Who invested in bitcoins?

I remember a post metioning someone investing in bitcoins, and now its lost half its value?

 

http://bbs.barnsleyfc.org.uk/showthread.php?199926-Bitcoin

 

His two grand investment is still worth nearly 100k!

 

Is it even possible to cash-out? I know you can book a flight on Virgin Galactic, but can you really covert into 'real' money?

I can't believe that guy thought his £2,000 investment would soon be worth £20 MILLION! That just does not happen - what a fool!

 

Yes you can trade them on mtgox.com

 

2m not 20m . In fairness to him, I don't think you can call him a fool. Read a bit about crypto currencies it's an interesting area.

 

I hadn't previously looked at this - it is indeed an interesting idea.

Nevertheless, nothing grows forever - who bought into .com shares in 2001? I know I did, thinking the rapid early growth would just spiral into the realms of stratospheric, only for it to come crashing down and leave me (albeit relatively modestly) out of pocket. Your mate has already seen a 10000% growth in his investment value. To hold on for more may not be foolish but it is at best spectacularly brave and could yet come back to bite him on the backside.

That said, you never know. A mate of mine bought shares in PACE. He'd worked at Mion in Wombwell who made satellite receivers for PACE, who at the time were on the bones of their arse. He had seen Sky Digital technology (remember the quantum leap from Sky analogue? no EPG, no picture if it's raining etc) during the manufacturing push to build stocks of receivers in time for the launch. He figured Sky Digital was a sure fire winner and bought 20k in shares at 20p each. A year later he sold them for 80p a share and bought a four-bed detached outright. Mortgage free for life! I hadn't advised him (thank god) but I congratulated wholeheartedly and told him he'd done the right thing.

PACE shares peaked 15 months after that at 1317p each.

 

So, if my maths is right, he sold for £80,000 but if he'd waited another 15 months he could have sold for £1.3 million. How's his mood?

 

Your maths is correct and his mood last time we spoke of it (understandably we don't often) was surprisingly philosophical.

 

He quadrupled his money. He wouldn't have sold the day it peaked anyway, no one ever does, apart from liars and Mr X. So he would have never got the £1.3 million, but I guess it was steadily climbing up to that mark for a long time, which means he could have made a lot more than he did. However, he invested and he did make money. Who came out better in the deal, your mate whose money increased fourfold or the rest of us who didn't invest at all.