Lost money through Bitconnect scam - learned my lesson

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Just_For_Jenna
Posts: 48
Joined: Sat Aug 31, 2013 5:52 am

Re: Lost money through Bitconnect scam - learned my lesson

Post by Just_For_Jenna » Sat Jan 20, 2018 1:50 pm

The lesson isn’t specifically scams, or crypto, it’s stay the course - especially when there is any noise. I’ve done well up until this mistake and had my first major test, and I failed.

Literally the only thing I can do about it now is to learn from it and ensure it doesn’t happen again. The folks I know who also got scammed still think it could bounce back. Or they can get it back through a lawsuit. I know it’s gone. And I’ve already moved on.

mrtiger
Posts: 22
Joined: Sun Nov 13, 2016 9:35 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by mrtiger » Sat Jan 20, 2018 2:04 pm

I will be honestly harsh with you! You made a brutal mistake by not doing your research.
Bitconnect was a ponzi scheme and their website clearly described that... whenever you looked people were writing to stay away since their "business" approach is not sustaining. I'm sorry that you have lost the money but I will bet that there will be more people who will loose it all just because they had a hunch. There are few great crypto currencies out there that will stick around, however there is a bunch that is just trying to scamp people out of their money.

User avatar
Smorgasbord
Posts: 347
Joined: Fri Jun 10, 2016 8:12 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by Smorgasbord » Sat Jan 20, 2018 2:12 pm

Tuition at the school of hard knocks is pricey, but the lessons are not usually forgotten. My dumb move was investing in a startup biotech company while in grad school because the science seemed good. Factoring in the gains in the markets since then, I'm not sure if my stupid would have been more or less costly than your stupid, but it would have been close. :oops:

Grt2bOutdoors
Posts: 18842
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Lost money through Bitconnect scam - learned my lesson

Post by Grt2bOutdoors » Sat Jan 20, 2018 2:27 pm

Just_For_Jenna wrote:
Sat Jan 20, 2018 12:20 pm
Thank you for all of the responses including those who shared their similar stories from the dot com era.

I’m done with crypto. I had a very bad 15 day “affair” from my Boglehead lifestyle and it cost me $30k.

I will make sure to turn this into a positive and never let this happen again.

It could have been much, much worse and I am thankful that it wasn’t.

Eyes on the future.
The next time, there will be a next time because you saw everyone around you heeing and hawing about their winnings and you wanted in - do this first: go to vanguard college planner, put in your child’s age, the amount you were planning to speculate with, time to college, amount it calculates you will have. That is what you could lose. After you do that, you’ll think long and hard before you risk that kind of capital again.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

lolbatross
Posts: 128
Joined: Thu Feb 20, 2014 10:36 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by lolbatross » Sat Jan 20, 2018 3:03 pm

Grt2bOutdoors wrote:
Sat Jan 20, 2018 2:27 pm
Just_For_Jenna wrote:
Sat Jan 20, 2018 12:20 pm
Thank you for all of the responses including those who shared their similar stories from the dot com era.

I’m done with crypto. I had a very bad 15 day “affair” from my Boglehead lifestyle and it cost me $30k.

I will make sure to turn this into a positive and never let this happen again.

It could have been much, much worse and I am thankful that it wasn’t.

Eyes on the future.
The next time, there will be a next time because you saw everyone around you heeing and hawing about their winnings and you wanted in - do this first: go to vanguard college planner, put in your child’s age, the amount you were planning to speculate with, time to college, amount it calculates you will have. That is what you could lose. After you do that, you’ll think long and hard before you risk that kind of capital again.
This is a great post. Looking at opportunity cost helps me consistently invest rather than lifestyle inflate. That 30k car I bought in late 2008 I would have over again. My 100k+ car that wasn’t nearly that nice!

itstoomuch
Posts: 5343
Joined: Mon Dec 15, 2014 12:17 pm
Location: midValley OR

Re: Lost money through Bitconnect scam - learned my lesson

Post by itstoomuch » Sat Jan 20, 2018 3:19 pm

OP, the normal procedure is to buy low and sell high and stay-in-the-game.
Since you played with "Play" money, I wouldn't distress too much about it. I call my Discretionary acct losses, as "backend exit Fee" for lessons learned. If you reached a point where "itstoomuch" then you really need to rethink how you think about money and its equivalences.
If you want to gamble, then try farming :twisted: .
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo

User avatar
BTDT
Posts: 783
Joined: Sun Aug 29, 2010 10:40 am
Location: Grand Lake OK

Re: Lost money through Bitconnect scam - learned my lesson

Post by BTDT » Sat Jan 20, 2018 4:15 pm

I always feel like such a loser because my friends always tell me how much they win in Vegas while I refuse to play. I still can't figure out how those casinos survive if everybody wins :oops:

Oh well..... I'll just stick with Taylor Larimore's guidance and my three fund portfolio. Pretty boring, but at age 71, I really sleep well at night knowing I have all the money I'll ever need :beer
If past history was all that is needed to play the game of money, the richest people would be librarians.

