Bitcoin Forum

this is how you do it. 8)

yep, this is how you win in life

just do it!

Borrow money? Bad advice.......

If you're confident bitcoin will go up in price then yes, borrow money and buy bitcoin.  Even cash advances from your credit card should be maxed out.  What's the interest rate?  Maybe 20%?  That's nothing compared to bitcoin's ability to double in price over a matter of days or weeks (see 2013).

Just be aware of what happens if bitcoin falls in price while you're forced to make regular repayments to the bank.  Gamble responsibly.

I would not advise maxing out your credit card for this. While in the past, the price of Bitcoin has grown like 10,000%/year (100x), that is less likely to continue every time that happens.

My bank did recently offer to extend my credit limit. I plan to purchase about $850 worth every month for 3 months: leaving my original credit available. I also have a "low fee" credit card ("only" 11.99% annually). I do expect the price of Bitcoin to exceed that growth, but have no idea if it (a doubling) will actually happen before 2016.

What if something bad happens and I need the money before we reach moon?

sell Bitcoin.

It is not the end of the world if you do that.

Being able to do that requires the ability to secure said Bitcoin. Cold-storage helps: even against scammers pressuring you to "sell" your whole stash (ask me how I know).

Then I will be at loss and maybe with debits, so maybe worse than at the beginning :(

Courage wolf has taken out a second mortgage on his family's home, and now using full leverage to margin trading at Bitfinex

I took advantage of a 0% offer for 12 months. I only had to pay 2% of the total advanced. Kind of a no brainer really. Will pay off the balance over 12 months before the interest rate resets. Everyone's situation is different of course.

At least here where I live the interest rate of banks is too big...
I'm trieying to get money in other forms to invest...

Debts.

It is a real risk. Last October/November, I resisted the urge to take out a loan to buy Bitcoin. This was despite my confidence that the price would not drop below $300 if it ever surpassed $300. I still doubt Bitcoin will drop much below $300. If true, that would mean you would lose at most half of your investment. There is also a non-0 chance that Bitcoin will become worthless as well. The chance of that happening actually drops every year as Bitcoin matures.

If we all, I mean literally all did this and just ignored payments to the bank and let the bank take our houses and cars... we would be filthy rich and they would be left on a pile of used cars and other shit.  ;D

Ya, but where you store your private keys with no house/car?

Did you read the filthy rich part? Brainwallet?

I borrowed last night from a guy named Vinnie in my neighborhood to buy bitcoins. I am sure this will work out.

Sounds like a nice guy.

The wolf will be at his door then...pun intended.

In defense of speculation however, a study once found that multi-millionaires became such by simply assuming more risk.  For every multi-millionaire that's praised however, there's an even greater number of risk takers (due to the nature of risk/reward) that you never hear about because they went broke.

Vinnie Jones?

http://www.youtube.com/watch?v=X2P9gGElMB4

The soulless hyenas of the bitcoin community are getting extremely desperate and are actually recommending people to borrow money.
People should take loans, so they would channel it to the pockets of others, by making their coins worth more.
Disgusting..

The worst part is they were so very serious...


so sad...I am appalled

Getting loan for BTC is a good idea as long as the loan you are getting charge really low interest. Best if it is 3% and below..

Like nobody ever took out a loan to invest in anything before. Are you a communist?

i heard of a guy who took a risk and put all his life savings £50,000 into bitcoins.  1 year later, his a millionaire now but don't think the same thing will happen to you!

What has investing to do with bitcoin? Someone who borrows to buy bitcoin has a gambling problem.

No risk no gain, he deserve it :)

Only people that lose investments say that.

It's just an LBO somehow.

Very common.

People borrow to invest in property, stock and whatever, so thats gambling?

Property and stock have some utility in real world. Investing it bitcoin is just gambling hoping to get rich at the expense of others.

bitcoin is no gamble. it is a disruptive technology with massive infrastructures being developed to support it..
dont you think VC et al dont borrow even a tiny portion to invest in all the crypto start ups? ::)

+it is not at the expense of others.. just the bank. hence, makes perfect sens.

Not very educated in understanding what communism exactly stands for, are we?

Investment into BTC's unit price, means investment into new coin creation, which in turn means investment into mining. To pay those who waste their money in building and buying the mining equipment, that doesn't improve anything in bitcoin's network or anywhere else. Investing into bitcoin means rewarding useless work. So, bitcoin can be taken as an investment, but it surely is a dumb investment.

It's smarter to look at BTC as an short term gamble, where you put some money in, outplay some other players and take more money out.

Ahh...  If you were my kid, hdbuck, I'd be concerned.  Luckily, you're someone else's problem.

you did it?

yup

That was hyperbole. Let's break this down.

There are half as many new bitcoins created per block every 4 years. That is to create artificial and predictable scarcity. Basically, everything is known in order to decide to mine bitcoins. Miners have to decide if it is a business they want to get into, not bitcoin buyers. Everything else right now is speculation until adoption increases.
What about non-mining Bitcoin based businesses? Are they dumb investments too? Who are you to define what work is useless or not?


Life is a gamble, but you take educated risks. If you decide to take a chance on Bitcoin, remember that once you sell, you are out. When the next bubble comes, your orders may not be filled because the exchanges are unregulated.

Good that you did not borrow BTCs and then sold them and put that money in bank.

And when the interest rate go up, then bitcoin price will drop like every other assets out there.

low fixed interest rate

very funny tho for a guy named arbitrage. 8)

ps: bitcoin do the opposite of dollar, which is now rising.. but thats good enough.

I am not sure how you intent to borrow money from the bank without some collateral? Getting the loan from bank is not a easy thing, in most of the world

then youll be tempted to gamble and lose it all.

good situation. but you dont need much, if anything, for some basic consumption loan.

Carry trades are actually fairly common.  You borrow currency that has a lower APR minus inflation, then change it to a currency that has a higher rate on investment minus its inflation.  Just make sure you have enough USD to cover the monthly payments for the next 5 years and you should be fine.

 ::) going from one centralized money printing scheme to the next??

cuts like a knife...  :(