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

Discussion in 'Digital Currencies' started by ozcopper, Aug 14, 2018.

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  1. ozcopper

    ozcopper Administrator Staff Member

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    A 32-YEAR-OLD has revealed his eye-watering $3000-a-month “lesson” after making a seriously poor financial decision.



    Link: https://www.news.com.au/finance/mon...t/news-story/7806e7acca0eec8a282f9d83f1d8d07b
     
    ozcopper, Aug 14, 2018
    #1
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  2. spannermonkey

    spannermonkey Well-Known Member Silver Stacker

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    HAHA
     
    spannermonkey, Aug 14, 2018
    #2
  3. andrewlee10

    andrewlee10 Well-Known Member Silver Stacker

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    andrewlee10, Aug 14, 2018
    #3
  4. JulieW

    JulieW Well-Known Member Silver Stacker

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    He's not an investor he's a gambler.
     
    JulieW, Aug 14, 2018
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  5. systematic

    systematic Well-Known Member

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    Bad timing ....
     
    systematic, Aug 14, 2018
    #5
  6. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    Lucky he didn’t buy silver instead, he would have been in real trouble.
     
    Shaddam IV, Aug 14, 2018
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  7. systematic

    systematic Well-Known Member

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    Well at least he would have had something real ...
     
    Last edited: Aug 14, 2018
    systematic, Aug 14, 2018
    #7
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  8. systematic

    systematic Well-Known Member

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    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 ...
     
    systematic, Aug 14, 2018
    #8
  9. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    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. :)
     
    mmm....shiney!, Aug 14, 2018
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  10. leo25

    leo25 Well-Known Member Silver Stacker

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    is it wrong that this story made me smile? I like people :)
     
    Last edited: Aug 14, 2018
    leo25, Aug 14, 2018
    #10
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  11. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    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.
     
    Eureka Moments, Aug 14, 2018
    #11
  12. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    ...with on-going storage requirements and costs.
     
    Eureka Moments, Aug 14, 2018
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  13. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Feel sorry for the guy. There were people here and other forums complaining about credit card companies blocking access to crypto exchanges.
     
    Ipv6Ready, Aug 14, 2018
    #13
  14. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    No one should be buying crypto or silver or gold using credit card.
     
    sgbuyer, Aug 15, 2018
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  15. willrocks

    willrocks Well-Known Member Silver Stacker

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    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.
     
    willrocks, Aug 15, 2018
    #15
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  16. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    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.
     
    wrcmad, Aug 15, 2018
    #16
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  17. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    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.
     
    Ipv6Ready, Aug 15, 2018
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  18. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    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.

    [​IMG]
     
    sgbuyer, Aug 15, 2018
    #18
  19. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    i think a lot of people don't realise that property can drop 70% which was what happened in Hong Kong post 1997 AFC.
     
    sgbuyer, Aug 15, 2018
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  20. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Precisely, anyone owning Amazon after the tech crash should have sold amazon in 2000 and bought back in 2010.
     
    Ipv6Ready, Aug 15, 2018
    #20
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