The majority of Japanese people have one common problem — the nation is not able to save money! Even families, wealthy enough by local standards, unable to set aside at least some funds for a rainy day.
Japanese family of four, referred to in this story, lives in the Tokyo Bay area in the luxury high-rise building. For many years now they have to pay many loans. Every month the family spends monthly income almost to the last penny and unable to pay the training of daughters in private schools.
Once the head of the family, 42-year-old employee of the company Masao Ikeuchi learned about Bitcoin and decided that investing in this cryptocurrency will change their plight:
“At the end of November last year, when I first invested in Bitcoin (100,000 yen), a month later, its price has increased two and a half times. I was overjoyed and invested another million yen, expectations of fabulous wealth. But, as you already know, everything was on the decline. In the end, once awake, I realized that I had lost half of their savings”
The decision to purchase bitcoins to Masao and his wife Naoko came under the influence of colleagues Masao, who told them about the “easy” way to earn money. Before that, they talked with a financial Advisor. The beginning was great, but soon the couple suffered serious losses.
“How could this happen?” — ask yourself the question Masao and Naoko.
Their eldest daughter studying in second grade of secondary school and the youngest in fifth grade of elementary school. The family has Pets — two cats. The couple leads a happy life, typical of the “tribe caveman” as they are called in Japan (from the expression “tower-mansion”). We are talking about the Japanese possession of a new apartment worth about 60 million yen ($ 550,000 US). Basically, it’s three rooms with kitchen and dining room.
The monthly salary of her husband is 420,000 yen (3,800 USD), wife of 310,000 yen (USD 2800); Thus, their monthly income is equal to 730 000 yen (6600 USD). In Japan, the family income level is considered rich. Please note that in 2018 the minimum monthly salary in Japan is around 1300 USD, average — about $ 3,000, a high salary is considered to be $ 7,000 (about as much get doctors and lawyers).
Thus, the pair Ikeuchi earns in a year is 15 million yen (135,000 USD). They bought the apartment eight years ago, having spent almost all their savings. The initial payment of 10 million yen (90,000 US dollars). Every month the family spends about 710 000 yen (6,400 US$ ) to defer only 17,000 yen (153 USD) per month. By last autumn, the amount of their savings was 2.4 million yen (us $ 21 500. USA), and the pair began to fear that they will not be able to pay for children’s education. They needed easy and quick money. They thought about the investment that would bring them more than one million yen (9,000 US dollars) a year. These funds were enough to pay for school. And then, as has been said, a colleague advised them to bitcoins.
The head of the family decided to study and read a lot of articles about cryptocurrencies, and then bought bitcoins for 100,000 yen ($ 900 US), just to try. At first everything was fine: just over a month the price of Bitcoin rose to $ 2350. Mr. Ikeuchi was so inspired that he bought more bitcoins at 1 million yen (9,000 dollars).
In 2018, as we all know, Bitcoin price has fallen three times. The head of the family was nervous and even started to buy shares in the foreign exchange market. By the time when he fully realized what was happening, 1.1 million yen ($ 9900) that he has invested in Bitcoin has turned into 300,000 yen ($ 2,700).
So, Mr. Ikeuchi became a victim of the syndrome of loss of profits (FOMO — fear of missing out), and the desire to get rich quick. Investment did not increase savings, but rather ate them. The media constantly share success stories of investors, disrupting the jackpot in bitcoins or in the currency exchanges. Not surprisingly, many, such as Mr. Ikeuchi willing to take the risk.
Mizuki Yokoyama, financial planning specialist, said in an interview with the President Online:
“Investments rarely work when you are in a hurry to enter into some sort of alleged success. Often, it’s just beginner’s luck. As far as I know, little durable. I’m not saying that you should avoid investment per se. Saving on everyday expenses, people need to invest these funds in long-term projects with minimal risk”
It seems that our hero just can not manage money. But maybe he’ll learn from his mistakes and next time will invest more meaningful way.
The post FOMO in action: the Story of a failed investment in Bitcoin is a Japanese family appeared first on FineCrypto.