Bitcoin Forum

Hey guys?

   Was just thinking about opening a credit card to investing in GLBSE. With an 14% annual rate,  (some cards even offering 0% interest for a year), would it atleast an 'ok' idea if you're responsible?

What are you guys thoughts about using a credit card to invest like 1-2k into GLBSE and make monthly payments off the dividends?

Nuts. There is no such thing as investment into GLBSE.

If you want to invest into PPTs, well a lot of people call it a ponzi. If you're ready to loose all of your money - go ahead.

Never said PPT's brah

The returns on many GLBSE issues are greater than the rate for the credit card, so it is not a completely insane idea. GLBSE issues tend to be high risk to get that high return, so you have to be careful. Bitcoins themselves are high risk. Bottom line, I would not suggest borrowing more than you would be able to pay back if you lose everything.

Perhaps a better idea would be taking a portion of your income to invest, sort of like putting money into a retirement fund (just much more high risk).

Borrowing money to invest increases your risk. It is generally not a good idea even in the real world. Credit card interest rates are high and bitcoin risks are high, so borrowing from a credit card to invest in bitcoins is probably a mistake. Keep in mind that even if your bitcoin investments fall through or the value of BTC drops, you still have to pay your credit card bill monthly.

A better idea might be to figure out how much you would have to pay monthly to pay back a credit card loan, and invest that amount monthly instead of borrowing from the credit card. That way, the worst you could do is lose all your investments instead of losing everything you own.

+1

Don't leverage for investment...

Why you think that?!

Offering 4.5% a week of interest isn't a ponzi scheme...

If you let 100 BTC in my hands, I turn it into 105 in one week with purely simple (and hard) work, called "trading"... Am I running a ponzi?!   =P

Cheers!
Thiago

Back when savings accounts were giving 7% interest a year, I would take out credit card balance transfers and put them in the bank, then pay the minimum interest each month.  With that I had automatic payments set up and insured by FDIC.

If you look around you can get 0% balance transfers still.  Most though will charge a 3% fee.

I still would not do it by putting money into GLBSE.  First there is the bitcoin exchange rate risk and then there is the risk of losing your money to a scam.  Think about it, if you could borrow $50,000 and put in into GLBSE, why doesn't the asset creator just borrow the same way as you?

Mostly because banks are only lending to people who do not need to borrow. For example, I have multiple credit cards with $20,000+ limits which I have not even charged anything on for months.

But I agree about the exchange rate risk and investment risk. Zero down Bitcoin investing is not the wisest move. About the most I have done with amping my Bitcoin related investment returns is 20% LTV.

Have done the CC thing a few times. Once they even gave me miles/points for writing the checks they sent in the mail.  ;D

i'm thinking that shows that ponzi mania is in full bloom and it can only go downhill from here.  this is glbse's shoeshine boy moment.

Statistically wise 4.5% / week investments are unheard of.