Rags to Riches to Rags – How One Bitcoin Enthusiast Made $1.2 Million and Lost It All

Peter McCormack created a small fortune from Bitcoin’s boom in 2017. These days are long gone, and McCormack shared his experience about his adventure with cryptocurrencies.

Numerous Bitcoin investors saw their wealth growing during the crypto frenzy last year, as Bitcoin’s price reached unprecedented highs.

Hodlers attended crypto events around the world, arriving with their shiny Lamborghinis and Ferraris to show off the massive riches, cryptocurrencies had brought them.

Peter McCormack is one of those people who went all-in with Bitcoin and lost everything, a story on which many could visualize themselves.

In a thread on Twitter, he shared his experience from going bankrupt to becoming a millionaire and then back to losing everything.

Going All in on Crypto Fueled By Greed and Ambition

With 20 years of professional experience in digital marketing, he owned an advertising agency which generated £3m annual turnover at its peak.

Both McCormack and his 35 employees were left without a job after his company defaulted in 2016.

McCormack, who was dealing with his mother’s fight against cancer at the time, decided to invest a part of his savings ($32k) on Bitcoin and Ethereum.

McCormack maintained a conservative investing strategy initially, withdrawing 25% of the profits frequently.

By summer 2017, his equity had reached $500k, and the capital gains seemed unstoppable.

McCormack then became greedy (as he says) and invested all his savings in creating a diversified portfolio of altcoins.

Dazzled by the wealth he generated so quickly, his life and spending habits soon changed.

He started purchasing expensive clothes, traveling business-class and donating his money to family and charity.

Cryptocurrencies were growing so rapidly, that he was even making plans to acquire his favorite football team in England.

McCormack was caught up in the hype and cryptos became his full-time employment.

Besides trading the highly volatile cryptocurrencies, he further invested $300k in mining hardware (70 S9s and 70 DragonMints) and joined mining pools.

Moreover, he started offering consulting services to traders and launched his podcast, which remains his only income source until now.

By the end of 2017 when Bitcoin reached its all-time high at $20,000, his assets were valued at $1.2 million, a point McCormack regrets he didn’t withdraw his massive profits.

As Bitcoin had previously crashed and recovered several times, McCormack believed the same would happen again.

He claims with certainty that experienced investors could have forecasted that a market crash was about to happen.

However, he added:

 “any sensible investor should have been taking money off the table when making such huge profits. There were though, many like me who just got caught in the hype and expected it to carry on.

Only Debris Left After the Stardust Settled

Bitcoin has plummeted but not recovered since.

Instead, it has undergone several price drops, and investors have suffered tremendous losses.

Bitcoin mining is not profitable anymore, and mining companies regularly shut down, trying to get rid of their costly ASIC rigs.

McCormack has decided to liquidate his holdings and terminate his active contracts with data centers that drain his BTC balance every month.

McCormack Now Retired From Trading

McCormack’s Bitcoins will be gone after he pays out a large amount for his tax liabilities.

In addition to the financial disaster, his involvement with cryptocurrencies also led to a broken marriage, as well as his addiction to drugs.

Although he has accepted this venture as a failure, McCormack does not feel bitterness about this journey.

He remains positive towards Bitcoin, which he distinctively separates from other digital currencies.

He recognizes it as a commodity but urges investors always to cash out their profits.

Bitcoin could have been a life-changing experience for McCormack, but he acknowledges that money can’t affect happiness. He said:

“The last two years have been incredible, I have travelled the world and met some of the most interesting people. I have built up one of the largest podcasts in the industry and learned so much. I am now officially retired from trading, I am not good at it. What I have learned from this is that money does not really change happiness, it makes certain things easier but a lot of happiness comes down to your emotional state and personal relationships, money does not fix these.”

Author: Nick Tsakanikas
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