User avatar
alpenglow
Posts: 640
Joined: Tue May 31, 2011 12:02 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by alpenglow » Sat Jan 20, 2018 4:26 pm

Thanks for sharing your story. I hope posting it was somewhat therapeutic. Let's face it, losing money sucks. I was a professional day trader when I was younger. Yes, I know what people are thinking. I was actually good at what I did and at one point made money every day for a full year. I was highly disciplined and stuck with what worked. Without getting into details, one day I did something which in hindsight was very stupid. I lost a lot of money. It stung badly. How could I have done something like that!? The good news is that tomorrow is a new day. You've obviously learned from your mistake. We all make them and it's ok as long as we learn from them. $30k isn't chump-change, but for the typical boglehead, this isn't going to end you either. Return to your good practices and don't let one mistake overshadow all of the positive things you're doing.

User avatar
oldcomputerguy
Posts: 3127
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods

Re: Lost money through Bitconnect scam - learned my lesson

Post by oldcomputerguy » Sat Jan 20, 2018 4:31 pm

BTDT wrote:
Sat Jan 20, 2018 4:15 pm
I always feel like such a loser because my friends always tell me how much they win in Vegas while I refuse to play. I still can't figure out how those casinos survive if everybody wins :oops:
I can tell you from personal experience... not everybody wins.
:(
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

rudeboy
Posts: 98
Joined: Thu Oct 05, 2017 9:21 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by rudeboy » Sat Jan 20, 2018 5:01 pm

Dude, I feel for you. Thanks for sharing.

For real, though, people lose 30k all. the. time. and don't even think twice about it. Buying and sell a $300,000 house within a few years is about 30k right there in finder's fees, closing costs, and all those other BS charges. A brand new luxury car might depreciate 10-20k the second it leaves the lot.

Just think about how much in compound interest you would have lost out on over your lifetime if you had started indexing a few years later than you did.

You'll be a-ok :sharebeer

DavidRoseMountain
Posts: 126
Joined: Sun Nov 30, 2014 3:27 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by DavidRoseMountain » Sat Jan 20, 2018 5:02 pm

Like the other 52 year olds who posted already, I was 34 years old during the 1999-2000 internet stock craze. I invested in some of those internet stocks rather than index funds, and lost money. Fortunately, most of my investing was in the SP 500 index fund.

mffl
Posts: 76
Joined: Wed Dec 06, 2017 7:25 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by mffl » Sat Jan 20, 2018 6:06 pm

Just_For_Jenna wrote:
Sat Jan 20, 2018 11:07 am
I’m ashamed and embarrassed. I (thought I) knew better.

This was money from vesting stock. I knew enough to not hold individual stock especially from the company that employs me. I normally add it to my Vanguard taxable account according to my asset allocation plan.

I have more stock vesting. I have a high income. I will make it back. Many lost their life savings. Thankfully this was money I could afford to lose.

It still stings. A lot.
Yeah. Agree with others that this will be a lesson well learned as long as you remember it, and although the Boglehead strategy is simple, I think even most of us adherents need support and reminders of why we do what we do.

I "invested" in Washington Mutual on September 25, 2008, at about 3:55pm Eastern. I'd been busy at work, and though I intended to make the purchase all day (come on, the government won't let them go bankrupt!), I nearly forgot, and then rushed to put in my order minutes before market close. Obviously the collapse of WaMu was all that was on the radio on my way home from work, and by the time my commute was over, WaMu stock was down first 25%, then 50%, then 75% in after hours trading. Obviously it ended up being basically worthless, and I keep my rump of the stock of the holding company I ended up with after the dust settled, with its 98.11% loss, as a reminder not to pull a stunt like that again. It was a decent chunk of money for me at the time, though not devastating. It was the embarrassment that stung the most. (That, and at some point in the legal proceedings, I could have sold my stock for only about a 33% loss, when for a brief moment WaMu looked like it might win its lawsuit, but I wasn't paying attention anymore at that time...)

That lesson was one of the critical foundational blocks in my belief in a Boglehead style strategy, which I lucked into comprehending right around the bottom of the 08-09 crash. Of course, I held strong for about 4 years and in a momentary lapse of judgement, I couldn't resist the Facebook IPO in 2012 (passive index investing is great and all, but... tech IPO's, right? I'd already missed out on Amazon, Netflix, Google...). Of course, I bought in at $50/share, and FB promptly went down to $17 by the end of the day, basically a 67% loss. I held until some point a while later when FB stock finally crept back up to $50 a year and a half later and sold immediately. It kept going on up and up and up after that, and friends said don't you regret selling when you did? Not a bit, I'm done riding that individual stock horse.

