“So here is a thread on how I turned $32,000 into $1.2m and back to pretty much zero (once taxes are paid),” tweeted Peter McCormack, host and founder of the podcast What Bitcoin Did, on his crypto experience. “Just note, I am not bitter or salty in any way at all, the last 2 years have been an amazing ride – traveled the world, been wealthy, been poor.” What follows is being praised as an experience nearly everyone in the space can identify with, even if the losses were not exactly the same. CryptoTwitter is starting to become cathartic.
Peter McCormack Tells a $1.2 Million Story
“Dec ’16, my advertising agency folded,” Peter McCormack began his very revealing, at time vulnerable, Twitter threat. “I had a little bit of money left and I put $32k into Bitcoin and Ether. As it started to go up I diversified into everything, Monero, Dash, this that, any crap – even Ripplecoin. Everything just kept going up.”
The following Spring, he was up 10X, and by Summer he was half way to a millionaire. “I used to take 25% out but towards the end of the summer I got greedy and put it all back in and by December it was $1.2m,” he explained.
McCormack began to feel what many of us at the time believed: we’d suddenly become financial wizards. His investment hand was so hot, he even dreamed he would be able to eventually accumulate $5 million, enough to purchase his hometown professional soccer team, Bedford Town Football Club. He would need about 6 more months of gains to get there, something seemingly very possible at the time.
Wearing Many Hats
He spread his money out among trades, started a podcast, began mining, joined a mining pool, and even became a consultant. “Yes,” he confirmed, “all of the above as a one-man army.” However, “As the market started to crash I just ignored it, kept thinking it would come back, it crashed like 4 times in 2017. But it didn’t,” and he further revealed it has been mining that “busted” him most, purchasing a $300,000 set up at one point.
McCormack admits, “Mining made money for one month, broke even for a month and has consistently lost since. Problem is I have been stuck in data centre contracts paying a fixed 18 cents fee. Each month digging into my BTC to pay the bills. Finally paying $19k to release from the contract,” which is a brutally unforgiving scenario many can related to.
He describes his mining operation as continuing to lose profit, but not at the same rate. He’s more or less close to capitulation altogether at this point. “At my peak I had around 150BTC but trading shit coins I was losing BTC while gaining $,” he wrote. “When I finally realised this I was down to around 80BTC. But this has been dropping in value as some of the coins I have been holding have collapsed.”
McCormack blames greed and unrealistic expectations for his investment failure. “After I pay my tax bill pretty much all is gone,” he laments. “The good news – I have the podcast which is now generating an income, something a little more reliable.” He also explained he is a father, and is making better choices going forward, escaping the volatile crypto market for now to make sure he can keep the podcast afloat.
He’s downright philosophical, insisting he doesn’t “want any donations or sympathy. Sure I regret stuff but I am happy with how it has all played out. If there is another bull run and you make a bunch of cash then remember to take profits. Don’t overstretch yourself. People say don’t invest what you can’t afford to lose, well don’t keep in Crypto profits which will change your life.”
The thread is worth reading even beyond McCormack’s initial cautionary tale. Comments and responses alone make it compelling stuff. Whatever, Dear Reader, you might be going through during this bear of a bear of a bear crypto market, it can be nice to know you’re not alone.
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