Investor takes out $127,000 loan to buy cryptocurrency, loses 85 per cent

HAHA

 

greed make this happen

 

He's not an investor he's a gambler.

 

Bad timing ....

 

Lucky he didn’t buy silver instead, he would have been in real trouble.

 

Well at least he would have had something real ...

 

He might have even been better off in silver .... the silver price history chart pattern for the last 2 years is practically identical in AED and USD ...

 

I wouldn't say greed, just stupidity. He clearly had no concept of what he was doing. Many people take out much larger sums of money in order to profit, this investor forgot that leveraging is inherently dangerous regardless of the asset being purchased. And when it comes to crypto there's nothing more speculative. But I have to say that it has far more potential than silver IMO.

But then there are members of this forum that leverage and make successful decisions. Most of us do it when we take out a mortgage and the vast majority of business owners do it when they borrow for capital goods. So whilst it may appear to be greed to outsiders it's just individuals taking what they think are viable risks.

 

is it wrong that this story made me smile? I like people

 

May as well cash it in now and plonk the $19050 on Nature Strip to win the "Everest" this year.

Current odds 7/1 will return $133 350 in less than 3 months.

 

...with on-going storage requirements and costs.

 

Feel sorry for the guy. There were people here and other forums complaining about credit card companies blocking access to crypto exchanges.

 

No one should be buying crypto or silver or gold using credit card.

 

To put it into perspective it's probably the worst possible timing for buy & sell. If it were Australian real estate it would be similar to the Moranbah buyers who had borrowed millions (using leverage) and subsequently having the market collapse under them, leaving them with millions in negative equity, probably losing the family home.

At least this guy sees some light at the end of the tunnel by having a repayment plan over 3-5 years.

 

I would argue the opinion that leveraging is inherently dangerous. IMHO it is a damn good way of bolstering returns.
What is dangerous is leveraging with no risk management in place - mainly due to the predetermined certain outcome that he was on a winner, and that could be attributed to the fact he was stupid.
Sorta similar to the predetermined outcome many metal investors had when they dived in..... that have also been burned over the last 5 or so years.

 

Very defination of bubble, when people buy something convinced that it is sure thing.

The crazy thing is still many people who bought big when Silver was $50 still have it stored somewhere.

I can imagine hundreds of thousands people in Korea who bought a few hundred or few thousand dollars worth of Btc on credit card on the way up to $15k to $20k USD still hodling it, but now paying of the debt will take years to wash through the system.

 

There are also "crazy people" who bought big when ag was $17 and still having it stored somewhere. Crazy people bought Amazon but it made money every year since 2003. Bubbles can go on for a longer time then anyone of us here could imagine especially if central banks are actually the ones propping up the bubbles.

 

i think a lot of people don't realise that property can drop 70% which was what happened in Hong Kong post 1997 AFC.

 

Precisely, anyone owning Amazon after the tech crash should have sold amazon in 2000 and bought back in 2010.