A bitcoin investor who lost $1 million in the bear market still believes the original cryptocurrency is a “force for good.” However, Peter McCormack warns others to be more careful with their money.
“I wish I had taken everything out before the bubble burst,” McCormack wrote at the Guardian. “I have earned money in the past through hard work and enjoyed it more.”
‘Too Caught up in the Hype’
McCormack started investing in bitcoin in 2016, after the London advertising agency he managed folded. He says he started with an initial investment of £5,000 (US$6,400).
As prices rose, he bought up even more BTC. When the value of his holdings spiked to $300,000 in the spring of 2017, McCormack was hooked.
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.
— Palm Venice Beach (@PalmVeniceBeach) January 11, 2019
By December 2017 — when the bitcoin price soared to almost $20,000 — McCormack’s portfolio had ballooned to $1.2 million.
McCormack says escalating media coverage of the then-budding crypto market fueled the bitcoin mania. The virtual currency’s erratic price fluctuations commanded countless headlines.
Like other newbie investors who get rich quick but lack money-management skills, McCormack spent money carelessly.
I was traveling the world doing interviews for my podcast, taking friends out to expensive restaurants and buying extravagant gifts for my family…Much of my spending was quite frivolous.
‘I Sold Most of My Bitcoin’
By January 2018, the bitcoin price cratered from its record highs. As a result, Peter McCormack lost most of his money. He now supports himself with his podcast and says he would choose his podcast over the $1.2 million he lost.
Despite his harrowing experience, McCormack still believes bitcoin “is a force for good.” For example, he noted that women in Afghanistan are not allowed to open bank accounts, but can still work and get paid in bitcoin.
“My main focus now is exploring how bitcoin could help stabilize an increasingly volatile world,” he says.
More Money is Lost on Traditional Investments
Peter McCormack’s riches-to-rags story is being touted on social media as a cautionary tale about the dangers of crypto.
However, it bears noting that far more people have lost far more money on traditional investments.
As CCN reported, software pioneer John McAfee claims he lost $100 million during the 2008 global financial crisis. That was caused by Wall Street greed, not by “fringe” investments like bitcoin.
Now, McAfee is so disgusted with the corruption of the government and legacy financial systems that he refuses to pay any more taxes.
McAfee says he has not filed a tax return in eight years and dared the IRS to come after him.
We declared our independence from Britain and fought a bloody war to escape burdensome taxes, yet here we are, less than 250 years later, being burdened by income taxes that are more crushing than anythung rhe British dreamed of. Free yourselves people!https://t.co/mYy6z06tHc
— John McAfee (@officialmcafee) January 4, 2019
Wells Fargo: We Scammed Our Clients for 15 Years
While white-shoe bankers routinely trash crypto as shady, here’s a reality check: Wells Fargo — the third-largest US bank (overseeing $2 trillion in assets) — recently agreed to pay $575 million after admitting that it scammed its own customers for 15 years.
The fine comes just months after the mega-bank dismissed bitcoin as “too risky” an investment.
Since 2016, Wells Fargo has racked up more than $2 billion in fines. Why? Because it admitted that it systematically defrauded its own clients for almost two decades. Let that sink in.
— CCN.com (@CryptoCoinsNews) December 30, 2018
Bakkt Futures to Launch in the Current Quarter
Managing director and quant strategist at Fundstrat Global Advisors Sam Doctor suggested in a Twitter post published on July 19 that Bakkt’s Bitcoin (BTC) futures contracts will launch this quarter.
According to the post, which includes a summary of Fundstrat’s takeaways from the Bakkt Digital Asset Summit held on July 18, the firm’s futures will launch in the current quarter. The launch is set to follow tests announced last month, which are scheduled to start next week. The firm believes that the launch will be a catalyst to accelerate entry of traditional institutional investors. The post notes:
“THERE APPEARS TO BE A CRITICAL MASS OF ADOPTERS READY TO COME ON BOARD ON DAY 1 OF THE BAKKT LAUNCH, WITH THE SALES TEAM GAINING TRACTION AMONG BROKERS, MARKET MAKERS, PROP TRADING DESKS AND LIQUIDITY PROVIDERS.”
