The success story of the German teenager Erik Finman is not commonplace. When he is twelve, little Erik realizes that his future is not in a school career. Of course, that applies to the majority of his classmates, but Erik also acts accordingly. He finishes a bet with his parents. His parents say that he does not have to go to college when he is a millionaire before he turns eight. The rest is history.
Erik gets 1,000 euros from his grandmother, money that is actually meant for his study and buys bitcoin for it. At a price of about 10 euros each.
19-year-old bitcoin millionaire
Erik wins the wager with flying colors and becomes a bitcoin millionaire before his eighteenth. Erik is now nineteen years old and has been trading in crypto coins at Bitcoin & Co for seven years.
Our colleagues from Business Insider Germany spoke exclusively with Finman. Erik explains, among other things, why you can still become a millionaire with crypto coins over the next ten years and discuss the last week's crash.
Business Insider: Erik, we speak at a time when the prices of cryptocurrencies have plummeted across the board. Was this the beginning of a crash and perhaps the bursting of a bubble or just a delayed correction after the quick profits of the past few months?
Finman: "I still believe in crypto coins. There are always ups and downs on the way up. Many people have anticipated this decline: it was almost a self-fulfilling prophecy after many experts spoke of a bubble. "
"For me, the decline is the result of a declining momentum - after the development of the past months, it had to happen at some point. It was foreseeable because the value kept rising steadily, while many were not really 'convinced' of that price increase. "
"Of course I did not know exactly on which day that recoil would occur. Yet the advance of the crypto coins is unstoppable, a single crash does not change that. People will continue to invest and become more and more emotionally connected to digital currencies. "
That means you keep your bitcoins?
"That's right. I stay with my bitcoins - and there are a lot of them ".
Those are the words of someone who has invested in cryptocurrency for seven years and has a lot of relevant experience with it. But someone who has just stepped in recently will probably get nervous after the recent losses...
"I have met many such people. As the interest increased and the price rose, they were attracted by it and invested their money in it. But the biggest mistake they can make is when they step out of the market now and sell their bitcoins just because of a setback. "
"It is important to know, and especially when you invest a lot of money, that the prices fluctuate strongly. In the past, the bitcoin has had these setbacks time after time - and that will probably not be otherwise in the future. But probably the bitcoin will continue to rise. Maybe it will only take a few weeks, maybe years. Nobody knows, of course. For me, however, it would be the wrong strategy to sell after such a fall in price because I think the chances are that the value will rise again to the levels we have last seen. "
If you are so convinced, does this mean that you see a good chance of buying bitcoins now that the price is so low?
"Yes, exactly. But not just me. I have many friends and fans who almost beg for a crash. They asked for a correction and a crash because they wanted to buy but found the price too high. "
"With this fall in the price of the bitcoin, they get their chance. And now you have to have the courage to really step in. Otherwise, you look back at a certain moment and you think: 'If only I would have stepped in.' So I really think people are using the low price to hit bitcoins. "
Now not only has the bitcoin gone down, but most other cryptocurrencies have also fallen. Are you still convinced that the bitcoin is the best digital currency or do you have other favorites?
"Bitcoin is the best cryptocurrency. But remember that Bitcoin is just like Netscape or MySpace. "
"The bitcoin is more or less a pioneer of a new technology, for that reason alone it is important that the bitcoin continues to exist. However, the technology is already starting to become obsolete: if you want to buy a two-dollar cup of coffee, you have to pay thirty dollars in transaction costs for it. "
"Such problems need to be addressed at the technological level: through the introduction of a new currency or an update of it. Also, the costs of sharing are too high. To dig a bitcoin requires as much energy as a house to provide energy for a whole year. "
"Most miners are also located in China, which means that the energy comes from Chinese coal-fired plants: the bitcoin now causes enormous environmental pollution. This problem can also be solved with new technology or an update of an existing technology. Although the bitcoin has existed for a long time and MySpace or Netscape have also been successful for a long time, better products came to markets such as Facebook or Google Chrome. "
"The bitcoin as we know it today will not last forever. The only question is what comes after it: an update that solves the problems or another currency. "
Technology too has its limits and cryptocurrencies today have a completely different status than a few years ago. Do you think you would just as easily win that bet with your parents today?
"Anyone who gets smart in the area of crypto coins in the next ten years can make a fortune. With a market capitalization of some 500 billion dollars, it is a relatively small market. Do not get me wrong, that's a huge amount, but small compared to other asset classes. That's why I say: if you do not become a millionaire in the next ten years, that's your own fault. "
"In this area, new business models and innovations are still emerging, and therefore many investment opportunities. It's a new kind of gold rush or a new kind of Silicon Valley - there are really plenty of opportunities. "
That sounds very easy. After all, the ICOs [introduction of new crypto coins, red] shoot like mushrooms - and there is always the risk of a total loss.
"That's right, and it takes a lot of effort to analyze those ICOs. But this situation will also improve over time and there will be better and more credible ICOs. But it's not just about investing in existing things: everyone is free to start their own business and earn a lot of money. This is, of course, risky, but for me still less risky than pure investing in cryptocurrencies. "
"There are now two different ways to get rich with crypto coins: you can start a new business yourself or invest in existing coins and ideas. In the latter case, you can also rely on parties that have proven for a while that they can be successful, such as Monero. I love this crypto because it has good applications. However, a rule of thumb remains: be careful and look carefully at what you want to invest in. "