What do you think about borrowing against your bitcoin?

[angrynerd88]

Mostly people borrow to pay debts but if borrowing fair to extend your Bitcoin possessions is fine, just make beyond any doubt simply have sufficient cash to pay for that obligation or else you’ll finished up offering your Bitcoin fair to pay for it. I moreover don’t like to borrow cash and I just purchase bitcoin with my additional cash so I don’t got to constrain myself hurrying into this showcase, its superior to continuously learn to earn no matter in small but one day it will handsome amount.

[acquafredda]

Borrowing BTC rhymes with gambling BTC: since the value of the loan is usually fiat based and not bitcoin based, if the loan-to-value ratio falls under the emergency threshold it becomes a big liquidation risk! It is not an option to borrow money against bitcoin fro me now. Better to keep on holding.

[fullhdpixel]

The idea would be to borrow using the Bitcoin as collateral, and refinance as the price continues to rise. That way you don't sell your Bitcoin and you don't pay taxes, income tax or capital gains.It should be done with a low debt ratio, which will allow you to weather a bear market storm for a couple of years.

I do not see it clearly, I understand that in general the best you can do is to avoid debt and increase your net worth, and you can only sell partially when the price reaches certain milestones. For example, you sell 25% when the price reaches $100k, another 25% when it reaches $250k, and so on.

I don't like the idea they propose either, because if it were to become generalized, bitcoin would be encouraging the very thing it proposes to flee from: bitcoin is an alternative to money as debt and encouraging massive indebtedness by taking bitcoin as collateral seems paradoxical, to say the least.

Meehn I don’t think I like that kind of idea. I believe that most of us here are business people at least, so why not maybe take profit from the Bitcoin and use it to finance and boost your business to a higher level and then when you sell and make enough profit from your main business, you can then invest more money if the price of Bitcoin has reduced by then.

I think putting yourself in debt will be very bad, although I do know it’s possible that the price of Bitcoin can go up, but what if it doesn’t go up and it happens to be at the time you’re meant to pay the debt back? You will then be in a really tight position which wouldn’t be good for you. Well, it’s still left for you to decide, and moreover this is why you’re being told to invest what you can afford to risk, that way you wouldn’t have things like this to worry about, and will only withdraw whenever you want to, even if it’s in five years.

[CaVO32]

I prefer not to borrow atall. I would instead invest only a part of my whole savings  into Bitcoin rather than everything, then use the other parts to finance other important things when I need to . Or I will simply just focus on accumulating small bit of Bitcoin regularly.

Borrowing can be addictive. And imagine getting addicted to it but not using the borrowed money well and being profitable.

Borrowing is very risky as this market is a very volatile one. I won't advise someone to do it if he has other means. Just be contented on what you have and make use of it. Lucky, if the market is in the positive direction when you need to pay the loan. But how about, it is in the negative direction when the lender wants the money? For me, this is not a very smart move.

[Fatunad]

Let’s think, the person who would hypothetically borrow you BTC at price of 50 000 will want not 50 000 but the whole BTC back by the market price together with some per cents for instance in five years. So in five years BTC can cost one million as well as 20 000 and the person who borrowed BTC would have to give it back with per cents (not money but BTC and per cents). If he/she is a good trader than it might work but just hodling can't help hear.

Considering out those lenders into this forum where loans or borrowed btc should really be paid up on btc form and not on basing on the amount in fiat and thats whats really an advantage for those who do lend you off money and a very unfortunate event into those who borrowed up money.We know on how volatile the price is which means you do need to pay it up fully with bitcoin on exact number.
It would really be putting you in shock this is why i never intend to make out some loan in btc form.I would rather taking a loan in fiat with other viable source or ways i could rather than
on getting some loans in form of crypto.You wouldnt know on what comes next on next month .

[ice098]

Meehn I don’t think I like that kind of idea. I believe that most of us here are business people at least, so why not maybe take profit from the Bitcoin and use it to finance and boost your business to a higher level and then when you sell and make enough profit from your main business, you can then invest more money if the price of Bitcoin has reduced by then.

I think putting yourself in debt will be very bad, although I do know it’s possible that the price of Bitcoin can go up, but what if it doesn’t go up and it happens to be at the time you’re meant to pay the debt back? You will then be in a really tight position which wouldn’t be good for you. Well, it’s still left for you to decide, and moreover this is why you’re being told to invest what you can afford to risk, that way you wouldn’t have things like this to worry about, and will only withdraw whenever you want to, even if it’s in five years.

What is the used of borrowing money and making bitcoin as a collateral when you can exchange bitcoin into fiat and used the money that you have earned in cryptocurrency to sustain tha needs of your family right. Borrowing money is a total kind of risk plus let's add to your burden the fact that whether you have a source of income to be able to pay your monthly due or not you need to provide it. Better you think a better and wise decisiob before you put your bitcoin into collateral.

[Karartma1]

Borrowing without selling to get a few bucks it's quite a great thing for me. Last month I needed to buy both a washing machine and a vacuum cleaner and since I was short of cash I borrowed from Nexo credit line and sent the day on my crypto.com visa card. Next month I will repay in full and that's it.

[nightxglow]

It seems like a great theory. However, the collateral has to have certain value, no? I mean, it must be nice if bitcoin price increases, then you will have profits. But what if the price crashes? Then would it still worth it as the collateral as the value is not as high as the initial amount? Well, I don't really understand how it works, but the theory seems great for me if only the price remains high, and increasing. However, in this market full of volatility, I don't think things will go as easy as it seems. But there might be chances it works though, maybe someone can try and share their testimony of doing that?