Bitcoin Forum

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Source 1 (https://lendedu.com/blog/bitcoin-and-credit-cards/)
Source 2 (https://news.bitcoin.com/report-reveals-18-of-investors-buy-bitcoin-with-borrowed-money/)

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People are so crazy, really...So, 18% used a credit card, 22% of them haven't pay off their credit card balance. 1/3 are worried about the interest expense.... and 23% will continue buying additional Bitcoin using your credit card?...
the average annual percentage rate (APR) on a credit card is 15.07 percent (https://lendedu.com/blog/credit-card-interest-rates)

Excellent post, OP!   :D :D :D

This is the first positive news story covering credit card use that I've read in a long time. Usually the only stories I see about credit cards are doom and gloom topics like "consumer credit card debt is at all time record highs, its the end of the world, kiss your butt goodbye~". This shows how great bitcoin is. It can take something negative like credit cards, some of which have high interest rates, and turn it into a positive thing where credit card users profit off of bitcoin's long term value.

This could serve as a microcosm of how bitcoin benefits the economy, job markets and has other far reaching and difficult to pinpoint positive implications. Maybe an example of how bitcoin benefits society and civilization and things like that.

This really does highlight the stupdity of people, these are the same people who go ahead and think that Bitcoin is going to 1M and they need to get in now. They probably don't even know anything about Bitcoin in the least though they think this is the path to finally making millions. I guess they'll be surprised when they get fully fucked as Bitcoin is taking a bit of a downturn -- at least from 20k


It's sad that this is the type of lesson that people need in order to not use margin to invest or to GAMBLE (as Crypto is basically gambling)

Well I do think that it's nothing sort of a bad thing.

Investing in something from borrowing money is something used by investors for centuries and it's in fact good source of income for the people investing in share market and for the businesses that have just established , it's just a sort of investment too for the people who can't afford..

I don't think we can judge on this because, it's the way it is and how it's related to bitcoins shows that bitcoins is getting accepted by people just like any share or something, it's nothing crazy or bad that's just their personal choice therefore is normal.

That's very risky. That's the bad thing about this Bitcoin media exposure that has exploded, people are taking risks that can easily end up hurting them. Imagine buying at 18,000, it goes down to $13,000, freaking out  and selling. Now you have to pay the credit card company, get disgusted with cryptos and leave, then 5 years later you take a look and Bitcoin is at $40,000.

I am strongly against making any such investment, but till now Bitcoin has given massive amounts of returns to whomever invested in that asset. So I don't have the right to advice anyone. If they want to take the risk, then let them take it. There is also a possibility that these guys will be having a better understanding about Bitcoin when compared to me.

I think it's very dangerous to borrow money to invest in bitcoins, because there are risks in investing, and there is no denying that investing in bitcoins will bring benefits, benefits and risks. When you assess risk, do you consider other factors that can be troublesome when you have no money to borrow?

Holy smokes. People are really stupid and dumb. I personally know a lot of people who are like damn rich now, and they didn't invest a penny in Bitcoin, they have all earned their way through and their hard work has paid them off finally. I believe loans should taken for investment only if you know what the subject is, otherwise that's sheer stupidity and a step taken for greed without knowing the consequences.

This is very serious!  I was thinking that money that should have been investing on this should be money one can afford to loss and not risk money from borrowing. Though bitcoin has returned huge amount of profit from it investors one has to really be careful the way they invest into crypto currencies. Many are using bitcoin as a mode of payment but and a lot of people are using it as investment with hope of huge return.

Although I am strong cryptocurrency believer, borrowing money to buy Bitcoin is too risky. For a short term its fiat value can fall, but you nevertheless have to make payments. In worst case you can become homeless!

It is true that there are people borrowed money to invest bitcoin. Mostly people working in some banking institution. They used and borrowed money from their workplace bank and invested to bitcoin that's why some large banks react of the price of bitcoin falling, because they got losed. It is only my own opinion.

Some people like to gamble, and if you are sure that you can return back the money you borrow then its okay, as we know crypto currencies got a good potential to earn only by holding it for some time, when people see the opportunity to make profit they will use every source to make it happen, and the bigger you invest the bigger payout you will get, but the person that lend money to invest sure got a good mentality

The investor hope that bitcoin profit that they keep as invest could pay the interest of credit card. It showing how people can get crazy with bitcoin. In the fact they do gambling with their real life. Bitcoin didn't always growth high sometimes its growth really low. Better using your own money to invest in bitcoin than should rise the debt.

well, this is nothing new. people have been making investments like this (with the money they do not own) for a very long time. of course some small number of them do this with some calculation of the risks but most of them do it recklessly. and this is not limited to bitcoin at all, they have been doing this in stocks market and in many other markets and investment types.

sometimes it is a good thing to take risks like this for example you borrow money and invest it in your own business and make it grow and pay it back after earning a lot more profit.
but sometimes some people do it just because they feel left out and want to take huge risks and it can end badly.

