Bitcoin owners had an additional reason to celebrate the New Year when the price of the cryptocurrency hit record highs in December after rising 50 percent in December alone.
Some investors took this as an opportunity to take profits and convert their paper profits into cash ready for the real economy, even if the price surged above $ 35,000.
One crypto winner is William Mann, a 36-year-old farmer from Gloucestershire. He’s bought £ 50,000 worth of bitcoin in the past three years and is now sitting on a pile of £ 150,000 of “digital gold”.
“My first purchase was in 2017 when it was trading at around $ 1,000 per coin. I was speculating about what I thought was an interesting idea. I didn’t think it would realistically replace Fiat. [paper] Currencies or gold as a safe haven. It was just a little fun, ”he said.
“But as I started reading more about it and investing more, I got a greater appreciation for its properties over government-backed currencies. It was just real speculation, however. “
The last purchase from Mr Mann was made last fall for around $ 10,000 a coin. His timing was inspired or happy as the price has tripled since then.
Now he’s starting to cash in on his winnings. “I want to build an extension to my house and have paid for all of this year’s Christmas presents with the money I made,” he said.
Mr Mann admitted that he was very lucky and said he would donate some money to NHS charities. He is also aware that he must pay capital gains tax on the money he has made.
Ben Harrison, a 23-year-old software developer who lives in Liverpool, has redeemed £ 20,000 worth of bitcoin to fund his move from the Isle of Man to the mainland.
“I took out a large chunk of my Bitcoin wealth to pay for some important things like the security deposit for the apartment I’m renting and a new car. It will also help me pay my rent, ”he said.