Pete Roberts who comes from Nottingham, England is one of the many people who threw all of their savings into a cryptocurrency. This happened when the prices went through the roof last year. 8 months on, he has now invested in a lot of digital tokens and he has decided to come clean about what happened to him during this time. He has stated that he tried to make some quick money an that the losses from this have left him somewhat financially ruined. He is 28 years old and he has a lot of company as well. When the big price drops happened, a lot of people never thought that they would make their way back but when the enormous gains happened, the value of the tokens soon feel again. Studies show that they happened to fall by around 75% and this is after they happened t peak in January. The currency markets have been through a good range of busts and even booms before and some of them have recovered since. In fact they have gone on to make far bigger gains when compared to what they made before but the fact that they went bust could have a huge impact on technology as we know it. This is because a ton of normal, hard-working people have gone on to invest in the tokens ever since and they are also going to associate the idea of cryptocurrency with financial ruin. This comes from Alex Kruger who is a former banker. He has been dabbling in the market for quite some time and he believes that irrational exuberance has lead to people making the wrong decisions.
It is really hard to know at the moment how many investors are in the red. Holdings are now worth less than the money that is being put in them and a lot of people have lost nearly everything that they have because of this. Those who have lost their money had tried to get into the market before the big bullish run but it is important to know that what they are holding now is still worth more than the initial investment. When you look at the metrics, you will see that more people put money into virtual currencies last year when compared to the preceding nine. CoinBase is the biggest brokerage out there at the moment and they have somehow been able to double the amount of customers that they had in the space of a year. When you look at Square you will soon see that their mobile app was being used to buy Bitcoin last year as well. Of course, when you look at all of the new customers that are on Coinbase and even on Square, you will see that they would be in the red if they did in fact buy the currency at any time over the last 9 months. The damage is probably bad in places such as Japan and even South Korea. After all, there was very little currency activity and investors who had practically no experience decided to jump in without any second thoughts.
So when you look at South Korea you will see that the biggest exchange opened up the biggest physical storefront and this makes it much easier for people to invest even though they did not feel entirely comfortable doing it online. The offices of one of the biggest exchanges, known as Coinone had one customer walk in during a two hour period when you look at last week. So many people have come out to say that the prices of any digital tokens have now fallen so much that people feel upset about it and this is not good to say the least. So let’s look at Kim Hyon-Jeong. She is a 45 year old teacher who is also a mother. She lives in Seoul and she has invested around 100 million won. This is worth around $90,000 in cryptocurrencies. She did all of this last year and she relied heavily on the savings that she had. She also had a loan and even an insurance policy as well. Even her savings are down by around 90%. She thought that cryptocurrency maybe able to provide a get-out option for those who work hard as well as helping people to escape the hardship that they experience in their own lives as well. By the looks of things, the complete opposite has happened and this is not good news to say the least.
In the US, Charles Herman who is a business owner became obsessed with currencies last September. He states that he feels as though he has wasted nearly a year of his life by trying to play with the market. He is back to the amount of money that he invested to start with but he has tried so hard to try and hone in on the revolutionary promises that a lot of people made. He assumed that those people were right when they said that the market was going to boom but that doesn’t look to be the case.
A lot of the anger that investors have is towards the virtual currencies or even alt coins. Entrepreneurs sold these coins in offerings. They were supposed to serve as a payment mechanism and this is for a brand new software as well. None of these companies however have delivered when you look at the promises that they made and this has ultimately made the tokens completely useless. Some people have even left the tokens and they have been scammed in the result.
Bitcoin have generally been better with the investors that they have it is down 70% when you look at the highs that they have experienced in the past. Some people have even gone on to experience a 90% loss as well. They too have struggled to win back some of the motivation that they had before. Bitcoin at the end of the day is not ready for mass adoption at all and it is really not suited to day to day use either. Mr. Herman has stated that the pessimism and even the fanatics who are constantly talking about currency are really not willing to hold up their intentions with the coins and they really do have the hope that they will recover when technology has been able to catch up with all of the hype.
Tony Yoo is 26 and he is a financial analyst. He has stated that he has spent more than $100,000 of his savings in one month alone and at his lowest point, his savings had dropped by well over 70%. Mr. Yoo still believes however that these tokens can in fact provide a brand new way to transact online without having to compromise or involve the corporate middlemen. A lot of the groups who were able to raise money last year are still trying to work on the projects that they have promised and there has also been a lot of attention being drawn from corporate engineers as well.