At the start of the year, Simon Lang was about $1,000 in the hole on his initial Bitcoin investment. But as the price of the digital currency ballooned to an all-time high of $266 last week, Lang found himself $60,000 richer.
But that didn't last very long.
As Bitcoin prices tumbled to around $50 earlier this week, the value of his stake shrank to about $11,000.
"I was surprised at how fast the price went up," said Lang, a 32-year old digital forensics manager in Staffordshire, England. "I was expecting it to fall a bit, but not as much as it has."
Update: Bitcoin bubble re-inflates
The price of the virtual currency, which was created by an anonymous hacker just four years ago, has increased almost 20-fold this year. It gained particular attention in the wake of a mini-bank run in Cyprus that raised concerns about the health of government-backed paper currencies like the euro and the U.S. dollar.
But as a rush of activity overwhelmed trading platforms, the price of the currency tumbled almost as fast as its rose.
Lang first began investing in Bitcoins two years ago, when they were worth around $20 apiece. Over the span of a month-and-a-half, he invested about $4,000.
"It started out just as a hobby," said Lang, a self-proclaimed technology geek. "I found the idea of a new and digital currency interesting. It went hand in hand with my work in digital forensics, so i decided it would be good to get into it."
Over time, Lang has become a Bitcoin believer.
"I don't see this as a short-term investment," said Lang, who expects Bitcoin prices to gradually recover in a couple months. Already his stake is worth about $20,000 again thanks to a small rebound.
"I've done research and think that Bitcoins will be a valued currency that we see accepted alongside paper currencies, kind of like credit cards over the long haul -- not as replacement," added Lang.
