We have all heard about the crypto millionaires; people who invested in cryptocurrencies before the rest of us had a clue about what Bitcoin was. These investors saw their investments rise 10, 20 and even 50 times and reaped millions of dollars in months. However, very rarely do we hear how these gains became the source of misery. This is the case with one investor from California who made over $800,000 from his investment in Ethereum. However, after the market dipped, he discovered that he owed the government over $400,000 in taxes. Now, working at a $12/hour job, he fears he may not ever accrue enough to pay the taxes.
In May of last year, one university student in California got introduced to the world of cryptocurrencies. Like many of us, the student got wind of cryptos from a friend who was “going all in” on Ether. He was quickly sold on the opportunity and immediately opened an account with Coinbase. He then went on to invest $5,000 in Ether which according to him was half of his life savings. It was one of the best investment decision he ever made as in the months that followed, the value of his ETH stash skyrocketed as the entire crypto market reached dizzying heights.