The family invested all their money in bitcoin: how they live after three years

Didi Teichuttu, his wife and three children bet on Bitcoin. In 2017, the family invested all their funds in cryptocurrency to make money on it in the future. How they live today and what they hope for, says CNBC.

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In 2017, a Dutch family of five liquidated all their assets—from their profitable business and 2500-square-foot (232-square-meter) home to their shoes—and traded it all for popular cryptocurrency and a nomadic life.

After almost four years and 40 countries visited, Teichuttu and his family still do not have bank accounts, a house or other personal property. The family still keeps all their savings in very volatile cryptocurrencies.

“We switched to Bitcoin because we wanted to change our lives,” said the 42-year-old father of three.

When the price of bitcoin dropped in 2018, Teichuttu added even more to his investment portfolio. He says he has always been firmly convinced that cryptocurrency is preparing for a major leap forward.

“I think we'll see a low peak of $100 soon. I wouldn’t be surprised if it reaches $000 by 2022,” he said then.

Bitcoin price hit a record high on Monday November 30, closing at $ 20. Some analysts say the cryptocurrency still has room to grow.

Mike Novogratz, CEO of investment firm Galaxy Digital, believes the race to reclaim the value of cryptocurrency is just beginning. He sees that Bitcoin will rise to $ 60 by next year.

And Tom Fitzpatrick, head of CitiFXTechnicals, in a report aimed at Citibank's institutional clients, said bitcoin could reach $ 318 by December 000.

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Why is this not just another bubble?

Teichuttu bought most of his bitcoins when they traded at around $ 900 in early 2017, just a few months before they hit nearly $ 20 per coin.

Even when Bitcoin peaked, the family continued to invest in cryptocurrency. When the bubble burst and the price dropped to around $2018 in early 3000, Taihutta and his family weren't deterred.

“When Bitcoin fell, we started buying more,” said the head of the family. — I don’t see a decrease in demand. I think we are heading towards a supply crisis.”

The bitcoin race in 2020 versus 2017 is somewhat different in that institutional investors now accept bitcoin, giving it legitimacy and helping to eliminate the reputational risk of investing in cryptocurrency.

“Growth in 2017 was largely driven by retail investors, while this year we are seeing massive inflows from corporates and institutional money managers,” commented Mati Greenspan, portfolio manager and founder of Quantum Economics.

Old billionaire hedge fund managers Stanley Druckenmiller and Paul Tudor Jones now own bitcoins, and big fintech players like Square and PayPal are adding crypto products as well.

This massive adoption is extremely important because cryptocurrencies are not backed by assets and have no government backing. They are valuable because people believe in their value. Therefore, Bitcoin goes a long way to being bought by famous people on Wall Street.

Bitcoin supply crisis

The surge of interest from the main financial players not only changed the image of bitcoin, but also provoked a supply shortage.

“The root cause is the same,” Greenspan said. — This is a question of lack of digital technologies. There is a strictly limited amount of Bitcoin available on the market, so when everyone is buying and no one is selling, this can cause enormous pressure on the price. The players have changed this time."

The 2017 race was driven by retail speculation, and in 2020, billionaires and corporations are buying bitcoin in droves.

“When PayPal starts selling bitcoin to its 350 million users, it also needs somewhere to buy bitcoin,” Taihuttu said. “There will be a huge supply crisis because not enough new bitcoins will be mined every day to satisfy the needs of large companies.”

And this interest from institutional investors does not seem to be diminishing. Six out of ten investors surveyed by Fidelity in June believe digital assets will be in investment portfolios.

Despite the 2020 profit, the fact remains that a speculative asset like Bitcoin is subject to price fluctuations in a very short period of time.

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The 2018 sell-off in cryptocurrencies, including Bitcoin, was fast, brutal and more destructive than the bursting of the dot-com bubble in 2000.

2020 may look different, but as an asset, bitcoin behaves cyclically. Each subsequent high is higher and the lows are not so low, but Bitcoin is certainly not immune to another major correction.

For Taihuttu, playing with Bitcoin is not just about making a profit. He's already given half his money to charity, and his family of five has spent the last four years traveling the world to spread the gospel of decentralized digital currencies.

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