Tuesday , October 19 2021

He mortgaged his house to buy Bitcoin for $ 20,000 and almost lost everything | CryptoNews


Things in life of R.Y. they were rather monotonous in 2017. I was a developer and I spent years studying the Bitcoin code. However, he did this only to advance the development of his company's financial technology.

He had not been totally interested in Bitcoin technology, although he shared his ideals of decentralization. He did his job for a private company as an automaton, betraying his cypherpunk principles. However, he woke up when he saw that the price of cryptoactive was rising. R.Y. He was the father of two children and his partner was a nurse. Among them they held double shifts in order to pay the bills.

R.Y. invested in the BTC in the last quarter of the year and made a profit that his work, with a very unfair salary, had not given him until then. Although he was aware of Bitcoin's operations, he clearly saw it as a business. He decided to quit his job in November 2017.

The graphics were favorable for the price of the BTC and its profits negotiation they were reason enough to think the good times would not stop. However, he wanted his children to have the best Christmas of all, so he made a hasty decision that would completely change the course of his life. Without consulting Sophie, she took the actions of the house in which they lived, which she inherited in the center of the city, and he mortgaged for $ 7,000.

With mortgage money, a share of the savings and gains obtained previously, he raised a total of 0.5 BTC in his cold wallet. For December 17, 2017, with the BTC valued at $ 20,000, these were converted into $ 10,000. I was planning to double the amount very soon.

However, from 20,000, the BTC dropped to 19,000 in one day. R.Y. he thought it was a small setback in price, as had happened on December 10, when Bitcoin went from being worth 17,000 to about 13,000. So it would be a matter of time for the BTC to recover and pay. He stopped his negotiation and he dedicated himself to being holder (the one who keeps his cryptoactive ones waiting for a considerable increase in their price) while bitcoin did what he wanted.

That Christmas worked normally, the children received their gift with what was left of the savings and Sophie did not suspect that they were about to lose everything. However, R.Y. he could not stand the pressure and He confessed everything at the end of January 2018. By then, the BTC was already at $ 11,000. Sophie took the children to her mother's house before being taken to the streets because they could not afford the mortgage.

R.Y. He was deeply depressed and about to take his own life, but the love he felt for his children was stronger than that. He had to do something to get his family back. As he had experience in developing financial technology, he accepted open source application development work for a company that gave him a salary above $ 4 million per month.

When the government finally took over the house, his friend John allowed him to sleep on one of the furniture in his living room. I watched the kids on the weekends and, although Sophie still loved him deeply, she just addressed the necessary words about child care.

Jhon, worried about R.Y.'s mental stability, paid psychiatric treatment with a specialist in financial loss. On his recommendation, R.Y. continued trading, but this time not with bitcoin but with altcoins. R.Y. He also left erratic behaviors such as Bet all your money on a single crypto-activean issue that had been fatal to him.

R.Y. He used the scalping which seeks small profits in operations that last very little time. To do them, he used the leverage technique. This consists of operating with more money than is available. For this, the broker grants a temporary loan. This allows you to trade with positions larger than the funds you have in your account.

In order for the leverage to be secure, adequate risk management was required, which R.Y. he did not hesitate to implement. Then, R.Y. scheduled your broker with stop the loss ("Stop loss" in Spanish) so that the system knew how much I was willing to lose. However, gains from this type of strategy were very low in a declining crypto market, which characterized 2018.

R.Y. He did not stop saying that trading was a good deal, but he tried something else. As I had spent years studying the Bitcoin code, He decided to devote himself to its development. For months, he designed a Bitcoin Improvement Proposal (BIP), which was discussed in the Bitcoin Core e-mail list on the Linux Foundation. Once discussed, a formal draft that was reviewed by the community, by the maintainers, and sent to the BIP editor was created on GitHub. The proposal, which did not involve an irreversible change in software, passed this last stage and received a number, a category and was integrated into the Bitcoin repository.

As R.Y. demonstrated a thorough knowledge of the Bitcoin code as well as a legitimate concern for its maintenance, caught the attention of a development laboratory founded in 2014. Formed by other developers of Bitcoin Core, this lab would have been designed to support and maintain Bitcoin and other systems between peers in a decentralized way. R.Y. He was hired by this company, which offered him a steady income.

The money obtained was enough to have a good quality of life and after two years, Sophie and the children were already with him. They gathered in front of the Christmas tree that the embargo had not taken. On the table, a semi-finished pizza cooed that the kids did not like it because of the flavor of the anchovies. In a secret compartment in one of his legs, he waited for a cold wallet with 4 BTC. Our protagonist began to tell his children how both elements reminded him that his bad financial decisions were about to take away what was really important.

Featured Image by pathdoc / stock.adobe.com

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