So, don't feel bad about your moment of weakness, it can happen occasionally to those who are otherwise absolutely convinced of passive indexing. Just remember this feeling and don't do it again. :)

cherijoh
Posts: 4857
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: Lost money through Bitconnect scam - learned my lesson

Post by cherijoh » Sat Jan 20, 2018 6:56 pm

theplayer11 wrote:
Sat Jan 20, 2018 11:38 am
I was your age during the dot com bubble. I had no idea about stocks and investing except that during that time it seemed everything went up. I was up about $300K and lost it all, ended up losing about $150K of my own money. Every year at tax time I'm still reminded with my $3000 capital loss deduction.
I remember the stock symbols well..CYBR, IFLY.....and some internet gaming company called Starnet.
From that point on it was all mutual funds, then index funds once I found this site. I sleep well at night now.

An example: I remember buying a stock on a Friday at $8 and it opened Monday at $16. Crazy times.
I never took a flyer on any of the individual tech stocks in that period, but I did have money invested in an actively-managed mutual fund that invested heavily in tech stocks and was also invested in an "aggressive growth" fund in my 401k. I rebalanced out of the 401k fund several times in a short period of time while tech stocks were still on the rise. I still recall that the fund went up 35% in one month and was up 75 or 80% over the course of about 6 months! Many of my work colleagues decided to go "all in" on that fund after the meteoric rise - clearly a case of FOMO. At least I avoided that mistake. Unfortunately, I didn't want to pay capital gains tax on the fund in taxable so I didn't sell that fund and watched my capital gains melt away when the tech bubble burst. :oops:

Malinois000
Posts: 124
Joined: Sun Feb 26, 2017 6:08 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by Malinois000 » Sat Jan 20, 2018 7:38 pm

RRAAYY3 wrote:
Sat Jan 20, 2018 11:57 am
Remember this lesson, so you don’t enter another venture trying to “win back” your mistake and ending up in a deeper hole

I despise Bitcoin and can’t wait for it to just go away. If you bought it in 08/09, sell this BS ASAP and consider yourself lucky

Blockchain technology is valuable - Bitcoin is a FOMO driven nothing. If you’re not a sci-fi Villain or drug dealer, it should be irrelevant to you.

My friends husband “mines for Bitcoin” his electric bill runs more than he’ll likely earn from this nonsense .. it’s almost funny
There is no blockchain without bitcoin. Without Bitcoin, it is just another database.

User avatar
in_reality
Posts: 4529
Joined: Fri Jul 12, 2013 6:13 am

Re: Lost money through Bitconnect scam - learned my lesson

Post by in_reality » Sat Jan 20, 2018 7:47 pm

Malinois000 wrote:
Sat Jan 20, 2018 7:38 pm
RRAAYY3 wrote:
Sat Jan 20, 2018 11:57 am
Remember this lesson, so you don’t enter another venture trying to “win back” your mistake and ending up in a deeper hole

I despise Bitcoin and can’t wait for it to just go away. If you bought it in 08/09, sell this BS ASAP and consider yourself lucky

Blockchain technology is valuable - Bitcoin is a FOMO driven nothing. If you’re not a sci-fi Villain or drug dealer, it should be irrelevant to you.

My friends husband “mines for Bitcoin” his electric bill runs more than he’ll likely earn from this nonsense .. it’s almost funny
There is no blockchain without bitcoin. Without Bitcoin, it is just another database.
Huh?

If Mastercard, yes Mastercard, can handle payments via a Blockchain without involving bitcoin, why can’t everyone else?

They started last Friday I believe.

Of course anyone owning bitcoins is not going to admit that, but the truth is what it is.

hilink73
Posts: 274
Joined: Tue Sep 20, 2016 3:29 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by hilink73 » Sat Jan 20, 2018 8:08 pm

mrtiger wrote:
Sat Jan 20, 2018 2:04 pm
I will be honestly harsh with you! You made a brutal mistake by not doing your research.
Bitconnect was a ponzi scheme and their website clearly described that... whenever you looked people were writing to stay away since their "business" approach is not sustaining. I'm sorry that you have lost the money but I will bet that there will be more people who will loose it all just because they had a hunch. There are few great crypto currencies out there that will stick around, however there is a bunch that is just trying to scamp people out of their money.
At least he's "healed" from "crypto" now. :(

I think this is where "do not invest in something you don't understand" comes in, right?
It was absolutely clear that Bitconnect is a scam. The Internet was full of debunking it.

Sadly, from his bad experience, he's done with crypto now.
Although there are many promising projects which could be invested in. Especially at such a young age.
Does not have to be all in. A few grand on a few projects could turn out rewarding.
But I know this opinion has a minority here.

