. pleasant.
But what can you do?
I reconciled my situation, and thought that I would just let my crypto account sit there and continue to do its thing, and if it continued at the current rate of growth, maybe a few years later it could be a deposit for another property.
Truth be told, after a few months, I forgot I even had a cryptocurrency wallet. That was until I got a message from a friend of mine that first convinced me to invest.
He was like “Holy shit…did you see what happened to crypto?” followed by the brain exploding emoji.
Now, given that I had only ever really known good times for crypto, my first thought was a mixture of greed and joy.
Maybe while I hadn’t been paying attention, the price of some of the obscure pieces I’d tried had skyrocketed.
I opened the app on my phone and viewed my portfolio chart.
Rather than soaring into the sky, it fell through the ground.
I lost 85% in one day.
The room that my friends had talked about the most, the one in which I had invested the most, was called Luna. It is now worthless.
It was so obscene that I just laughed. What else could I do?
Rather than being wracked with disappointment, I instead found myself thankful that I had been so careful when embarking on this crypto roller coaster.
Unfortunately, several of my friends had been much more optimistic.
They would often message me saying “buy the dips” and would drop thousands of dollars more each time Luna’s price dropped.
On paper, they were killing him.
They had made several tens of thousands of dollars.
But the truth is that their expenses were still miniscule compared to many other ordinary investors in Australia who thought they had discovered a get-rich scheme that for once actually worked.
It was, until it wasn’t anymore.
So while I’m glad I dodged a bullet, I know a lot of others didn’t.
And that’s the tragedy of this crypto crash – the number of laggards, seduced by the hype and Hollywood endorsements, who piled their life savings and retirement pensions at the top of the market, only to now find themselves in a giant trough at both financially and emotionally.
I’m immensely sorry for them, but I suspect there’s quite a bit of schadenfreude in other parts of the community.
This is perhaps a good reminder for everyone of that other financial rule of thumb: if it sounds too good to be true, it probably is.
#Tom #Steinfort #dodged #bullet #investing #cryptocurrency