Bitcoin Investment: Good Debts vs Bad Debts

[inthelongrun]

Good debt or bad debt, I don't like either. Debt is not a very good thing. Debt degrades human nature. Although the borrowed money seems to be own money for some time, later the borrowed money has to be paid back on time. There are some bad loans that incur penalties if not repaid on time. It is not always possible to get success by using borrowed money, if the borrowed money fails to be used properly, the borrower must face losses. If you decide to invest or do business with borrowed money. I think, it is a wrong decision because there are risks in both investment or business. So I will never risk investing or trading with borrowed money.

I also have a mindset where I am feeling allergic when it comes to debts. I am feeling better and at peace when I have no debts.

But those rich people and companies are actually taking loans in order to establish more business. Of course, there are loan interests and penalties when loan payment dates aren't followed, otherwise, borrowers can abuse the system.

Borrowing money in order to trade is always a no/no to me and to most people here as I observed. Borrowing money is only at best when used in a business. Of course, before considering a loan, there should already be a business plan in order to have a higher chance of success.

[Altryist]

When we have made the decision to take out debt to be able to meet what we need, of course we are obliged to pay it off, for some people who run businesses they have to take out loans from banks for capital in the business they have run and also as a motivation for them to work working hard to make the business run well so that they can pay off the loans they have taken from the bank.

It would be better before we decide to take a loan from the bank, we must first assess ourselves whether we will be able to pay it off and if we think we will be able to pay it then we can take it, don't let it happen that after we take the loan we can't pay it off of course. This will get us into a problem that we should be able to avoid.

Buying Bitcoin with credit money is a game of luck, those who did it at the beginning of the year will definitely benefit from it, but if you take out a loan to buy Bitcoin now, then everything may be different.

Due to the high volatility, it is very difficult to calculate how advisable it might be to buy Bitcoin with credit money, because you can buy now for 37k and tomorrow you can see the price of 30k or 25k, which will bring losses, since you will need to make monthly loan payments.