Sorry for your loss, though.
I've lost money when I was younger, too. DIfferent business, similar pitch (through colleagues).

hilink73
Posts: 274
Joined: Tue Sep 20, 2016 3:29 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by hilink73 » Sat Jan 20, 2018 8:12 pm

Malinois000 wrote:
Sat Jan 20, 2018 7:38 pm
RRAAYY3 wrote:
Sat Jan 20, 2018 11:57 am
Remember this lesson, so you don’t enter another venture trying to “win back” your mistake and ending up in a deeper hole

I despise Bitcoin and can’t wait for it to just go away. If you bought it in 08/09, sell this BS ASAP and consider yourself lucky

Blockchain technology is valuable - Bitcoin is a FOMO driven nothing. If you’re not a sci-fi Villain or drug dealer, it should be irrelevant to you.

My friends husband “mines for Bitcoin” his electric bill runs more than he’ll likely earn from this nonsense .. it’s almost funny
There is no blockchain without bitcoin. Without Bitcoin, it is just another database.

What are you taking?

Malinois000
Posts: 124
Joined: Sun Feb 26, 2017 6:08 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by Malinois000 » Sat Jan 20, 2018 8:26 pm

in_reality wrote:
Sat Jan 20, 2018 7:47 pm
Malinois000 wrote:
Sat Jan 20, 2018 7:38 pm
RRAAYY3 wrote:
Sat Jan 20, 2018 11:57 am
Remember this lesson, so you don’t enter another venture trying to “win back” your mistake and ending up in a deeper hole

I despise Bitcoin and can’t wait for it to just go away. If you bought it in 08/09, sell this BS ASAP and consider yourself lucky

Blockchain technology is valuable - Bitcoin is a FOMO driven nothing. If you’re not a sci-fi Villain or drug dealer, it should be irrelevant to you.

My friends husband “mines for Bitcoin” his electric bill runs more than he’ll likely earn from this nonsense .. it’s almost funny
There is no blockchain without bitcoin. Without Bitcoin, it is just another database.
Huh?

If Mastercard, yes Mastercard, can handle payments via a Blockchain without involving bitcoin, why can’t everyone else?

They started last Friday I believe.

Of course anyone owning bitcoins is not going to admit that, but the truth is what it is.
It's centralized...a blockchain controlled entirely by the corp issuing it. What's unique about Bitcoin and the blockchain tech is that it's decentralized. There are problems with decentralization but that's what's different. When you hear banks and others' support blockchain but not Bitcoin it is clearly self interest and certainly not the same as true blockchain.

User avatar
LadyGeek
Site Admin
Posts: 46756
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Lost money through Bitconnect scam - learned my lesson

Post by LadyGeek » Sat Jan 20, 2018 8:41 pm

A few posts on Page 1 of this thread have been removed. As a reminder, please keep the language "family friendly" - things you can say in front of the little ones. Also, please state your concerns in a civil, respectful manner. See: General Etiquette
We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.

...At all times we must conduct ourselves in a respectful manner to other posters.

avoid profanities, obscenities, lewd and otherwise offensive words and remarks
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

socraticbogler
Posts: 40
Joined: Wed Nov 21, 2012 10:37 am

Re: Lost money through Bitconnect scam - learned my lesson

Post by socraticbogler » Sat Jan 20, 2018 9:31 pm

Hey - don't be too hard on yourself. You're 34, you have a lot of time to build savings and wealth. I've lost money on emotional investments, too, as have most of the people on this forum. It's all good tuition to remind us to be skeptical about this sort of thing. But in the grand scheme of things, this is a pretty mild mistake... my advice is forgive yourself and move on.

jadedfalcons
Posts: 170
Joined: Sat Feb 04, 2017 8:55 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by jadedfalcons » Sat Jan 20, 2018 10:09 pm

arcticpineapplecorp. wrote:
Sat Jan 20, 2018 10:46 am
i'm sorry you didn't read my post from December 17, 2017 before putting money into bitconnect:

viewtopic.php?t=234790
Your previous post was the first thing I thought of when I started reading this thread.

Hope a bunch of your 'friends' didn't get burned too bad if they got roped in.

User avatar
arcticpineapplecorp.
Posts: 3033
Joined: Tue Mar 06, 2012 9:22 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by arcticpineapplecorp. » Sat Jan 20, 2018 10:46 pm

Valuethinker wrote:
Sat Jan 20, 2018 1:04 pm
arcticpineapplecorp. wrote:
Sat Jan 20, 2018 11:30 am

Everyone knows something is a scam in hindsight. Quite frankly it doesn't really matter if the outcome is the same. In 1998 you might have admitted putting money into Enron was speculating (though people thought they were "investing" in Enron). By 2002 everyone knows Enron was a criminal scam. Semantics, really. T
Enron was the world's most admired company - -several years running.

