Didi Taihoto, his wife and three children are betting on all their money in Bitcoin, the digital currency that is expected to reach $ 1 million in the future.
In 2017, CNBC spoke to a Dutch family of five when they were in the process of liquidating their assets from a profitable company and 2,500-square-foot house to their shoes and trading them all for the popular cryptocurrency.
Nearly four years later, Taihoto and his family still have no bank accounts, a home, or all of that from personal property, all of the family's savings remain tied to highly volatile digital currencies.
"We got into Bitcoins because we wanted to change our lives," said the 42-year-old father of three.
When the Bitcoin price collapsed in 2018, Taihoto added more to his portfolio, saying he had always been a firm believer in the cryptocurrency bracing for a major recovery.
He added, "I think that in this bullish cycle, we will see a minimum peak of $ 100,000. I wouldn't be surprised if it reached $ 200,000 by 2022."
Bitcoin's price reached an all-time high on Monday, closing at nearly $ 20,000, and some analysts say the cryptocurrency still has a lot of room to run.
Mike Novogratz, CEO of investment company Galaxy Digital, believes that this comeback has only just begun, and he sees Bitcoin's price rising to $ 60,000 over the next year.
Tom Fitzpatrick, global head of CitiFXTechnicals, said the charts indicated Bitcoin could reach $ 318,000 by December 2021, in a report intended for Citibank customers.
Didi Taihoto bought the bulk of his Bitcoin holdings when it was trading for around $ 900 in early 2017, just months before it reached nearly $ 20,000 a coin.
Even as Bitcoin reached its peak, the family kept investing in cryptocurrency.Once the bubble burst and the price dropped to around $ 3,000 in early 2018, the family continued to buy more of it.
The father and his family believe that Bitcoin is not a bubble and will not collapse any time soon, but rather there will be a supply crisis where the number that will be available in the end is limited.
Part of the difference in Bitcoin's rise in 2020 versus 2017 is that institutional investors are now adopting the digital currency, adding new legitimacy to it, and helping wipe out the reputation risk to invest in.
“The 2017 rally was largely driven by retail investors, while this year we see a massive influx of corporate entities and institutional money managers,” said Matti Greenspan, portfolio manager and founder of Quantum Economics.
It's valuable because people think it has value, so it goes a long way when the coin gets a purchase from some of the biggest names on Wall Street.
But the technology behind Bitcoin is of great value, and we're talking about blockchain technology that will change the world along with artificial intelligence and some of the greatest modern technologies.
Bitcoin's rise in 2017 was driven by retail speculation and in 2020 it became billionaires and companies buying the digital currency en masse.
And this interest from institutional investors does not appear to be slowing. Six out of 10 investors surveyed by Fidelity in June believe digital assets have a place in their portfolios.
The digital currency is expected to be used as a hedge against inflation and against the devaluation of the US dollar and other monetary currencies around the world.
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