News

The recent crypto crash has hurt many first-time investors : NPR


Like millions of people, Michelle Milkowski bought Bitcoin and other digital currencies as the crypto industry spent millions on marketing.

Kholood Eid for NPR


hide captions

switch captions

Kholood Eid for NPR


Like millions of people, Michelle Milkowski bought Bitcoin and other digital currencies as the crypto industry spent millions on marketing.

Kholood Eid for NPR

For Michelle Milkowski, who lives in Renton, Washington, one thing leads to another.

Since her son’s daycare was closed during the early days of the pandemic, she has some extra cash. So like millions of others, Milkowski downloaded Robinhood Commerce application.

At the time, the stock market was in the early stages of what would become a record-setting run, and Milkowski’s new pastime had become lucrative.

She continued to trade stocks, but in early 2021 something else caught her eye: Milkowski noticed that the value of Bitcoin had reached $60,000.

“I couldn’t believe it,” she said, noting that she first heard of the popular cryptocurrency in 2016, when its price was less than one percent. “I feel as if I just missed the boat, because I could have bought it before it skyrocketed in price.”

Last spring, Milkowski took a different look at Bitcoin and she took the leap. “Better late than never,” she remembered thinking.

First, Milkowski bought $500. Then $10,000. At the end of last year, Milkowski estimated, she spent nearly $30,000 on crypto.

Looking back, times were terrible.

Like many other first-time investors, Milkowski bought cryptocurrencies when they were hitting all-time highs and when companies were spending tens of millions of dollars on marketing to expand their appeal. of electronic money.

Winger Tom Brady and his wife, supermodel Gisele Bündchen, starred in commercials for FTX and commercials for Crypto.com featuring Oscar-winning actor Matt Damon.

They are designed to appeal to potential investors’ fear of missing out.

“Luck favors the brave,” said Damon. The ads include little or no explanation about cryptocurrencies and how risky the asset is unregulated.

So far this year, Bitcoin has lost half of its value.

Image of Marco Bello / Getty


hide captions

switch captions

Image of Marco Bello / Getty


So far this year, Bitcoin has lost half of its value.

Image of Marco Bello / Getty

About two weeks after the Crypto.com ad launched, Bitcoin has set a new record: $68,990. Today, it’s less than a third of that.

Although its proponents have long claimed it would be a hedge against high inflation, that has not been proven true. When inflation increases, Bitcoin fell in tandem with high-growth tech stocks. Rising interest rates have made speculative assets less attractive, and cryptocurrencies are no exception.

Milkowski, who manages a major insurance company, said those ads and the “crazy excitement surrounding cryptocurrencies” drew her in.

“You know, that gives it some sort of approval that it’s not just scammers using it,” she said. “Then I felt safe trying it out, putting my money in it.”

Milkowski eventually forked from Bitcoin, into Ethereum, Shiba Inu, and Luna, a so-called “stablecoin” that collapsed quickly and catastrophically in May.

From the beginning, Milkowski decided not to risk more than she could afford to lose, and Ramiro Flores laid out the same basic rules when he first bought Bitcoin in 2018.

“I like to gamble. I go to Vegas quite a lot,” he said. “So I said, ‘Hey, you know what? Like, this is just like a little trip to the casino. “

Flores, who was a firefighter in Edinburg, Texas, recalls talking about cryptocurrency in the firehouse. After doing some research, he bought $2,000 worth of Bitcoins.

At its peak, the total value of cryptocurrencies worldwide was around $3 trillion. Today, it’s about $1 trillion.

Flores called the recession heartbreaking, but it didn’t shake his resolve.

“That’s a complete idiot,” he said. “But I have faith.”

Flores has continued to buy Bitcoin and Ethereum, and he says he believes they will bounce back. Final.

He is also optimistic that wider adoption of digital currencies will lead to changes to banking and the economy.

“Right now, I’m down some money, but I’m like, ‘Hey, if I don’t sell, I’m not going to lose.’ Technically, I didn’t lose that money,” he said. “So I’m going to keep riding the little roller coaster we’re on.”

At the beginning of the pandemic, Michelle Milkowski started investing in penny stocks. A few months later, she bought crypto for the first time.

Kholood Eid for NPR


hide captions

switch captions

Kholood Eid for NPR


At the beginning of the pandemic, Michelle Milkowski started investing in penny stocks. A few months later, she bought crypto for the first time.

Kholood Eid for NPR

For Milkowski, the ups and downs – well, especially the ups and downs – were too many, and she decided to walk away.

“There is certainly peace in selling off such a volatile asset,” she said. “I don’t have to worry, ‘Did I lose $500, $1,000 today?'”

In May, Milkowski fully cashed out. She decided to cut her losses, the final amount was about $8,000.



Source link

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button