The Risks of Investing Beyond Bitcoin: Why I, Prakash Chand, Only Trust Bitcoin Now (From $1.5M to $7.5M… to $0)

As someone who has been deeply involved in the crypto space for years, I’ve seen the allure of altcoins and NFTs firsthand. The promise of exponential returns, the thrill of the market, and the endorsements from respected figures in the industry can make these investments seem like golden opportunities. However, my experience has led me to a stark conclusion: when it comes to crypto, there’s only one asset I trust now—Bitcoin.

My Journey: From $1.5M to $7.5M… to $0

During the last bull run, I, like many others, was drawn to the potential of altcoins. To test the waters, I decided to invest a portion of my real estate investment portfolio—$1.5 million—into various altcoins. This was capital I had freed up by selling two condos in downtown Toronto that I had purchased back in 2004 for what now seems like peanuts. At the time, I believed I was making a smart move by shifting from real estate to the fast-growing world of crypto. Real estate had been a stable and appreciating investment, but the explosive growth in the crypto market was hard to ignore. I wanted to go even deeper into the crypto space, thinking that the potential for returns far exceeded what I could achieve with traditional investments.

Within 45 days, my $1.5 million investment had ballooned to $7.5 million. The rapid growth of my portfolio was exhilarating, and I was convinced that this was just the beginning of even greater gains. But, as I would soon learn, what goes up can come crashing down even faster.

I sought advice from someone I trusted—someone who was well-respected and experienced in the crypto space. Following their guidance, I decided to put my faith in a token called Luna. It seemed like a smart move at the time, but within 24 hours, Luna crashed to zero. My $7.5 million was wiped out overnight. The token turned out to be a scam, and I was left with nothing.

Not only had I lost the $7.5 million I had made, but I also lost the value of the two condos that would have significantly appreciated over the years. What was supposed to be a calculated risk ended up being one of my biggest financial regrets.

The Risks of Altcoins and NFTs

My story isn’t unique. The crypto world is rife with tales of investors who lost fortunes in the blink of an eye, often after being seduced by the promise of quick gains from altcoins and NFTs. These assets are highly volatile, susceptible to market manipulation, and, as I experienced, can be outright scams.

Market Volatility: Altcoins and NFTs are much more volatile than Bitcoin. While Bitcoin has established itself as the dominant cryptocurrency with the most robust network and security, many altcoins are speculative and lack the same level of adoption and trust. This makes them prone to extreme price swings.

Lack of Regulation: The crypto space is still largely unregulated, which means there’s little protection for investors. Scams and fraudulent projects are rampant, and once your money is gone, there’s often no way to recover it.

Influence of Whales: In the altcoin and NFT markets, a small number of large holders (known as whales) can manipulate prices by buying or selling large amounts of a token. This can lead to artificial price inflation or sudden crashes, leaving smaller investors at a disadvantage.

Why I Only Own Bitcoin Now

After my experience with Luna, I reevaluated my entire approach to crypto investing. I realized that despite the excitement surrounding altcoins and NFTs, Bitcoin remains the only truly decentralized, secure, and proven digital asset. Here’s why:

Proven Track Record: Bitcoin has been around for over a decade, and it has proven itself as a reliable store of value. It has weathered multiple market cycles, regulatory scrutiny, and technological challenges, yet it continues to grow in adoption and value.

Decentralization and Security: Bitcoin’s network is the most decentralized and secure of any cryptocurrency. This makes it resistant to manipulation and censorship, providing a level of trust that no other crypto asset can match.

Limited Supply: Bitcoin’s supply is capped at 21 million coins, ensuring scarcity and making it a deflationary asset. This contrasts with many altcoins, which have no fixed supply or are subject to inflationary pressures.

Store of Value: Bitcoin is increasingly being recognized as “digital gold.” It serves as a hedge against inflation and a way to preserve wealth over the long term. While altcoins may offer the potential for quick profits, they don’t offer the same level of security and trust as Bitcoin.

Final Thoughts

The crypto world is full of opportunities, but it’s also fraught with risks. My journey from $1.5 million to $7.5 million and then to $0 was a harsh lesson in the dangers of speculative investments. Today, I only own Bitcoin because I’ve learned that in a space as unpredictable as crypto, it’s the only asset that offers true security, decentralization, and long-term value.

I share my story not to dissuade anyone from exploring the crypto space but to caution against the allure of quick gains and the risks of investing in anything other than Bitcoin. As someone who has experienced both the highs and the devastating lows, I can confidently say that when it comes to preserving wealth and trust, Bitcoin stands alone. And if there’s one lesson I’ve learned the hard way, it’s that sometimes, sticking with what’s tried and true is the smartest move you can make.

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