--- title: "My Bitcoin Story" description: "The complete story of my Bitcoin story from 2011 to today, including the mistakes and lessons learned along the way." --- # Don't Be Chad - My Bitcoin Story This is my personal Bitcoin story--I will dedicate another page to "how I orange-pilled the company I work for." The details below reflect the actual timeline and experiences that led me to create this site. --- ## 2011: The Beginning - First Encounters ### Discovering Bitcoin on Slashdot & Ars Technica Back in 2011, I regularly read tech sites like Slashdot and Ars Technica. It was there that I first encountered stories about "crazy internet money." As a long-time computer geek, I was: - **Skeptical but intrigued**: I knew digital currencies were possible—ever heard of Flooz?!—but they never worked beyond the issuing entity - **Technically curious**: The computer science problems that were simultaneously solved in Bitcoin were mindblowing...almost to an unbelievable level - **Early adopter**: No, I'm not a hipster--can't grow facial hair much at all--but I got interested in Bitcoin before it was cool ### CPU Mining and First Loss - **Mining method**: Used Bitcoin Core on CPU to mine directly to wallet.dat - **Success**: Actually managed to mine some Bitcoin (was it really 50BTC then?!) - **The disaster**: The wallet.dat file was corrupted and lost in a hard drive failure - **Lesson learned**: Backups are not optional in Bitcoin - **Cost**: Unknown amount (Bitcoin was worth pennies then, but priceless lesson) --- ## 2012: Outsmarting Myself ### Losing A Wallet Password After losing the previous wallet to a failed hard drive, I began regularly backing up my wallet file(s). However, I also put a password on the file. Let's put a pin in that. ## 2013-2016: The Altcoin Exploration ### 2013: Dogecoin Experiment - **Discovery**: Learned about "the memecoin to rule them all" - **Method**: Used faucets to accumulate DOGE - **Experience**: First introduction to crypto culture ### 2013: ...And I Lost The Password - **Discovery**: When trying to open the wallet on a restored machine, I realized I didn't remember the password...on a wallet that had multiple Bitcoin - **Action**: I contacted a wallet-recovery service for assistance in recovering the wallet - **Results**: They were unable to recover the wallet - **Lesson learned**: Remember your password ### 2014: Starting (Undisciplined) DCA - **Platform**: Started monthly Bitcoin purchases on Coinbase - **Strategy**: Dollar-cost averaging before it was cool - **Regularity**: October 2014 marked the beginning of accumulation (but it certainly was not disciplined) ### 2014: BTC Hardware Wallet Upgrade #1 - **Purchase**: Trezor Model One - **Benefit**: Finally had a reasonable signing solution for my Bitcoin (instead of a hard drive and backups) ### 2015: Ethereum Distraction - **The Turing complete revelation**: "Wait, Ethereum is Turing complete?!" - **Path taken**: My software development background led me down the "Bitcoin 2.0" rabbit hole - **Time sink**: Spent way too much time on complex smart contracts - **Lesson**: Sometimes simpler is better ### 2016: GPU Mining Era - **Platform**: NiceHash for GPU mining profitability - **Focus**: Mostly mining altcoins for Bitcoin profits - **Experience**: Learned about mining profitability and hardware management --- ## 2017: ASIC Mining and the Trading Disaster ### ASIC Mining Adventure - **Hardware**: Got into ASIC mining, mostly Litecoin (L3++ machines) - **Strategy**: Mining Litecoin to accumulate Bitcoin - **Complexity**: Miner configurations, pools, exchanges, swaps: hard to manage & maintain - **Results**: Accumulated Bitcoin at a discount ### Gunbot Automated Trading Disaster Feeling confident about my technical skills, I discovered automated trading bots: - **Platform**: Gunbot - popular cryptocurrency trading bot - **Strategy**: Automated grid trading for "passive income" - **Setup**: Configured complex trading algorithms for Bitcoin and altcoins - **Initial success**: Small profits that made me overconfident ### The DeFi Trading Experiment I got into early DeFi before "DeFi" was even a common term: - **Platforms**: Various early decentralized exchanges - **Strategy**: Automated arbitrage and liquidity provision - **Complexity**: Multiple smart contract interactions - **Gas fees**: Transactions were very expensive (especially when they failed!) - **Technical issues**: Smart contract bugs and failed transactions ### The Automated Trading Catastrophe The combination of Gunbot and early DeFi trading was disastrous: - **Over-optimization**: Configured overly aggressive trading