Holy moly that a bad idea borrowed money to invest in bitcoin what if bitcoin become useless after they invest in bitcoin? we know that bitcoin is very votile, but they take the risk they have a great trust in bitcoin i salute you guys.

Bitcoin is not a technology that would become useless all of a sudden but the volatility in price will be there , borrowing money to invest in something is always a bad idea but the price if bitcoin attracted many to make money in a short time and so is the reason we saw that trend.

Ive seen a lot of people borrowing money to buy bitcoin when there was a bull run, but they were to late to join the ride and then the dip came through, they bought at $18k thinking it will continue to rise but to their surprise bitcoin was dipping fast and they lost a lot of money.

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The risk taker are newbie to crypto currency and doesnt know a thing or two about bitcoin, they only join bitcoin because of the popularity that you can be a millionaire someday in the future just by holding bitcoin.

    Man, i never thought people can be this stupid or greedy. Imagine spending money you do not own and just borrowed which is already something that's enough to make me have sleepless nights, let alone the fact that you haven't payed yet but still plan to invest more and more to bitcoin. That is just wrong people.

But yeah i get it, bitcoin is really tempting. But unless you have spare to invest, don't jump into it. Like rely on bitcoin for your future. That is just plain dumb. I cannot even think about what they will do if certain emergencies come.to their lives and they cannot loan anymore. Oh well, that's their lives, can't do anything about it. Just sad that people are this greedy or dumb.

Or else whomever borrowed to invest in any cryptocurrency is 100% sure that his or her invest will yearn a particular profit then they can do so but if not, this is way too risky to do so. Investing in a cryptocurrency with a borrowed money is so much different from borrowing money to set up a business. At least in a business you many be quite sure your business will yearn some profit but cryptocurrency is a risky investment. This is just pure foolishness.

Wait, how could you say it's a good thing? I suppose you could consider it as such because it would seem some people have success with it, and more people entering the market is always a good thing, but I find the practice incredibly irresponsible.

You're essentially investing with money you don't have. Fact of the matter is that Bitcoin is speculative, and that 'good' news could just as easily have been bad. Many will tell you that you should only bet what you can afford to lose, and this looks like it just shatters that completely.

But uh, different strokes for different folks, I guess. If it works for them, then I can only really wish them luck.

not all people rich, especially from third world. with the accuracy of the analysis and calculation, they can gain a bit of profit from investing in bitcoin

18.15% are people who dare to take risks. I have said this in my previous post.
https://bitcointalk.org/index.php?topic=2697718.msg27632238#msg27632238
As I know, credit cards have a limit on the amount of loans that users can use, and each month, the user must pay at least 10% of the total loan used + interest. As long as the user still has other income that can cover monthly installments, maybe it's still safe. But if not, I think that's very risky.

Nothing harm in buying bitcoin with borrowed money. Those who don't have investment in hand also wants to earn some profit and wants to double or triple their money would definitely dare to take this step. However, after 1 or 2 years they can earn x5 times minimum of their borrowed amount growth for sure in bitcoin.

This is such a very risky act! Why would someone ever thought of doing that? Is it that  some digital investors are becoming more greedy or what? In as much as Bitcoin is booming and is a  good investment, borrowing to invest in it is  way too risky. Do they ever thought, what if bitcoin price goes down and became steady what would have happened? This is a big no for me.

Exactly, People do have a firm belief on bitcoin due to the price increase in last year but along with the bielief they should no about the risk and this is possible if they have knowledge of bitcoin, mostly people don't have a proper knowledge of bitcoin and blockchain and they are investing like crazy.

It's probably not a good idea to invest for borrowed money. In the case of a fall in price, this can end with a huge debt. It's a very big risk.

i invest in cryptocurrency no more than 10% of my income

This is terrifying. People are so desperate with their FOMO that they're taking on high interest rate loans to buy a highly speculative and inherently worthless asset. Taking on a high degree of risk to roll it into an even higher degree of risk is just the epitome of stupidity. Risk doesn't just add in this case, it compounds. I don't wish ill on these people, but I will not feel bad if their risky behavior burns them exceptionally hard. This is a potential problem that is entirely avoidable and foreseeable. First rule of investing is not to risk anything you can't afford to lose. If you're taking out high risk loans to invest, you've completely lost focus of what you're doing, or you never understood it in the first place. People resorting to credit card loans obviously shouldn't be investing in the first place, because there are more suitable ways to get an investment loan, so it seems to indicate these people don't have access to those channels because they're not well off enough or sophisticated enough as investors.

This shows the greediness of humanity,people want to make quick money with bitcoin even they don't have enough money to buy bitcoins.But it is not a bad idea if you can borrow money for low interest then you can make more profits with bitcoin and can pay their debts soon.But bitcoin investments are risky so we can't say when the price rise and fall so people who investing on borrowed money taking a big risk,sometimes it will payoff but many times you gonna be a loser.So please invest the savings amount only not the borrowed money.