Out of 32 Wall Street analysts, 30 had it as a buy. There were also credit analysts who rated it investment grade-- and credit investors don't get the upside, only the downside if it goes wrong, so they are paid to be cautious by nature.

There were a lot of people whose job it was to call Enron, who got it wrong. Plus all the acolades from leading consultancies, business school cases, sign off on the accounts by a prestigious Board of Directors plus the world's 5th largest accounting firm.

Enron then became the largest bankruptcy in corporate history to that point. Collapsing in only a very few months. Enron was fraudulent-- there were only a couple of signs that it was fraudulent (one line in the accounts, plus a long term failure of cash flow to meet earnings).

Enron was fraud. From the outside, if the accounts are rigged, fraud is quite difficult to detect.

If your point is that single stock risk is speculative, and a stock can go to zero, then I agree.

But investing in Enron shares at the time was not equivalent to buying crypto currencies, where lots of reputable analysts and investors have been saying "bubble" and "potential scam" for months or even years.
yes, that was the point I was making (in red above). Diversification is the antidote to speculation...and being scammed.
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

sambb
Posts: 2073
Joined: Sun Mar 10, 2013 3:31 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by sambb » Sat Jan 20, 2018 10:48 pm

scams happen everywhere, even the s&p (enron)
be careful

User avatar
arcticpineapplecorp.
Posts: 3033
Joined: Tue Mar 06, 2012 9:22 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by arcticpineapplecorp. » Sat Jan 20, 2018 10:49 pm

jadedfalcons wrote:
Sat Jan 20, 2018 10:09 pm
arcticpineapplecorp. wrote:
Sat Jan 20, 2018 10:46 am
i'm sorry you didn't read my post from December 17, 2017 before putting money into bitconnect:

viewtopic.php?t=234790
Your previous post was the first thing I thought of when I started reading this thread.

Hope a bunch of your 'friends' didn't get burned too bad if they got roped in.
Yeah me too. I assume the host of the party got burned by it but I'm not sure who else from the neighborhood got roped in. Often people don't discuss these kinds of things with others out of embarassment, shame, etc. So the OP is commended for sharing (if only in an anonymous forum) his/her downfall in this one instance. Hopefully others who got burned will learn similar lessons.
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

User avatar
arcticpineapplecorp.
Posts: 3033
Joined: Tue Mar 06, 2012 9:22 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by arcticpineapplecorp. » Sat Jan 20, 2018 10:50 pm

sambb wrote:
Sat Jan 20, 2018 10:48 pm
scams happen everywhere, even the s&p (enron)
be careful
But Enron was a small part of the S&P500 so even though one company went out of business the other 500+ did not. That's the protective benefit of diversification. Not to mention if you have international investments and bonds, you've got even less of a loss as a result of an Enron.
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

DEZ1
Posts: 74
Joined: Fri Jul 10, 2015 2:00 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by DEZ1 » Sat Jan 20, 2018 11:20 pm

Thanks for sharing. We only hear about the bitcoin millionaires!

Finridge
Posts: 406
Joined: Mon May 16, 2011 7:27 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by Finridge » Sun Jan 21, 2018 12:19 am

Just_For_Jenna wrote:
Sat Jan 20, 2018 10:25 am
I’ve been living the Boglehead life for the past 6-7 years. Three fund portfolio and have stuck to the plan. I’ve also made a lot of money so my net worth has risen substantially from income and investments. More money just meant more savings and I’ve also been paying down my mortgage.

Until January 1st of this year.

I’ve been watching the crypto game from the sidelines for some time. I’ve seen Bitcoin go up and down, and I looked at it like I look at individual stocks - is not for me, index funds are my strategy. However I’ve watched some coworkers, all of whom I respect very much, talk about and show their investments in this Bitconnect platform sky rocket. None of them were recruiting me. However I finally decided to give it a shot. I took some money, above and beyond my normal savings and investment goals, and bought into the platform. It paid a daily interest rate based on the “bitcoin trading bots and the volatility of bitcoin”. I saw in the first 10 days how quickly I was earning money, so I bought in more. All in all, I dumped $30k into this platform.

This week the platform abruptly shut down. I’ll spare their explanation of what happened because it’s all lies and I’ve realized it’s a scam. Basically they closed the lending platform, converted all of our outstanding loans to their Bitconnect coin at what looks like a good exhbage rate (would be no loss if the coin actually held the value they “converted” it to), but then that Bitconnect coin dropped from $363 to $5. Now it’s around $20. The people who run the platform are on the run. Class action lawsuits are already starting. There are legal battles coming.

But I know it’s gone. $30k down the toilet.

I’ve learned my lesson. It was an expensive lesson. I need to stick to my plan through thick and thin.

I don’t know why I’m sharing my story. I guess to warn/teach others. I guess it also helps to get it out and talk about it.
Thank you for sharing this story. People don't often like to talk about their mistakes and losses, and that perpetuates some of the myths. I think of all the people I know who visit Vegas. Just listening to them, you'd think gambling at Vegas is all upside, because they'll tell you about any jackpots they won, but not mention all the money the lost...

