2022 hasn’t really been a great year for cryptocurrencies. Everything from bitcoin to ether has seen its value evaporate. So, of course, 2022 was the year I made my big “investment” in bitcoin.
OK fine. It was more of an investment for show than a real investment. Towards the end of 2021, PayPal announced that it was going to provide a Bitcoin wallet. You could transfer your PayPal funds to bitcoins. I could not resist.
– 14% in one week
So the 1er January 2022, I bought for 50 dollars of bitcoins. As I documented, the process was not easy. There were fees, and Bitcoin’s vaunted anonymity was undermined in order to meet PayPal’s verification requirements. But still, I went through it. Dear readers, I did it for you.
But that’s okay, because I was going to be crypto-rich. Not really. After all, $50 can’t go that far. In my case, they went to -14% in one week. Yes, they have lost value.
After three weeks, I had lost 28.11%. And that’s the last time I informed you about the performance of this investment.
Bitter balance sheet
Today marks exactly six months since I started my foray into the billion bitcoin race. So how am I doing? Well, that’s not pretty: here I am 60.31% below my starting point.
Now, to be fair, I only lost $30.85. And that’s good for me, because I get a lot of good article content out of it, which was my intention. I will do another article at the end of 2022.
But what if I had been a serious investor with visions of cryptocapitalism in my head? If I had invested $500 instead of $50, I would have lost $300. If I had invested $5,000, I would have lost $3,000. And if I had invested $50,000 with the aim of getting big returns, I would have lost $30,000!
Volatile bet
However, everything could change in the blink of an eye. After all, bitcoin is an imaginary counterfeit currency that consists of nothing but bits in a blockchain. But as I mentioned in January, I don’t recommend betting your dollars on bitcoin (or any other cryptocurrency, for that matter) — unless you’re ready to lose your shirt.
Seriously, this is a volatile bet. If you’re comfortable with gambling and know exactly what to expect, that’s one thing. But you must be ready, willing and able to lose your entire investment. If you can’t take the hit, don’t take the risk.
And, unless there’s some really exciting bitcoin news by then, I’ll see you right after the new year with my final countdown on this 2022 investing experience.
Source: ZDNet.com