Why being a psychopath helps to become rich when investing in cryptocurrencies

Honestly: Has the recent slump of the crypto currency markets left you completely untouched – despite being heavily invested? Congratulations, you got nerves of steel – and you are most likely a psychopath…

Retrospectively, things look so simple. If you had invested just 1000 USD in Bitcoin in February 2011, when Bitcoin first reached parity to the US Dollar, you would earn about 7.1m US Dollar worth of Bitcoin today.

But is this really realistic? Most likely the story would have looked differently:
By July 2011 your investment in Bitcoin would have increased to 31,000 USD. What was an amount which most people in Western countries would be willing to afford losing originally has become a sizable amount, which would probably allow you to make a difference in your life. This new car you had been longing for ages? No problem anymore, all you need to do is sell your Bitcoin. This nice holiday you have not been able to save enough money for ages? No problem, just sell your Bitcoin. After all, its just this shady crypto currency which is mainly used for money laundering and other dirty stuff.
But no, you are an idealist – and you have also become greedy. What goes up from 1 USD to 31 USD in just a few months can also go up to 100 USD. This would mean an even nicer car, a bigger holiday, who knows what else. So you HODL.

By December 2011 the value of you bitcoin would have dropped to 2000 USD. No car, no expensive holiday. Ok, you are still up 100%, but this is not how people are. It is proven that for most people lost money creates about 2x the pain compared to the pleasure of winning the same amount of money. So you hate yourself for not selling, but if you have not sold by now you will most likely continue to HODL – because a realized loss feels much worse than an unrealised one.
Things start to get better again. The price starts to rise again and an after a year’s time a price of 13 USD is reached again. Still, you are down almost 60% from the high, but it feels better now. You feel smart that you have not panicked during the great crash. But at the back of your mind you tell yourself: This is not going to happen to me again.
Suddenly things explode: By April 2013 the bitcoin price reaches 266 USD – your investment is now worth more than a quarter of a million dollars. Well – if you continued to hold onto your Bitcoins. Chances are however that once you reached these goddammit 31 Euros again that you would have sold. But no you are a HODLer, so you kept your precious Bitcoins. Suddenly, you own an amount of money that could really make a big difference for your life. Pay down the remaining debt on your house – no problem thanks to your Bitcoin. Pay the tuition fee for your kids that want to go to college? No problem thanks to your Bitcoin. But no, you keep HODLing.
June 2013: Price is down to 70 USD – still enough money to pay down parts of your house debt – and had you not told yourself not to let another crash with you invested happen again? Chances are good that you will sell, but no, you continue to HODL.

This turns out to be a great decision. In November 2013 you are a millionaire, with the Bitcoin price cracking through the 1000 USD barrier. You might be able to stop working now, quit your job and go into early retirement. Tell your boss what you really think about him. After all, you got most of your net worth now in this shady crypto currency which was worth almost nothing just two years ago. But no, you are not getting nervous – you are HODLing.
Dull times are following. The prices continue to go down, and down and down. By March 2015 you have reached 200 USD again. You still own a sizable investment but it feels like shit. You can your neighbors laughing how stupid you were not to sell when you were a millionaire. You wish you had never told anybody about your Bitcoin. But you continue to hold.

Prices start to recover again – but it takes until April 2017 before you reach your net worth again. Your second chance to cash in and become a millionaire. And two years less to bridge before retirement age is reached. Go tell you neighbours how stupid they were to laugh at you instead of buying some bitcoins. But no, you keep on HODLing.
And again, the price explodes. By December 2017 the price of Bitcoin reaches almost 20 million US dollars. You are now a very wealthy man – but chance are that you have sold somewhere on the way up. But no, you did not. Freaking rich you are. For sure you would never have to work again if you sold now. Buy this nice villa in the South of France? Why not, thanks to your Bitcoin. But no, you keep on HODLing.

April 2018 – price is down to 6,800 USD. You still own more than 6 million US dollars, but freaking rich is history. You could still stop working for ever, but your buffer is shrinking everyday. But you keep on HODLing.
If you are honest to yourself, you will probably realize that you need to be a psychopath to become freaking rich by investing in crypto currencies.

Would you rather be a rich psychopath or a normal person?
I know what I would choose…