Kyle is referring to the second half of 2017, when the price of Bitcoin – a decentralized digital currency commonly referred to as cryptocurrency – went from being worth $3,000 a coin in May of that year to its peak of $20,000 per Bitcoin just seven months later.
A self proclaimed “Crypto millionaire.” “That’s when I invested blindly what I had left from my savings. Boy I had no idea. It went well as you might know. I also had the right timing when I switched from Ethereum to eos one year later. My initial investment was suddenly worth about almost 100x in a liquid market. Worth about a million [dollars]. I didn’t tell anyone about that apart from my parents, my best friend and the colleague who told me about crypto.”
Noel points to eos – the same cryptocurrency company that upended redditor soundsoviel’s life – as the peak example of how absurd the speculation around cryptocurrency became.
As Joseph Borg, president of the North American Securities Administrators Association, explained to CNBC in December 2017, many people beyond the redditors above were taking out mortgages to get in on the crypto mania.
“We’ve seen mortgages being taken out to buy Bitcoin. People do credit cards, equity lines,” Borg told CNBC. “This is not something a guy who’s making $100,000 a year, who’s got a mortgage and two kids in college, ought to be invested in.”
More to Borg’s point, the same CNBC article reported that roughly 18 percent of people who buy Bitcoin do so using a credit card, according to a 2017 survey by loan marketplace LendEDU. “Of those, 20 percent have not paid off their balance,” per the 2017 CNBC report.
The first cryptocurrency index fund, tells me that it’s tragic to hear that people were mortgaging their financial situation to make investments in Bitcoin or other digital currency assets.
This article was summarized automatically with AI / Article-Σ ™/ BuildR BOT™.