I am about to do something massivley stupid

[XxionxX]

Hello fellow bitcoin users.

I have been watching bitcoin over the past 2 years, I 'bought in' about 6 months ago. Over the months I have watched bitcoin developments and feel strongly about bitcoins future. Barring some massive hole found in the code, or something disastrous happening worldwide which might make people feel that bitcoin is terribly insecure, I feel that bitcoin's rise is inevitable.

Now comes the stupid part. I am thinking about taking on a $10k-$15k student loan to purchase bitcoins.

No, I don't need you to tell me why this is a retarded idea or why this is massively risky. I understand the risks quite well and I think I have lost my marbles. I have determined that I would rather pay off this loan than miss this investment opportunity. I know that if this fails I will kick myself forever, but I am young (26) and I can recover.

I was wondering if anyone knew of any loan services which might be good for this purpose, or things I should know about making such a large purchase. Please keep the doom and gloom to yourself, I know this is stupid but I have made my decision. I need ideas and help.

I plan to be holding for at least 5-10 years, and I would be willing to part with about 50 of my coins for $15k to pay off my loan and break even (a.k.a. a price of ~$300 a coin). I will be holding my breath until then. I plan on doing this in such a way that I do no incur Forex taxes on my 'cash out'. And I would probably end up having someone pay off my loan for the trade of coins below market rate. I would probably end up paying for everything I need in bitcoins as I see no reason to exchange my money back out and let 'the man' take a cut of my profit. This is my super scary gamble and I want to keep my reward if I get it.

Thank you very much for any positive input. And I hope you have a great day.

Edit:

Ok, I slept on it and I have made a decision.

• The student loan is out, there are just too many reasons not to use a student loan despite the advantages. My loan will either be from a credit card or some kind of p2p loan.
• My loan size will be an easily manageable level, I will be taking out $6k. I can comfortably pay this amount back in under a year and I could probably hock all my stuff at a pawn shop if I really needed to get rid of it asap. This limits my stupidity/insanity to a reasonable level.

I would really like to be bolder, but I believe that Melbustus is right when he said:

I know you're not planning on defaulting, but your financial position suggests a volatile situation where even *you* may not be aware of how you'll react to various developments.

I have the resolve, I just don't want market forces making decisions for me. I am not so stupid as to assume that the market will go up enough for me to pay this off in the next several months. I know my job will still be here in a year barring the collapse of the USD. And I know I have the assets to settle my debt quickly if I needed to. All of this money would be savings or expendable money anyway. I just want it now.

I plan on selling 50 of my coins to break even when the time comes. I will keep the rest.

Now I just need to figure out how to buy.... Leveraged or all in :/ Anybody know if we are going to crash soon? I would really like to get coins at a discount! 

[Monster Tent]

Its posts like these that show the top of the market cant be far away.

[adamstgBit]

this massively stupid, dont do it!

[DeathAndTaxes]

OP isn't that fraud?  Taking a personal loan or using a credit card is one thing but how exactly are you planning on getting a student loan for "not being a student".  Also buying an investment on credit because it can't go down is a good way to royally screw up your finances.

Also if you are in the US understand the COMPLETE stupidity of what you are doing.  Student loans are the ONLY form of debt that you can never get away from.  No statutes of limitation, no credit reporting length, no ability to discharge in bankruptcy.  Car loan, mortgage, home equity loan, signature loan, business loan you get (with different levels of difficulty) get away from them but not student loans.   They are for life and the banks will use the collection arm of the IRS to seize every tax return from now till the day you die in order to satisfy your debt.

[Mike Christ]

Do it!  If they have no problems with keeping you in debt with crazy ass loans, you shouldn't have any problem beating it  Just don't get into any legal trouble...

[shkiser]

GO balls deep! Im turning everything i own into btc.. 

Just seen someone was trading their family dog for btc lol

[mccorvic]

People are taking out loans to buy cars! Clearly the top of the auto market is just around the corner....