parameters - **Market volatility**: 2017 December crash wiped out automated positions - **Slippage losses**: Automated trades executed at terrible prices - **Gas wars**: Paid enormous fees during network congestion - **Smart contract failures**: Lost funds in buggy early DeFi protocols ## "Taking Profits" Sometimes you've got to let it ride... - **The selling mistake**: Started selling into the 2017 Bitcoin rally in August - **Compounded error**: Kept selling through November - **Ultimate failure**: Bought back in December (the absolute top) ### The Total 2017 Damage The year of "advanced trading" cost me dearly: - **Mining profits lost**: Sold early, bought at peak - **Bot subscriptions**: Hundreds of dollars--almost 1BTC since I bought the license during the lows that year--spent on Gunbot licenses - **Trading losses**: Automated bot made terrible decisions during crash - **DeFi disasters**: Lost funds in early smart contract failures - **Gas fees**: Hundreds spent on failed transactions - **Psychological damage**: Overconfidence leading to massive losses ### The Psychology Problem This was my first major psychological mistake compounded by technology: - **Paper hands**: Sold during the rally instead of holding - **Overconfidence**: Thought automated trading made me invincible - **FOMO buying**: Bought back at the peak after selling low - **Complexity trap**: Believed technology could beat simple discipline - **Lesson**: Automation and complexity don't replace patience and discipline ### Lessons from the Trading Bot Era 1. **Automated trading is hard**: Bots make mistakes just like humans 2. **Complexity adds risk**: Every additional system adds failure points 3. **Early DeFi was dangerous**: Smart contracts were experimental and buggy 4. **Gas fees matter**: Automated trading can burn through fees quickly 5. **Simple beats complex**: Dollar-cost averaging beats sophisticated algorithms ### One (Somewhat) Good Decision: BTC Hardware Wallet Upgrade #2 - **Purchase**: Ledger Nano S - **Justification**: Altcoins can't be stored in a Trezor, so at least I put them in a hardware wallet... - **Problem**: Mining directly to a hardware wallet creates a lot of problems, discussed elsewhere on this site --- ## 2018: The Altcoin Circus ### Getting Overwhelmed 2018 was when crypto started getting really complex: - **Too many projects**: Hundreds of new altcoins daily - **Information overload**: Couldn't keep up with developments - **Analysis paralysis**: Too many choices, no clear direction ### PoWH3D & UpStake - **The pyramid scheme**: Got caught up in proof-of-weak-hands gamification of crypto - **The promise**: High yields through gambling mechanisms - **Reality**: Just sophisticated pyramid schemes with crypto dressing - **Lesson**: Just buy and hold Bitcoin --- ## 2019: The First Major Security Loss ### Celsius Yield Trap - **The mistake**: Moved most crypto assets to Celsius for "yield" - **The thinking**: "Free money" from lending my Bitcoin - **Reality**: Centralized counterparty risk - **The scam**: CEO was a scammer: I lost significant Bitcoin - **Lesson**: Not your keys, not your Bitcoin (the hard way) --- ## 2020: Forced Savings and More Exchange Risk ### 401k Conversion - **Platform**: Used iTrustCapital to convert retirement funds - **Investment**: Significant retirement money converted to crypto - **Mistake repeated**: Still leaving Bitcoin on exchange - **Risk**: Centralized custodian with my life savings ### The Pattern Recognition Looking back, I see the pattern: - **Convenience over security**: Always choosing easy over safe - **Trusting third parties**: Assuming companies would protect me - **No proper backup**: Still didn't have secure backup systems ### Heating My House with Miners In the winter, I repurposed ASIC miners--mostly the L3++--for home heating: - **Low setup complexity**: Plugged miners in and fed into the HVAC system - **Heating rebate**: Cost of heating offset by Bitcoin accumulation - **Noise management**: Custom firmware & modified fans - **Temperature monitoring**: Automated systems to prevent overheating --- ## 2021: The Ultimate FOMO Disaster ### Altcoin Scams Wanting to make up for losses, I tripled down on mistakes: - **Elephant.money**: "DeFi protocol" promising 1000x returns - **DRIP**: Heavily endorsed high-yield project - **Multiple 'degen' tokens**: In short, ponzis that generated yield for early adopters - **Opportunity Cost**: Substantial Bitcoin sent to various scams - **Psychology**: Trying to recover losses with bigger risks - **Result**: More money lost to speculative nonsense ### Home Mining Upgrade I added electrical