‘I believe bitcoin is the best form of money’

Ask most financial podcasters how they started investing. They will probably cite business interests and enthusiastic parents who encouraged them to look at the stock market.

For Peter McCormack, the early inspiration came in the form of a “bag of weeds.”

“The reason I started Bitcoin was when I came back in 2013, I said one of my friends came and found this new website called Silk Road,” he said with FT’s Money Clinic podcast. It is revealed in the interview.

“To buy weeds, I needed something called Bitcoin, so I bought some.”

Fast forward to today and founded the podcast McCormack in 2017 — What did bitcoin do — One of the most famous financial shows on both sides of the Atlantic Ocean.

For the past five years, a 42-year-old former advertising executive from Bedfordshire has interviewed Bitcoin commentators worldwide, from investors and tech specialists to macroeconomics and executives working in the fast-growing crypto industry. I have traveled inside.

Last month he El salvador Record the country’s journey towards legal tender for Bitcoin and interview the president Nayib Bukele..

McCormack said: “Six or seven years ago, my life collapsed. I was divorced, my company went bankrupt, my mother died, and I was two weeks away from losing my home.

“I started this podcast in 2017, but I didn’t expect it to be anything. It’s just a hobby. Now I’m interviewing the president. How this happened There isn’t even a way to try to understand.“

Bitcoin’s bullish McCormack isn’t afraid to disagree with his opinion on the podcast, but he believes cryptocurrencies will generate far better returns, so traditionally to pensions, equities and equities. Avoid investing in. He also invested in Bitcoin miners to create new Bitcoins by solving complex calculations and even mined Bitcoin himself.

However, in an interview with his money clinic, he revealed that he had a “buy and hold” strategy and was no longer willing to make money by trading Bitcoin after a disastrous initial loss. bottom.

“I think we invested about $ 30,000 in 2017. By the end of the year, [I was] It’s close to $ 1.5 million, I don’t understand the market at all, I just thought I was a genius, and I lost most of it again, “he admits.

“”Then I decided to stop trading and took a very different strategy.I believe Bitcoin is the best form of money that exists, so I decided to put much of my personal and business interests into Bitcoin. [as possible] Just hold it for years. “

It has proven to be more advantageous for McCormack, at least on paper.

“It changed my financial position,” he said, refusing to go into more detail. “I’m not glorious, but that’s one of these weird things. I don’t really want to spend Bitcoin, so I won’t get rich.”

In the FT podcast, he explains why he believes that potential returns from Bitcoin will outweigh other forms of investment in the long run.

“For me, it’s a worthwhile store. But when I was in El Salvador recently, I was using Bitcoin on my cell phone … Buy coffee, buy breakfast, buy supper. So I used it as a medium for exchange. “

Katie Martin, a podcast guest and market editor for FT, casts doubt on this duality.

“The real puzzle in the center [of bitcoin] Is it really going to the moon, or is it a currency that can be used to buy eggs, Tesla cars, etc.? It cannot be both. The crypto industry has yet to come up with a good way to square the circle. “

Nevertheless, she admits that it was a milestone year for Bitcoin.More and more Mainstream financial institutions He has shown a serious interest in cryptography. The list of crypto platforms Coinbase in the United States was another big moment. El Salvador is unlikely to be the last country to make Bitcoin legal tender.

But the surge in popularity and price of crypto investment has put them on the clash course with Financial regulator, Especially in China Crypto crackdown in progress This year has caused major fluctuations in the prices of Bitcoin and other coins.

China is one of many planning countries Central Bank Digital Currency (CBDC) is, in McCormack’s view, the “ultimate form of control.” .. ..Depending on where you live, your transaction can be used against you“.

The mainstream investment world is divided. Cathie Wood, founder of ArkInvest, predicted last month that Bitcoin prices could skyrocket to $ 500,000 within five years ( FT poll, Three-quarters of the readers disagreed).Ray Dalio, founder of hedge fund Bridgewater Associates, recently warned Regulators will “kill” Bitcoin If it succeeds too much.

The potential to make a lot of money very quickly, despite risks and price volatility An undeniable attraction For young investors.

Think of everyone as a scammer and protect yourself. .. ..Wide threat model

The Financial Conduct Authority Over 2 million people In the UK, we hold Bitcoin or other forms of cryptocurrency as an investment, but many are unaware of the risk of investing in an unregulated asset class.

In an FT podcast, McCormack warned young investors to be especially vigilant against cryptocurrency-related fraud.

“Everyone is a scammer and consider protecting yourself,” he says. He uses a hardware wallet and private key, but the scam is clever and he is overly vigilant.

“You may receive fake emails [supposedly] From the ledger Bitcoin was stolen, saying that the hardware wallet needed to be updated and plugged in, “he says. “A wide range of threat models.. “

McCormack was asked what advice to give to young investors and urged them to become more interested in Bitcoin than just the price before letting go of cash.

“First and foremost, before investing in this kind of thing, make sure you have a job and enough income before deciding what percentage of it you want to invest.

“Understand what Bitcoin is and the role that Bitcoin supporters think Bitcoin can play in society.”

“And don’t trade. 95 percent of the people who try to do it will lose. If you need to trade, don’t use leverage. Bitcoin is volatile. [Leveraged trades] Will play with your emotions. I talked to many people who were completely financially ruined by cryptocurrencies and lost everything.“

To hear an interview with Peter McCormack, click the link above or search for “Money Clinic” where the podcast is available.