Bitcoin investor loses $2m
That is, if the reports in the media are true; it all depends on the real facts.
An investor it is claimed lost $2m on the Bitcoin he had invested with FTX. We all know that this is a crypto exchange which went bust.
What we do not know is whether the $2m lost in this disaster or whether his original investment into Bitcoin was $100k, $200k, $500k, or $1m.
If his original investment was $500k then that is the amount of his true losses.
I remember in 2022 when the Bitcoin halving took place, the newspaper report stated that Bitcoin investors lost half of their money. This was only true if an investor had bought Bitcoin during its previous peak. If I had sold my Bitcoin then I would have received more than my original investment. It all depends on when one had bought their Bitcoin.
Leaving all that aside, there are some lessons to be learned here; the main ones being:
1 Investing in Bitcoin in no substitute for your retirement fund
2 Do not invest in Bitcoin if the loss of your money will cause you considerable financial hardship
3 Diversify between different Bitcoin exchanges. That is coinbase, blockchain, and others which are available.
4 Do not invest in Bitcoin if you cannot stomach the thought of losing your money.
It is important to keep in mind that whenever there is a chance for capital gain, there is a chance for capital loss. Investors are betting on the chances that Bitcoin will rise in price. It is just a matter of understanding the risks when investing in Bitcoin.
There is no method of investing which will guarantee that you will not lose or that you will receive an x amount in return. Past performance is no guarantee that whatever happened in previous years will repeat itself in the future.
Have some spare cash to invest in Bitcoin and are prepared to lose it?
Then check out the coinbase, a well-established crypto-exchange. Coinbase makes it easy to buy and sell bitcoin. Check it out here:
https://coinbase.com/join/gochwv
Disclaimer: I may receive a small commission if you sign up for coinbase.