capacity to my garage to keep pipes from freezing: - **Upgraded electrical**: Added a subpanel to the garage - **Bought PDUs**: Each with dedicated switches & fuses - **Bought miners**: Added used miners (S19, S19 Pro, T19) to garage for heat --- ## 2022: The Painful Reality Check ### Well, It Started Off Great... - **Out of the blue**: The wallet recovery guy contacted me and let me know that he'd cracked the password - **Process**: I sent him my wallet.dat file, he took his cut--20% or 30%--and sent me the rest of my Bitcoin - **Lesson**: The Bitcoin community is awesome ### The Great Crash Bitcoin crashed from $69k to $35k, then to $16k: - **Portfolio devastation**: Down 70% from peak - **Psychological impact**: Depression, regret, anger at myself - **The realization**: I had no idea what Bitcoin actually was and how it is, in fact, a zero-to-one discovery of digital scarcity ### Celsius Collapse - **The event**: Celsius went bankrupt - **Loss**: Most of my crypto (and a significant amount of my Bitcoin) - **Lesson**: Centralized "crypto" platforms are extremely risky ### The Learning Awakening This was my rock bottom: - **Total losses**: Substantial amount in Bitcoin value lost - **Psychological state**: Complete demoralization and shame - **The pivot**: Learn if Bitcoin was really the apex predator or if it was all a scam - **Decision**: Suck it up, Buttercup ### Return to Dollar-Cost Averaging (but disciplined this time) - **Strategy**: Regular Bitcoin purchases regardless of price - **Discipline**: Automated purchases, emotion removed - **Focus**: Long-term accumulation, not trading - **Results**: Slow but steady position rebuilding --- ## 2023: The Recovery Year ### Executive Presentation - **Stealth Accumulation**: Used miners to heat conference rooms and sent the Bitcoin to a company wallet - **Executive Team**: Gave my initial pitch to the executives to really get into Bitcoin (after showing them the company already had some on the balance sheet) ### Bitcoin Focus - **Conversions**: Traded altcoins for Bitcoin - **Philosophical Alignment**: Started preferring Bitcoin-only companies - **Mining**: Purchase of additional Bitcoin miners, including local and remotely hosted - **Results**: Continued growth in Bitcoin position ### The Education Marathon Instead of more mistakes, I chose education: - **Books consumed**: The Bitcoin Standard, Inventing Bitcoin, The Sovereign Individual (I'll post a list of all of the books on this site soon) - **Whitepaper study**: Read and reread Satoshi's whitepaper multiple times - **Technical learning**: Nodes, mining, pools, security, privacy - **Bitcoin node**: Set up two Bitcoin nodes (for redundancy) - **LND node**: Set up LND to test out Lightning ### Upgraded Security Implementation - **Hardware wallet**: Blockstream Jade (later upgraded to Foundation Passport & ColdCard models) - **Multisig**: Geographically distributed hardware wallets (thanks, Matthew Kratter!) - **Seed phrase backup**: Multiple copies in different secure locations - **Security hygiene**: MFA everywhere, password manager, TOR/VPN when required - **Recovery testing**: Successfully restored from seed phrase multiple times --- ## 2024: The First Step Is To Admit You Have A Problem ### Attended a Mining Bootcamp Decided to talk with industry professionals to get a better understanding of the backbone of Bitcoin production - **Hands-on experience**: Learned ASIC operation, maintenance, and optimization - **Mining economics**: Understanding hash rate, electricity costs, mining difficulty adjustments, and profitability calculations - **Industry insights**: Learned about real estate acquisition, differences in power grids, market dynamics, and how financial regulations impair development of Bitcoin mines - **Networking**: Connected with professional miners and industry experts ### More Education After a few years without social media, I set up a few accounts to engage with the Bitcoin community: - **NOSTR**: Tested a number of clients in the (quite obvious) early days - **Club Orange**: Joined a few groups, including Lifetime, Mining, and Lightning (used to be called Orange Pill App) - **Telegram**: Joined a number of channels, especially dedicated to modding miners ### Focusing On Helping Others Realized my painful experiences had value: - **Community participation**: Helping newcomers in Bitcoin communities - **Mentorship**: Helped friends, family, and co-workers familiarize themselves with Bitcoin - **Wrestle with reality**: Started really thinking through the causality chain of every mistake ### Hosted Mining & Dedicated Bitcoin Spreadsheet Modeling