During the aforementioned event, Commodities Futures Trading Commission (CFTC) commissioner Dawn Stump apparently expressed that no current cryptocurrency could threaten financial stability and that the regulator sees a growing demand for Bitcoin futures from the public. Also during the summit, chief information officer at crypto investment firm Blocktower Ari Paul was reportedly confident that once a killer app or user interface makes cryptocurrency on-ramps safe, reliable and as easy to use as Paypal, retail adoption will be enormous.
According to the Fundstrat notes, Paul also said that institutions should not dismiss crypto assets, considering their low correlation with traditional assets and with compound annual growth rates of 200%-300%. He also said that inflation and confiscation resistance of cryptocurrencies are a key value proposition.
Pantera Capital CEO Dan Morehead, on the other hand, said that most tokens will fail and a handful of base protocols will survive, but with thousands of decentralized applications built on top of them.
As Cointelegraph reported in May, the Intercontinental Exchange is reportedly taking steps to ensure approval from the United States CFTC for Bakkt.
Bitcoin Price Slips 10% in 24 Hrs as Fed Raises Facebook Libra Concerns
Bitcoin Price Slips 10% in 24 Hrs as Fed Raises Facebook Libra Concerns
Bitcoin price (BTC) shed more than 10% on July 11 as markets appeared to react to criticism of Facebook’s Libra from a senior United States lawmaker.
Market visualization courtesy of Coin360
Data from Coin360 sees the majority of cryptocurrencies firmly in the red Thursday, hours after Federal Reserve Chairman Jerome Powell said Facebook’s offering should not continue development.
Libra, which aims to act firstly as a cross-border payment method, allegedly buoyed Bitcoin throughout recent weeks, with commentators arguing its public profile was driving publicity and uptake of Bitcoin itself.
Powell’s demands, which follow similar words from representatives of the Senate House of Financial Services Committee, leant weight to that theory.
“Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability,” he said during a speech before a congressional committee. “These are concerns that should be thoroughly and publicly addressed.”
“THESE ARE CONCERNS THAT SHOULD BE THOROUGHLY AND PUBLICLY ADDRESSED.”
At press time, BTC/USD traded down 10.4% at $11,530, having risen as high as $13,160 in recent days.
Bitcoin 7-day price chart. Source: Coin360
The drop places the pair still within its recent corridor between around $9,700 and $13,800, with volatility still in evidence across crypto markets.
Altcoins, meanwhile, delivered noticeably worse performance as Bitcoin price fell, with several assets in the top twenty by market cap shedding 15% or more.
Ether (ETH), the largest altcoin, lost a similar amount to Bitcoin, hitting $272 and firmly losing support at $300 once again.
Ether 7-day price chart. Source: Coin360
Among the worst performers were Bitcoin SV (BSV), which lost 17.2%, and EOS (EOS), which was down 20.2%.KEEP TRACK OF TOP CRYPTO MARKETS IN REAL TIME HERE
Bitcoin Approaches $11,000 With All Top 20 in Green
Saturday, July 20 — crypto markets have seen another upward move, with all top 20 coins by market cap seeing major gains, while Bitcoin (BTC) has approached $11,000 mark again.
After dipping below the $11,000 threshold on July 14, Bitcoin has approached the price point today, with its intraday high of $10,944, according to data from CoinMarketCap. The biggest cryptocurrency added 3.7% to its price to trade at $10,922 at press time. As Bitcoin has seen significant volatility this week, with its price having dipped below $9,500, the cryptocurrency is down around 3% over the past 7 days at press time.
Ether (ETH), the second cryptocurrency by market cap, is up over 5% and trading at $232 at press time. The top altcoin is down 13.4% over the past 7 days.
Ripple (XRP), the third top cryptocurrency by market cap, added 6.4% to trade at $0.339, also seeing a notable growth over the past 7 days, adding up to about 2.6%.
Bitcoin SV (BSV), the ninth top cryptocurrency by market cap, has added over 25% to its value today, seeing the biggest growth among the top 20 coins by market cap.
As of press time, total market capitalization amounts to $298 billion after that number dropped below $250 billion earlier this week. Daily trade volume amounts to around $63 billion.
The new wave of green on crypto markets follows a recent bullish prediction by managing director and quant strategist at Fundstrat Global Advisors Sam Doctor, who suggested that much-anticipated Bakkt’s Bitcoin futures contracts will launch in Q3 2019.
Additionally, India’s Minister of State for Finance Anurag Thakur said yesterday that there is no legislation in India that expressly bans citizens from using cryptocurrencies.