In a regrettable event, a 22-year-old Google employee lost a significant sum of Rs 67 lakh after delving into the unpredictable world of cryptocurrency.
This young software engineer, Ethan , originally from Orange County, California, embarked on his investment journey in the stock market from a tender age, guided by his parents. His investment portfolio is said to encompass over Rs 1 crore in retirement and brokerage accounts, along with ownership of two houses.
, the young techie suffered a loss of Rs 67 lakh in the cryptocurrency market from November 2021 to June 2022. This sum included Rs 24 lakh of his initial investment and an approximate Rs 41 lakh in unrealized gains, as reported by CNBC Make It.
Unrealized gains represent profits that have been earned but haven't been realized through selling the asset. In this instance, the techie's unrealized gains were erased when cryptocurrency prices experienced a significant drop in June 2022.
In the techie's case, he had gained around Rs 42 lakh when the price of Bitcoin reached its highest point ever in November 2021. However, the cryptocurrency market took a sharp downturn in the subsequent months, and by the summer of 2022, the price of Bitcoin had plummeted by more than 70 percent. This ultimately resulted in the techie losing over Rs 67 lakh on his cryptocurrency investment.
"I was investing with money that I didn't have," admitted to the publication. "Once the crypto market reversed course, my losses became much larger."
In hindsight, Nguonly's main regret is not so much the decision to invest in cryptocurrency but rather the use of borrowed funds for these investments. He explained, "That's why my losses were magnified."
Despite his past experience, still maintains his cryptocurrency investments, but he has limited his choices to Bitcoin and Ethereum, avoiding riskier alternatives.
"I still have faith in cryptocurrencies in general," he shared with CNBC Make It. "However, I do recognize that many of these alternative coins can be risky, and I steer clear of putting my money into them."
His most significant takeaway from his previous error is to "only invest money you actually possess and don't engage in highly speculative investments without leverage," he emphasized.