"How I Made $1 Million On Bitcoin... And Lost It All Again"

Authored by Peter McCormack via The Guardian,

"I got caught up in the hype. Then the bubble burst ...I kept thinking, there's no point selling now..."

Until 2016, I ran an advertising agency in London. At our peak, we were highly successful; I had a team of 35 people, a £3m turnover and a Covent Garden office. When the agency folded, I decided to invest in bitcoin.

Bitcoin is a cryptocurrency, a type of electronic cash that allows people to spend or trade via a peer-to-peer network without the involvement of banks or other intermediaries. It is a cheap, efficient way of transferring funds or holding value, which can be converted back into sterling at any time. I had used it before to buy treatment online for my mother after she was diagnosed with cancer. I had also dabbled with investing in it in 2013, and made and lost some money: bitcoin is prone to sudden fluctuations in value. But the market seemed to have moved on, and I decided it could be a good way to make some profit on my savings.

At first I deposited £5,000; at the time, January 2017, bitcoins were about $600, so I bought seven or eight and spent the rest on other cryptocurrencies. But over the next few weeks I became hooked and ploughed in a large chunk of money – £23,000 in all. I remember telling people, “I really think the value of bitcoin could rise to $2,000 this year.” I could never have predicted it would peak at 10 times that. By the middle of spring 2017, my investment had risen to about $300,000, and by the summer it was at half a million. Media interest in bitcoin was growing and friends kept asking how they could get into it, so I started a Facebook group, then a website and finally a podcast devoted to the subject. As excitement built, more and more people got involved, forming the conditions for a bubble; but many of us were too caught up in the hype to exercise caution.

At the end of 2017, bitcoin had reached almost $20,000 and my portfolio had ballooned to about $1.2m.

That is when I got a little out of control. I have always been an entrepreneur, and since I was a kid I had dreamed of buying my local football club, Bedford Town, becoming chairman and getting them into the league. I thought the project might cost £5m, so that was the figure I decided to aim for. I estimated I could get there within six months.


< Prev 1 2 Next >

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks