arrow-left-lightarrow-leftarrow-right-lightarrow-rightarrow-thin-left arrow-thin-right browser-search cup heart indicator laptop layers layout-4boxes layout-sideleft mail-heart mail map-pin mixer mouse nav paintbucket pencil-ruler phone picture play video

Bitcoin Trading

  • Filled Under: Pet Project, Past Startups

A world of digital currency that's standardized across the financial markets is an inevitability. One way to get used to the future of transactions is to practice using the digital currencies of today - as imperfect and volatile as many of them are.

My adventures with Bitcoin, Peercoin, Litecoin, and a host of other digital currencies are quite random. It began when I was introduced to Bitcoin by a friend at the University of Michigan. Initially, I thought it was stupid - destined to fail much like the golden standard did with fiat currency, and it was way to volatile. 

But, as Bitcoin dropped to around $60 in April 2013, I decided to invest some capital into the currency as a hedged bet against myself - that Bitcoin wasn't a bad idea after all. I continued learning about it, got some friends to chip in and, suddenly, we have a cryptocurrency trading firm amongst track and soccer varsity student athletes. 

The reason for such quick traction was this. THE RETURNS DURING THAT YEAR WERE INSANE! Co-founder would wake up and make $1000 on simple crash-trading, as small crashes in the value of all the core digital currencies was pretty much expected on a day-to-day basis. World events that affected Bitcoin also played a role.

We established a hierarchy of traders who were good enough as to not lose all your money. By December, when Bitcoin reached an all time high of $1200, I had $20K in my account...More money than I had ever seen. The investment I made in April of that year was only $1600. Of course, we only cashed out some of the capital, and then Bitcoin crashed again :(...

Of course, all was not in vain. What we gained, other than a profit, was a firm understanding of how the currencies are evolving (and why some are dying). I still hold capital in digital currencies, and day trade from time to time as well. The whole experience delves into how fickle "value" truly is in a digitized economy. Value is a social construct ever dependent on the status of the world - if there's a nuclear world war, then food is most valuable and all else is meaningless - if there's peace, then whatever currency the developed world has championed is the "new gold."