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Sunday, September 19, 2021

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He lost his life savings by betting on Bitcoin and gave his recommendations to avoid it

“I completely screwed up, my life savings are gone forever, I have learned a devastating hard lesson,” said the distraught man. The subject and his partner saved about 80 thousand dollars for 10 years and, as the man relates, they wanted to leave “a mediocre life” by buying 1.7 Bitcoin when the currency had a value of US $ 50,000 each.

However, he made a risky move: he bet on his future value. In cryptocurrencies (as well as in stock exchanges) you can bet that the value of a currency (or share) can fall or rise in the following days. In the first case, when betting the fall, it is called “short”, but if you bet on it going up, it is called “long” or future.

If the graphs are analyzed, these bets can respond to a pattern. However, there is a mechanism called “futures leverage” in which only a percentage of what is wagered is deposited as collateral. If you lose, all your money will go away.

Wanting to be a “hero” to his wife, he made the decision (despite not knowing what he was doing) to bet on leveraged future trades, allowing him to convert 1.7 bitcoin into 2.1. “I have put all of our 2.1 bitcoins into a leveraged future betting on the value of bitcoin reaching $ 100,000, and I was already envisioning 21 bitcoins. I saw this as a gateway out of our mediocre life, “he said.

However, the opposite of what he predicted happened. The value of Bitcoin hit 50 thousand dollars, but without being able to overcome it, falling to an average between US $ 45,000 and US $ 47,000, losing the bet.

The worst thing is that he still hasn’t told his girlfriend. “I still haven’t said anything to my partner. She doesn’t know and this is killing me inside. I don’t know what to say to him, I’m just heartbroken. I can barely look at myself in the mirror, ”he said.

Despite the losses, the subject does not distrust Bitcoin and recommended to his readers not to operate future businesses, but only to keep the currencies to continue to revalue, regardless of the time it takes, an action called “hold”. He recalled that Bitcoin had a maximum peak of US $ 65,000 each unit and this can be overcome only with time and patience.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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