But seriously, don't take out a loan for anything if you can avoid it.

[fwho]

GO balls deep! Im turning everything i own into btc.. 

Just seen someone was trading their family dog for btc lol

It is not my family dog. It is one of the puppies out of the recent litter.
The family dog is the white stud who will probably be fixed (and retired) after this year, but will not be going anywhere.

[Mike Christ]

Actually, how much would interest cost for these loans once the 5-10 years is up?  Is it still worth it considering?

[fwho]

This idea is awesome! I might actually register for some classes so I can take out a student loan and do this.
But, I also have $20k student loan repayment through the Army that has never been touched.

[mccorvic]

OP isn't that fraud?  Taking a personal loan or using a credit card is one thing but how exactly are you planning on getting a student loan for "not being a student".  Also buying an investment on credit because it can't go down is a good way to royally screw up your finances.

I don't know about the laws around student loans, but I think they're pretty lax until you get in trouble.  A lot of people use some/most of the money as "living expenses" if they don't have a part-time job.  I also knew a guy who bought a motorcycle with student loans. So, go figure.

[adamstgBit]

Actually, how much would interest cost for these loans once the 5-10 years is up?  Is it still worth it considering?

I would assume he would buy the bitcoins never sell them, and pay back the loan asap working a job...

I have a feeling he already has student loans and this would just be another 15K

Typical American Student?

[Mike Christ]

OP isn't that fraud?  Taking a personal loan or using a credit card is one thing but how exactly are you planning on getting a student loan for "not being a student".  Also buying an investment on credit because it can't go down is a good way to royally screw up your finances.

I don't know about the laws around student loans, but I think they're pretty lax until you get in trouble.  A lot of people use some/most of the money as "living expenses" if they don't have a part-time job.  I also knew a guy who bought a motorcycle with student loans. So, go figure.

Yeah they don't pay any attention to what you're doing with those loans.  I mostly use mine for food and shelter  I bought a phone too, but the loan money mixes with your regular money so they don't know what's what.  I don't know if OP could get caught.

[justusranvier]

If this trade goes against you you're going to be screwed. You can never discharge student loans in bankruptcy and the interest will keep accumulating until they start garnishing Social Security payments.

Really the only way out of unpayable student loans is to permanently expatriate.

[Mike Christ]

If this trade goes against you you're going to be screwed. You can never discharge student loans in bankruptcy and the interest will keep accumulating until they start garnishing Social Security payments.

Really the only way out of unpayable student loans is to permanently expatriate.

Thailand's not so bad

[justusranvier]

Thailand's not so bad

I hear there are job opportunities all over the world for native speakers to teach English...

[fwho]

I would assume he would buy the bitcoins never sell them, and pay back the loan asap working a job...

Wouldnt it be better just to cash out the monthly loan payment and hope bitcoins price increase more than the APR?


I have never taken a student loan, so how does this work?
If tuition is $9k, and you take out a loan for $20k, isnt someone going to get suspicious?

[adamstgBit]

I would assume he would buy the bitcoins never sell them, and pay back the loan asap working a job...

Wouldnt it be better just to cash out the monthly loan payment and hope bitcoins price increase more than the APR?


I have never taken a student loan, so how does this work?
If tuition is $9k, and you take out a loan for $20k, isnt someone going to get suspicious?

they want you to use their loans so you can live comfortably without working a job to pay for rent / food, so you can focus on your studies, but you can spend it anything you want... all they care about is you paying it back + interest.

and no it would most likely be more profitable to sit on the bitcoins forever and pay back the loan with income.

[Jutarul]

[Rassah]

I don't think buying right now is a good idea. I just can't see this high price being sustainable. Otherwise, I'll be doing something similar. I did it once, borrowing $15k last summer, and used the proceeds to pay off the loan and buy myself a new car. As soon as the price dips enough for me to feel comfortable again, I'll be borring $15k and doing this again. So, the idea isn't necessarily stupid, but the timing might be.