I think your 5/2 here was unfortunate, but I don't really think Counterfeit is going to do very much for you here (not until you're overdrawing your deck and you want it as part of your payload). Both of you got a Golden Sombrero™, but his was much better for him than yours was. I think the game was mostly over for you by T5. In your position, I probably would have opened Cultist, but after T4 when you had $5, I would have whined a lot, then when I was done whining I would have bought a second Cultist. Maybe Counterfeit there? Eh, I'm not so hot on it there either.
On his end, when I didn't see either of my Urchins on T3 I probably would have picked up Urchin #3, especially since you already have one Cultist. Getting thin and junking your opponent are the top priorities here (in that order).
PPE: SCSN says he likes 3/4 over 5/2 here, I remember a previous disagreement we had on a stream long ago about exactly this (Cultist vs. Urchin/Mercenary) and I remember feeling like I had proved my point, that Mercenary beats Cultist. Now you want Cultist here because it's the best draw, and the Ruins are annoying, but if I could stack my deck I would choose a 3/4 and open double Urchin.