A former gym owner who bought Bitcoin when it was worth less than $1,000 has urged other small investors not to be deterred by the volatility and scam warnings.
David Haslop has seen the Bitcoin he bought eight years ago rise from $1,000 to an all-time high of $110,000 last week.
When he first dove into cryptocurrency in 2016, he spent “a few hundred dollars initially,” and expanded that to a still-modest four-figure sum the following year, while expanded from Bitcoin to Ethereum and other altcoins.
While he is now reaping the rewards, the investment has been a hellish ride: Bitcoin climbed from $4,700 in 2018 to $92,400 in November 2021 before falling back to $25,000 in December 2022 as inflation and interest rates skyrocketed.
It jumped to an all-time high of $110,365 on March 14, but has since fallen back to $100,000.
A former gym owner with a mortgage who bought cryptocurrency when Bitcoin was worth less than $1,000 says investors in decentralized finance should have ‘guts’ and expect big price drops (David Haslop is pictured with his wife Kelly and their son Austin, 6)
Much of the recent increase can be attributed to the US lead regulator allowing the spot price of Bitcoin to be sold in exchange traded funds – where shareholders invest in a fund that holds cryptocurrency – and Australia’s corporate watchdog is expected to do the same.
“The whole story about it being a scam or a pyramid scheme can be completely dismissed,” Haslop told Daily Mail Australia.
He added that Bitcoin would eventually be used and accepted in the same way that dollars are now.
“It’s going to take a long time, it’s definitely something that’s inevitable,” he said.
“If you look online now, you will find websites where people can directly exchange goods and services for Bitcoin – there are KFCs and IGAs, normal retail businesses.”
Mr Haslop said this means cryptocurrencies are still a good investment even after the latest price surge, as many will likely sell their holdings and pocket the profits, causing the value to fall again.
‘If there is a sell-off, the decline may be as much as 30 percent. “I think it will be very short-lived,” he said.
‘Previously, every time the market turned around you would see a drop of 70 to 80 percent and I personally don’t think that will happen anytime soon.
“Those of us who have been in the market for a long time, despite those 80 percent declines, there have still been huge gains across the board for all these people who have been in the market for years and years and years.”
Mr Haslop said the journey from owner of a gym in Canberra to director of the Australian Crypto Convention and Blockchain Australia meant he had a strong belief in investment.
“You definitely have to have guts, that’s for sure,” he said.
“I’ve been through the volatility – this is the third bull run… I’ve been through it all.”
Mr Haslop said those considering getting into crypto should only do so with some advice and stick to trusted coins.
“Anyone who is new to the market and doesn’t know what they are doing should never get into that kind of investment strategy – stay away from it,” he said.
‘I try not to speculate on anything outside the top 10, it’s just not that safe.’
Bitcoin hit an all-time high of $110,000 in Australian dollars this week
Investors are advised to stick to the top 10 cryptocurrencies such as Bitcoin, Ethereum and Tether, as listed on the website coinmarketcap.com.
“That’s probably the top 10 list that most people would recommend,” he said.
Mr Haslop is now a 34-year-old married father of two living on the Gold Coast with a mortgage – like most Australians.
‘I still have a mortgage; any smart investor will use the bank’s money instead of yours,” he said.
But with homes out of reach for most young people in their 20s and 30s, he said investing in cryptocurrency was a way to save for a mortgage deposit.
“There’s no doubt in my mind about that,” he said.
As Australia increasingly becomes a cashless society, Mr Haslop said cryptocurrencies could also be a bulwark against authoritarian governments and big banks cutting people off from their accounts.
“No bank, no government, no entity can access that wallet and stop you from spending your own assets,” he said.
David Haslop said the journey from owner of a gym in Canberra to now director of the Australian Crypto Convention and Blockchain Australia meant he had an investment conviction.
Investors are advised to stick to the top ten cryptocurrencies such as Bitcoin, Ethereum and Tether, as listed on the website Coinmarketcap.com
In November 2021, just as Bitcoin was peaking ahead of a major fall, the Commonwealth Bank announced it would offer customers the ability to access up to 10 select cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash and Litecoin on the CommBank app.
But with the rise of scams, the CBA imposed a $10,000 per month limit on transactions with crypto exchanges.
“Education is critical and does not limit what people can and cannot do with their assets,” Haslop said.
The Australian Crypto Convention will be held in Sydney on November 23 and 24