Crypto Winter 2022 Cost Bitcoin Holders More Than Cash

For George, apologizing to me wasn’t the hardest part. He’d persuaded his Chinese immigrant parents to refinance their mortgage and lend him $50,000 to invest in Bitcoin. He stored the funds on Celsius, a sort of crypto bank where they could accrue interest. The company collapsed into bankruptcy, and now the money was frozen, much of it likely lost. “I said, ‘I’m really sorry, I’m deeply ashamed, and I will commit ritual seppuku if you demand it,’?” he says. They didn’t, but he said he plans to pay them back when he can.

It seemed that George, like a lot of us who got caught up in crypto, was experiencing not just a financial loss but a kind of financial grief—a tangle of guilt, second-guessing and that awful feeling of having fallen for something. Bitcoin’s price has bounced back some since we spoke, but that’s little comfort if you’ve had your money stuck on a janky platform such as Celsius, or lost funds on Sam Bankman-Fried’s allegedly fraudulent FTX exchange, or held one of the now-worthless “altcoins” that popped up like mushrooms in a big rain during the pandemic trading boom. For many, crypto had become an identity, a way to feel smart and subversive and on the cutting edge of a new technology. What happens to that self-image when its foundation erodes? When instead of being someone’s savvy son or daughter, you are the sheepish adult child who has to explain where the family savings went?…

Source: Crypto Winter 2022 Cost Bitcoin Holders More Than Cash