Osprey
Posts: 31
Joined: Sat May 27, 2017 3:04 am
Location: New England

Re: Lost money through Bitconnect scam - learned my lesson

Post by Osprey » Sun Jan 21, 2018 1:45 am

Thanks for sharing your painful lesson. Sorry you had to experience it.

physiorol
Posts: 161
Joined: Sun Mar 09, 2014 1:52 am

Re: Lost money through Bitconnect scam - learned my lesson

Post by physiorol » Sun Jan 21, 2018 2:05 am

There is something to be said for having the courage to take action, even if in hindsight the action resulted in an undesirable but not future-ending outcome. You took a calculated risk with limited information...pretty much how life goes.

Big difference with investing is that you can quantify your errors very easily. Which is unlike most of our other decisions.

itstoomuch
Posts: 5343
Joined: Mon Dec 15, 2014 12:17 pm
Location: midValley OR

Re: Lost money through Bitconnect scam - learned my lesson

Post by itstoomuch » Sun Jan 21, 2018 2:23 am

My 2nd cousin invested in Bitcoin early on. He's still ahead. :mrgreen:
What is one person's scam is another person's gold mine. Cousin has a miner unit too. :oops:
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo

Just_For_Jenna
Posts: 48
Joined: Sat Aug 31, 2013 5:52 am

Re: Lost money through Bitconnect scam - learned my lesson

Post by Just_For_Jenna » Sun Jan 21, 2018 6:47 am

I’m sure money can be made in crypto. It goes against everything I learned in this wonderful forum. I’m personally done with it. I’m not shunning it for everyone else - I’m sure it may have its place for some.

I love having my simple investment strategy with an eye on the long term future. I do a couple of re allocations per year and I track my net worth once or twice a year.

With my 15 day crypto experience, I was checking multiple times per day. And to be honest, even though I loved the daily “interest payments”, I hated thinking so much about money and investing.

I’m excited to get back to what has worked for essentially my whole investing career, minus a painful lesson. It’s worked for me for a lot of reasons, I’ve been successful with it during this nice run the past 8 years, it’s worked for me for not causing daily anxiety about the ups and downs of the market (I never watch TV or read about the market), and I love everything about the set it and forget it methodology. I don’t care about what the marking is doing today, or this year, I trust that when I need this money in 30 years I will have done well, and I will not have stressed much about this in the process.

Minus this one black eye, which I will heal and turn into a powerful learning experience.

User avatar
Toons
Posts: 12869
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Lost money through Bitconnect scam - learned my lesson

Post by Toons » Sun Jan 21, 2018 8:00 am

It is "Money".
If it sounds too good to be true,,,,,,,,,,
Life Lessons
Part of The Journey.
Keep Smilin
:happy :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

cherijoh
Posts: 4857
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: Lost money through Bitconnect scam - learned my lesson

Post by cherijoh » Sun Jan 21, 2018 8:04 am

arcticpineapplecorp. wrote:
Sat Jan 20, 2018 10:50 pm
sambb wrote:
Sat Jan 20, 2018 10:48 pm
scams happen everywhere, even the s&p (enron)
be careful
But Enron was a small part of the S&P500 so even though one company went out of business the other 500+ did not. That's the protective benefit of diversification. Not to mention if you have international investments and bonds, you've got even less of a loss as a result of an Enron.
Agreed. But I interpreted the comment differently. If I heard about an individual stock being a scam and going to zero, I would assume that it was a pump-and-dump penny stock - NOT one of the largest 500 companies in the country.

User avatar
oldcomputerguy
Posts: 3127
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods

Re: Lost money through Bitconnect scam - learned my lesson

Post by oldcomputerguy » Sun Jan 21, 2018 8:07 am

Malinois000 wrote:
Sat Jan 20, 2018 7:38 pm
There is no blockchain without bitcoin. Without Bitcoin, it is just another database.
Then I must ask, if blockchain's only reason for existence is Bitcoin, then why is blockchain such a big deal? If its only value is to support a speculative, pyramid "investment", does it really have the value everyone seems to attribute to it? :|
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

Tanelorn
Posts: 1502
Joined: Thu May 01, 2014 9:35 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by Tanelorn » Sun Jan 21, 2018 9:56 am

"Nothing so undermines your financial judgement as the sight of your neighbour getting rich.” – John Pierpont Morgan

User avatar
LadyGeek
Site Admin
Posts: 46756
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Lost money through Bitconnect scam - learned my lesson

Post by LadyGeek » Sun Jan 21, 2018 10:11 am

I removed an off-topic post and reply related to the enabling of crime via blockchain technology / Bitcoin. The discussion was getting derailed.

