Bitcoin has fallen from $19,798 to $6,914, a 65% decrease in value and this has shown the three types of investors:
The Smart One: bought in early and sold at the top, probably now holding Tether.
The HODLer: no matter what, will sell at a higher price some point in the future.
The Sufferer: bought at the all time high and is watching portfolio melt.
In this article, I wish to discuss the third investor, the Sufferer, and expose the potential danger of investing in cryptocurrencies. I believe the Sufferer is the other side of the crypto-coin. The greater fool theory states that optimistic ‘fools’ buy in anticipation of selling to ‘greater fools’ and that the bubble bursts when there are no greater fools to sell to. These final buyers are the ones that get hit the worst but for some, losing out may mean more than just money.
Suicide is not an easy topic. The feeling of desperation so great that life isn’t worth living any more is possibly the hardest emotion to feel. It’s hard to see past the numbers on a screen, to someone else on the other end, to the thoughts in their head and the people they know. To their child, to their partner, to their parents. It’s very easy to see numbers jumping up on a screen and not realise you are profiting from someone else’s mistakes.
By buying a commodity at a cheap price and selling it for more, you have gained money. However, another person has lost money in the process. While ‘investors’ may celebrate that their investment has increased, someone else (on average) must have seen their portfolio reduced. It is very easy to see bitcoin as ‘free money’ but it has come from someone else.
While it is commonly given advice to ‘invest only what you can lose’, many of the Sufferers have made the decision of investing enough money to make a substantial impact on their real-world life. These stories below may or may not be true but were posted anonymously on online forums and even if untrue, represent the kind of stories that are out there.
“I fell for it, I’m in my p*** poor apartment room breaking down. I actually believed it. I fell for the meme, I bought 1 full bitcoin off of a seller at $19,200, almost my whole savings account drained into a coin that is now literally worth half that, to make matters worse I’m trying to withdraw half the money I have remaining and at least get $8000 back but the system is going through a bunch of errors and telling me they have to review my withdrawal application, it looks like by the time I’m able to actually withdraw my whole $19,000 of savings will be nothing. I’m killing myself tonight, I even saw a thread yesterday about suicide and realized I’m not the only one.”
“my dad gave me $10,000 to put in right before the bull trap. the last thing he said to me was “I trust you”
I’m now down over 70% from holding and then desperately trying to catch falling knives
what the f*** do I do
my dad is nice and is starting to suffer from medical issues I just wanted to give him a decent amount so he could stop working and live comfortably on social security for the next 20 years
nothing in life makes me happy and I will probably kill myself once he’s gone”
For now, buying cryptocurrencies is like betting, you choose to put money in with the risk of it going either up or down. If you win, you take money from someone else, if you lose, they take your money. Betting can be safe; it can be addictive. The point is, only put in what you can afford to lose. Sometimes its not about maximising rewards but minimising risk.
If you have put in more than you can afford and your portfolio has collapsed in value, find some way of holding for two years. Many people have pointed out the rises and dips of Bitcoin, often looking at log charts to see a clearer long term picture. This may continue, you may be able to get back what you have lost so far. Be positive.
Article written by Timothy Copeland (@timccopeland)
[Disclaimer: I own various cryptocurrencies that may include the topic of the article. My main holdings are in XRP, XRB, ADX, DGB, NAS.]
If this post has informed you or helped in any way, feel free to donate ETH to 0x8c854F441248936BD12EB32373bb16Aa99129483