“A fool and his money are soon parted.” – Thomas Tusser
I recently stumbled across a video about an unfortunate guy who lost his entire life-savings because of a cryptocurrency Ponzi scheme called BitConnect. This particular scam was supposed to take a willing person’s money and lend it, paying the lender interest daily. You would then subsequently be paid your principal plus your interest accumulation after 120 days.
That sounds like a simple concept right? Well, would be simple, if the company didn’t suddenly close its doors, taking everyone’s money with them.
Watching that video, I really felt bad for him, because I can tell he truly thought he was doing something that would change his life. Unfortunately, it did change his life, just not in the way he was hoping.
Aside from him, some people lost hundreds of thousands of dollars. Although I feel for him and others who fell for this scam, one must do their research before they “invest” in something. What BitConnect was proposing just didn’t seem sustainable, even when it came across my desk. Just because you see in the news people are making millions of dollars from cryptos, that doesn’t mean that anything connected to cryptos will do the same thing for you.
NEVER put your entire life-savings into something so unstable and unregulated. There is one thing to take chances, but it is another thing to be completely foolish.
From the video, it doesn’t seem like this man has a wife and kids, so at least he doesn’t have a family whom he would be affecting, so he may be able to get back on his feet. He worked extremely hard, and like he said, all his savings just disappeared by the snap of a finger. Invest your money wisely in things that have a more realistic return, and do not be greedy.
I invested in cryptocurrencies myself. I made my money and got the heck out of there! By investing in stocks for a few years, I have learned when to play ball and when to sit on the bench. I bought crypto cheap, sold it high, and bought another form of assets with it. THAT is a smart move. I used the thousands of dollars in profits to buy assets.
My heart aches for this man, and if I had the means, I would send him a cheque for thirty thousand immediately. Yes, people make mistakes, but you have got to learn sometimes from them. Losing that $30,000 may over time change how he thinks about investing and money and he may beget wealth because of what he learned in his down period.
Be wise with your money folks. The similarity with $1 lost and $100,000 lost is that they are both lost. To value one dollar is to be deserving of a hundred thousands dollars.
Until next time,
Live Long and Prosperous.
Value Investing Millennial Jahnome McEwan provides FIFTY tips for Young Adults looking to build wealth from now. If working a 9-5 until retirement twists your stomach, Jahnome has a way to get you out of it!
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