Given cryptocurrencies like bitcoin can see their value swing by as much as 15 per cent in 48 hours, it might be sage advice to transfer any gains into something more concrete.
Rich Whitehurst, 37, from Stoke-on-Trent, might have taken that advice literally.
After quadrupling an investment of around £240 in around 60 days during the previous bitcoin boom in 2017, the dad of two used some of the nearly £3,000 he made to buy a new driveway and replace his windows.
37-year-old Rich Whitehurst, from Stoke-on-Trent, quadrupled his bitcoin holding in the previous boom in 2017
Having previously mined bitcoin himself in around 2016, which caused a row with his ex-wife over the ‘drastically rising cost of our electricity bills’, he stopped ‘as the return wasn’t huge’ and instead began investing loose change through the cryptocurrency exchange Coinbase around a year later.
‘It was £10 here, £30 there, just money I wouldn’t notice, a “let’s see what happens as I won’t miss it” kind of a thought’, he said. ‘My investment quadrupled, and my mining profit had increased so it was a win-win and great bragging rights to my friends who said I was mad.’
He cashed out a few days before bitcoin crashed from a then-peak of just over $19,000 a coin in December 2017 to as little as $6,000 in February 2018, although he still maintains a modest holding which he plans on keeping for the long term.
Like fellow cryptocurrency enthusiast Chris Sedgwick, who turned £2,000 worth of coins bought in 2015 into £75,000 and bought a Skoda Octavia, Rich has turned intangible profits into intangible gains.
As well as his home renovations, Rich, who has sold video game consoles and electronics online since 2017, bought an Xbox One and kept some of the profits for ‘some everyday spending money’.
He hopes to use his cryptocurrency and other conventional investments to be mortgage-free at the age of 40.
Rich used his profits to redo his driveway and purchase some new windows
But although he remains bullish on bitcoin, predicting it could hit £100,000 a coin by the end of next year, up from the roughly £36,000, or $51,000, it sits at now, he has some advice for a new breed of investors who have bought into the latest bitcoin boom.
‘I would caution against people doing what I did without doing research, I got lucky, as simple as that’, he told This is Money.
Relatively experienced investors, or at least those who were around for bitcoin’s previous all-time high in 2017, are rapidly being drowned out by newcomers.
As many as a fifth of Britons could now hold cryptocurrencies like bitcoin and ethereum, according to a survey from the comparison site Finder, up from just 3 per cent in 2018.
As many as 19% of Britons could potentially own bitcoin according to a recent survey by the comparison site Finder – which would equate to 15m people. However some analysts said the figure was too high
This could represent a 558 per cent rise in just three years, while a…