I would be curious to see the median credit card charge. Several people I know are interested in holding bitcoins for fun or to satisfy their own curiosity, but they don't have sufficient liquid funds and aren't willing to sell long-term assets. What they've done is financed their purchases on 0% introductory rate credit cards, to be paid off with future expected cash flows. That could explain both why some haven't paid off their cards yet and why ~70% of those believe "bitcoin is worth the interest expense". I'm sure many are irresponsibly leveraging themselves, but hopefully most fall into the former category.

Yeah, must investments involved taking risk and these people that invested in bitcoin with credits wins the game. it appears the investment with the highest risks are the ones making more profits. There was a time when I read about a guy selling his house to invest the money into bitcoin around Mid-July 2017 targeting the August 1st, bitcoin hard fork that led to the creation of bitcoin cash. why is that guy by now? I know he must be very happy by now.

I am surprised it is so low.  From the thousands of posts I have read I was under the impression that every other person interested in Bitcoin was taking out a second mortgage on their house.


The average annual return on Bitcoin is 2400%.  I am not saying it is the smart thing to do but I get why they are doing it.  Greed.

People are putting all their hopes in BTC, and that isn't all. There are people that borrow money from banks without worring about paying 3x the amount borrowed back. Others sell everything they have to buy Bitcoins, what is much equally or risker than borrowing money. They are sure Bitcoin will continue profitable for a long time yet, 10%-20% profit people can make playing here with simple trading at exchanges without a large knowledge.

I don't think that investing from borrowed money is a bad thing and in fact, even i had tried and experienced it tons of times. But here using a credit card for investment capital is not a bad idea if you are having Faith in bitcoin and confidence on your gut feelings then you should little bit of risk and take trades during the deeper correction of the uptrend. But be careful during the sideways market you better stay away from trading during the sideways market, because it is better not to trade than loosing. I really like the confidence and gut feeling of these guys  :D .

18% is low in my opinion, I thought it would have been higher.
there are a lot of people who don't have financial skills and others who gamble.
I wonder when the survey was done, was it before bitcointalk.org hit 20k?
Ic it was did people cash out to pay off the debt? I doubt it.

Or they might have to wait three years to break even again just as the borrowers in late 2013, and I remember seeing the posts from them, had to.

I guess if you're one of those people who just doesn't give a shit about debt, and there are many, then you can go bankrupt and not care. I'm allergic to any type of debt but that's a minority view these days.

This is Really crazy. Only use Money on bitcoin or other cryptos which you can afford to lose. Bitcoins value multiplied in 2017 but this does Not mean it will multiply in 2018

In fact, i have a friend who asked for a loan to a bank of more than $10k, that loan had more than 50% of interest per year.

He bought bitcoin with that borrowed money, and he bought as many bitcoins as he could, if i am not wrong,
he bought btc when it was less than $500 each one of them.

He is still holding them, and i am not lying, i know him, and we have been being friends since we were ten years old.

No wonder crypto markets are so volatile. Most people have no real knowledge about bitcoin and blockchain technology in general, they just come in for the profit and they do it with borrowed money. Once the price starts to drop I bet that a lot of them just start to panic and sell, because of the fear of losing their investment and at the same time getting stuck with a loan to pay for something that they've already lost. This is really crazy, but I don't think it will stop.

These people should seek financial advice. While some people may make lots of money and are able to pay back their debts, am sure a lot screw up in the market and end up being bankrupt. Only invest what you can afford to lose.

You are right, its a good advice, but some people put last hopes in bitcoin and in some way I admire them. You need to be brave and risk sometimes, people think that with loans from the bank they can double or triple their money and to have to return, that is not bad strategy but bitcoin price can go up
slowly and that is probably not the speed they wish to see. Bitcoin will rise, but for that we need to wait, this price now didn`t come from yesterday its something that is build for 9 years.

Even though they earned profit from investing with bitcoin, but it's gonna be hard making investment using borrowed money because they think also for the interest of it. But anyway, somewhat to say "no pain no gain". Their trust towards bitcoin really give them courage to take the risk and believing that they can make huge money from here.

It is very risky on their part using borrowed money to buy bitcoin but majority of those who bought have been able to pay their debt so good for them. For those who wasn't able to pay though may have bough bitcoin when it is around $18k above and they are at a loss now and surely not happy with their decision if they are just waiting for bitcoin to go up again but if they traded in other coins and gained much more then good for them. There is quite a surge  in altcoin lately and maybe someone was able to buy XRP, TRX or VEN when it is still cheap so they have multiplied their money already. Well surely the advise of invest what you can afford to lose is not applicable to them.

There is a high risk to borrow money to buy BTC. Right now I think a lot of people have paid for their decision

Let me say some observations first. One is that this may not be a conclusive study because first, not everyone in the cryptocurrency world is in this platform; and second is that not every person in this forum may have seen the survey. But okay, assuming that it is a good survey. Numbers show that people are becoming more resourceful in where they get their investment money. It's either they just want to use a credit card to have their money rotating while they still have their savings, or they just don't have the money. If the latter is true, then people is having a lot of hope and belief into bitcoin, or plainly people are desperate.