Please stay on-topic, which is the investing aspect.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

sambb
Posts: 2073
Joined: Sun Mar 10, 2013 3:31 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by sambb » Sun Jan 21, 2018 10:14 am

cherijoh wrote:
Sun Jan 21, 2018 8:04 am
arcticpineapplecorp. wrote:
Sat Jan 20, 2018 10:50 pm
sambb wrote:
Sat Jan 20, 2018 10:48 pm
scams happen everywhere, even the s&p (enron)
be careful
But Enron was a small part of the S&P500 so even though one company went out of business the other 500+ did not. That's the protective benefit of diversification. Not to mention if you have international investments and bonds, you've got even less of a loss as a result of an Enron.
Agreed. But I interpreted the comment differently. If I heard about an individual stock being a scam and going to zero, I would assume that it was a pump-and-dump penny stock - NOT one of the largest 500 companies in the country.
In relation to the OP, it is not unreasonable to lose some $ in risk capital investments, whether it is a house, a collectible, a stock, or crypto. The analogy to enron, is that you can pick an s&p 500 stock and also lose everything. I think the bottom line is to have a core of diversified investments, and if you want to have some high risk capital, then go for it. But the idea that an individual S&P 500 stock can also be subject to fraud and go to zero dollars - some dont believe that can happen. It can, and it has happened. I'd rather have some bitcoin than some enron stock certificates.

lolbatross
Posts: 128
Joined: Thu Feb 20, 2014 10:36 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by lolbatross » Sun Jan 21, 2018 10:26 am

oldcomputerguy wrote:
Sun Jan 21, 2018 8:07 am
Malinois000 wrote:
Sat Jan 20, 2018 7:38 pm
There is no blockchain without bitcoin. Without Bitcoin, it is just another database.
Then I must ask, if blockchain's only reason for existence is Bitcoin, then why is blockchain such a big deal? If its only value is to support a speculative, pyramid "investment", does it really have the value everyone seems to attribute to it? :|
Blockchain was invented to solve the double spending problem and thus was part of the birth of bitcoin. Unfortunately after bitcoin has come 1000s of altcoins and other degrees of scams including Bitconnect.

Make no mistake there is mania around the Blockchain technology as much as there is about crypto currencies. A decentralized cluncky database using Blockchain technology does not make sense for tons of applications but yet people go crazy about it. For crypto currencies it is a necessary evil.

If one is going to invest or speculate in this space they need to educate themselves much more than one has to for passive index investing. This is because there are tons of scammers out there as well as other non traditional risks - cost of power, centralization of hash power, hard forks etc. Consensus for hard and soft forks can cause unwanted effects to your investment.

As others have said crypto does not generally fin into the BH philosophy. I’m not sure fancy watches or teslas do either, but then Again people arent fooling themselves and thinking of those things are sound investments similar to an index fund.

Disclosure I am long btc for <1% portfolio and have zero interest in any altcoins.

User avatar
arcticpineapplecorp.
Posts: 3033
Joined: Tue Mar 06, 2012 9:22 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by arcticpineapplecorp. » Sun Jan 21, 2018 11:10 am

sambb wrote:
Sun Jan 21, 2018 10:14 am
cherijoh wrote:
Sun Jan 21, 2018 8:04 am
arcticpineapplecorp. wrote:
Sat Jan 20, 2018 10:50 pm
sambb wrote:
Sat Jan 20, 2018 10:48 pm
scams happen everywhere, even the s&p (enron)
be careful
But Enron was a small part of the S&P500 so even though one company went out of business the other 500+ did not. That's the protective benefit of diversification. Not to mention if you have international investments and bonds, you've got even less of a loss as a result of an Enron.
Agreed. But I interpreted the comment differently. If I heard about an individual stock being a scam and going to zero, I would assume that it was a pump-and-dump penny stock - NOT one of the largest 500 companies in the country.
In relation to the OP, it is not unreasonable to lose some $ in risk capital investments, whether it is a house, a collectible, a stock, or crypto. The analogy to enron, is that you can pick an s&p 500 stock and also lose everything. I think the bottom line is to have a core of diversified investments, and if you want to have some high risk capital, then go for it. But the idea that an individual S&P 500 stock can also be subject to fraud and go to zero dollars - some dont believe that can happen. It can, and it has happened. I'd rather have some bitcoin than some enron stock certificates.
Man I thought this was great right until the last sentence! I think it kind of undermined the previous point you were making. Here's why:

What if bitcoin goes to $0? Would you still rather have bitcoin than enron? No. Then you wouldn't feel any differently about bitcoin or enron. I'm not saying bitcoin is a fraud, but it's an undiversified risk just as a single stock is (enron or any other, non scam stock that happens to go to $0). The reason you'd rather have bitcoin than enron right now is because bitcoin is still worth something while Enron is not. But to say that an S&P500 company can be a fraud and/or go to zero "can and...has happened" but not acknowlege that bitcoin can also go to zero is a mistake I believe. I'm not saying it's going to go to zero. I'm just saying we have to acknowlege that anything can go to zero not just fraudulent companies but really anything. All it takes is for a company's products to fall out of favor with the public and the decline begins. Or for people to abandon bitcoin for some other faster, better coin and the decline begins.