Utilizing the data analysis skills obtained in my career, I started writing spreadsheets to model: - **Personal Finances**: How Bitcoin affects retirement planning - **Miner Profitability**: Fastest ROI vs longest "survival" rate vs tax writeoffs - **Miner Optimization**: Optimized parameters in custom firmware to get more hashrate at the lowest possible electrical cost --- ## 2025: Meatspace FTW ### Attended Multiple Conferences - **Heatpunk Summit**: Best signal-to-noise ratio at a conference I've ever attended -- the thought leadership in this space is incredible - **BitBlockBoom**: Another great Bitcoin-only conference: many friendships made and solidified here - **Kansas City Bitcoin Summit**: Great meetup with a(n almost) local Bitcoin group - **Mining Disrupt**: Proves just how much "Bitcoin-only" leads to better signal ### Presentations - **Simply Bitcoin appearance**: Appeared as a guest on a live show to discuss some of the topics on this website - **5th Bitcoin Block Party in KC**: Asked to speak during the event after my appearance on the Simply Bitcoin live show - **More executive presentations**: Gave the "Bitcoin should be on the balance sheet" pitch to the Board of Directors ### Bitcoin-only - **Migrated IRA**: Moved from iTrustCapital to Unchained for a multi-sig, self-sovereign IRA ### No Spam Allowed - **Switched to Knots**: After conversations with Bitcoin Mechanic in meatspace and researching the travesty of Bitcoin Core 30, it was the obvious answer ### Started Wichita Bitcoiners - **Inaugural meeting**: First meetup was a success, more are in the works ### Personal Progress - **Portfolio recovery**: Back to a disciplined accumulation through dollar-cost averaging - **Security posture**: Maximum security practices with redundancy - **Teaching effectiveness**: Better at explaining complex Bitcoin concepts - **Psychological health**: Much healthier relationship with Bitcoin --- ## 2026: Present Day - Different Kind of Wealth ### Personal Touch In 2026, I continue to meet face-to-face with Bitcoiners: - **Wichita Bitcoiners**: Set up a website (wichitabitcoiners.com) to coordinate further meetups - **Heatpunk Summit**: Presenting with the President of TESSERE about heating commercial buildings with miners - **BitBlockBoom**: Attending to continue to collaborate with Bitcoiners around the country ### Continued Growth The Bitcoin story never ends: - **Ongoing learning**: Lightning Network, privacy tools, technical developments - **Community service**: More people needing guidance as Bitcoin adoption grows - **Personal development**: Still learning, still making (much smaller) mistakes - **Education evolution**: Finding better ways to teach Bitcoin concepts - **Purpose**: Helping others avoid the pain I experienced --- ## The Complete Lessons Summary ### Technical Lessons (The Hard Way) 1. **Not your keys, not your Bitcoin**: The most expensive lesson, learned multiple times 2. **Seed phrase security**: Never, ever store seed phrases digitally 3. **Exchange risk**: Only keep trading amounts on exchanges 4. **Backup everything**: Test backups, verify recovery processes 5. **Address hygiene**: Never reuse Bitcoin addresses ### Psychological Lessons (Even More Expensive) 1. **FOMO kills**: Emotional trading always leads to losses 2. **Market timing impossible**: Dollar-cost averaging beats genius 3. **Get-rich-quick is a trap**: Bitcoin is not a lottery ticket 4. **Patience pays**: Long-term thinking beats short-term gambling 5. **Humility required**: I don't know everything, and that's okay ### Security Lessons (The Most Important) 1. **Security first, always**: Convenience costs more than you think 2. **Assume you're targeted**: Act like hackers specifically want your Bitcoin 3. **Defense in depth**: Multiple layers of security protection 4. **Test everything**: Verify backups, transactions, recovery processes 5. **Stay updated**: Bitcoin security practices evolve over time --- ## The Story Continues Bitcoin taught me: - **What money actually is**: Store of value, medium of exchange, unit of account - **The importance of security**: Digital asset protection is non-negotiable - **The value of patience**: Long-term thinking beats short-term gambling - **Power of community**: Learning together is better than failing alone - **The need for humility**: Recognizing what you don't know is strength My Bitcoin story has cost me over half a million dollars in direct and indirect losses, so...don't be Chad. --- **Want to share your own Bitcoin journey?** I'd love to hear your story (anonymously if preferred): chad@dontbechad.com *Last updated: February 2026*