Which is why we diversify and don't put our money into any individual issues (be they individual stocks, currencies or whatever).
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

LarryAllen
Posts: 1047
Joined: Fri Apr 22, 2016 9:41 am
Location: State of Confusion

Re: Lost money through Bitconnect scam - learned my lesson

Post by LarryAllen » Sun Jan 21, 2018 11:25 am

A great thread. Thank you for sharing. We all need to be reminded of stuff like this so we stay the course. Good luck going forward.

RRAAYY3
Posts: 926
Joined: Thu Jan 17, 2013 12:32 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by RRAAYY3 » Sun Jan 21, 2018 11:27 am

Malinois000 wrote:
Sat Jan 20, 2018 7:38 pm
RRAAYY3 wrote:
Sat Jan 20, 2018 11:57 am
Remember this lesson, so you don’t enter another venture trying to “win back” your mistake and ending up in a deeper hole

I despise Bitcoin and can’t wait for it to just go away. If you bought it in 08/09, sell this BS ASAP and consider yourself lucky

Blockchain technology is valuable - Bitcoin is a FOMO driven nothing. If you’re not a sci-fi Villain or drug dealer, it should be irrelevant to you.

My friends husband “mines for Bitcoin” his electric bill runs more than he’ll likely earn from this nonsense .. it’s almost funny
There is no blockchain without bitcoin. Without Bitcoin, it is just another database.
There is no blockchain without bitcoin? News to me

RRAAYY3
Posts: 926
Joined: Thu Jan 17, 2013 12:32 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by RRAAYY3 » Sun Jan 21, 2018 11:34 am

Can someone pleass explain the appeal of Bitcoin to me?

I’ve watched documentaries, researched, spoke with people invested, “miners”, etc.

The more I learn, the less I understand why Bitcoin is even a thing. Why is this appealing? Other than people seemingly wanting to hope on a new trend - I just don’t get it, at all.

The people I know are invested quite frankly come off as if they wear tin foil hats while prepping there doomsday bunker in the backyard

Sockpuppet
Posts: 110
Joined: Mon Oct 23, 2017 9:06 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by Sockpuppet » Sun Jan 21, 2018 12:17 pm

RRAAYY3 wrote:
Sun Jan 21, 2018 11:34 am
Can someone pleass explain the appeal of Bitcoin to me?

I’ve watched documentaries, researched, spoke with people invested, “miners”, etc.

The more I learn, the less I understand why Bitcoin is even a thing. Why is this appealing? Other than people seemingly wanting to hope on a new trend - I just don’t get it, at all.

The people I know are invested quite frankly come off as if they wear tin foil hats while prepping there doomsday bunker in the backyard
1. It’s gone up 6000% over the last few years and past performance is a guarantee of future performance, right?

2. It’s handy if you’re a criminal or from a failed state where the currency is worthless.

3. Libertarians and anarchists like it because it’s decentralized.

4. And most importantly it’s up 6000% so there is no way you can lose.

RRAAYY3
Posts: 926
Joined: Thu Jan 17, 2013 12:32 pm

Re: Lost money through Bitconnect scam - learned my lesson

Post by RRAAYY3 » Sun Jan 21, 2018 12:32 pm

Sockpuppet wrote:
Sun Jan 21, 2018 12:17 pm
RRAAYY3 wrote:
Sun Jan 21, 2018 11:34 am
Can someone pleass explain the appeal of Bitcoin to me?

I’ve watched documentaries, researched, spoke with people invested, “miners”, etc.

The more I learn, the less I understand why Bitcoin is even a thing. Why is this appealing? Other than people seemingly wanting to hope on a new trend - I just don’t get it, at all.

The people I know are invested quite frankly come off as if they wear tin foil hats while prepping there doomsday bunker in the backyard
1. It’s gone up 6000% over the last few years and past performance is a guarantee of future performance, right?

2. It’s handy if you’re a criminal or from a failed state where the currency is worthless.

3. Libertarians and anarchists like it because it’s decentralized.

4. And most importantly it’s up 6000% so there is no way you can lose.
So pretty much what I thought. Tin foil, FOMO, get rich quick, all of stupidity’s greatest hits

User avatar
LadyGeek
Site Admin
Posts: 46756
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Lost money through Bitconnect scam - learned my lesson

Post by LadyGeek » Sun Jan 21, 2018 12:39 pm

This thread has run its course and is locked (topic exhausted, derailed).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

Locked