I am about to do something massivley stupid

[notig]

I think it's a good idea IF you plan on paying the payments and just keeping the coins as savings. What you are effectively doing is just "locking in" the price at about what it is now. I am almost tempted to do the same because what if the price rises to 100? It sure would be nice to be locked in at paying 37 if that is the case. But who knows

[XxionxX]

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.

:/ I didn't know that this might be fraud, I have known people who used their student loan to buy a house. I will do more research into this. I picked a student loan because I am in school and I won't have to pay it off for a while.

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?

No loans of any kind. I currently have several thousand in savings, but I need that for a rainy day and stuff. And like I already mentioned, I would not have to pay until I leave school.

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.

These were my thoughts exactly.

OMFG lol! My sides! 

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.

While I generally agree, I feel like the market might also go the other direction. From what I gather the market is of two minds. Either we will pop this bubble soon or we will take off like an atom bomb before popping. I feel that the risk of waiting is not worth the potential loss of an unknown amount of coins.

Maybe I should daytrade with 25% on Mt.Gox and try and call the top? Sounds even more risky. I would rather just hold. :|

[XxionxX]

I think it's a good idea IF you plan on paying the payments and just keeping the coins as savings. What you are effectively doing is just "locking in" the price at about what it is now. I am almost tempted to do the same because what if the price rises to 100? It sure would be nice to be locked in at paying 37 if that is the case. But who knows

My thoughts exactly. I feel that locking in the price, whether it goes up or down in the near future, is worth the risk. I will be making payments as soon as I have to. I will also pay off as much of the principle as I can. I currently have a job and I am doing pretty well for myself.

[bbit]

DO NOT DO THIS!!!!!!!!!!

[XxionxX]

To all the bears: Yes I know.

To the people who are saying that you can't get rid of student loans through bankruptcy: Yes I know. But I won't have to pay until I stop taking classes.

[dancingnancy]

Do it.

Just dollar cost average in over the next 2 years.  Will most likely be well worth it.  If not, fuck it, I'm still paying mine off and I never finished the first time either.

[mccorvic]

But I won't have to pay until I stop taking classes.

And I did know some students who kept going to college for the lone purpose of not wanting to start paying their debt. Like, 7+ years of undergrad. I don't know what they thought was going to happen to them eventually....

[XxionxX]

DO NOT DO THIS!!!!!!!!!!

Why? Do you have a specific reason? I already said that I am ready to pay this off if bitcoin goes to $0 tomorrow. You are acting like I will die or something. I won't die, I will just feel really shitty. And to be frank, I have felt worse before. I have made stupider mistakes and been set back further in life. This is nothing compared to some of the stuff I have done. Go scare someone else who will listen.

I would be taking on a similar risk if I was starting a business, or even worse buying a car. At least with this loan I might make a profit, all of the other things I could buy are just liabilities. Does anyone have a safer investment for the same time period which will outpace inflation? I bet not.

Don't even try and tell me that gold/silver is a similar investment. I like those just fine, but I want a return. Those are hedges against a financial collapse, not investment vehicles.

I can't buy a house and rent it out for a similar price point. Starting a business will take more time, money, and a knowledge of a market. Also, about 50% of businesses fail within 5 years anyway. Isn't that a gamble too?

What exactly do you think is a good investment?

[DoomDumas]

This..

Almost all millionaires have been bankrupt few times before success..

Can you afford to lose it all ?  At your age, in your situation, I would do it, all in !  15k debt is'nt so much trouble at 26 with no ones to care for except yourself..

With the sate of the worldwide economy and quite dark future at the horizon !  Go for it, I would if I was you !

[XxionxX]

But I won't have to pay until I stop taking classes.

And I did know some students who kept going to college for the lone purpose of not wanting to start paying their debt. Like, 7+ years of undergrad. I don't know what they thought was going to happen to them eventually....

Do you happen to know if you pay interest on the loan while you keep it in this limbo? If not, that would rock. I plan to pay it off asap, and if I can I would keep a large portion of the wages from my job to pay the principle off asap. Normally I hate debt, buying stuff on a credit card sucks I have been there, but I am willing to take risks for a gain.

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

my first thought too...

Mine too. I mean, I am just the guy who posted here. What is everyone else doing!? 0_0

[evolve]

Wow. Just fucking wow.

Here's an idea, get student loans and use that money for an education. You obviously need one if you think that this is in any way a good idea.

[XxionxX]

bill-allin-fuckit.jpg

This..

Almost all millionaires have been bankrupt few times before success..

Can you afford to lose it all ?  At your age, in your situation, I would do it, all in !  15k debt is'nt so much trouble at 26 with no ones to care for except yourself..

With the sate of the worldwide economy and quite dark future at the horizon !  Go for it, I would if I was you !

Thank you for the support, I know this a bad idea and that is a risk I am ready to take on. I have no wife, kids, or obligations other than my job. The worst that can happen is a fuck ton of debt.

[Bit_Happy]

XxionxX, if BTC was currently at ~$5 and hadn't moved much in over 2 months, then would you really be thinking of doing this?

[Mike Christ]

Aw, who needs an education.  That's what we got Internet for!

[XxionxX]

Wow. Just fucking wow.

Here's an idea, get student loans and use that money for an education. You obviously need one if you think that this is in any way a good idea.

I can already weld and I can program. Why do I need any more education? I get paid decent enough wages (as long as the dollar does not collapse) and I could pay this of with relative ease in under 5 years.

I live at my parents house and I don't pay rent (I do help with the utility bills though). I keep all of my pay and I don't do much with it. What would you do with all that money?

A college education for $15k? Where do you live!? I can't even get through a year for that! And there is no way to pay for the diploma with that amount! There is no way I can finish a degree with the life I am living, I can't do 40hrs a week and another 30hrs at school. I tried it, I almost died<-- seriously! I am not smart enough to get through school while working a job. It takes too much out of me. I need to focus on one or the other and I cannot do more than that. Don't think I haven't tried.

I am only able to take a few classes a semester to gain basic skills which I can market in the workforce. I am actually way better off this way anyway, don't worry about me I can handle this if it fails.

I am not ever going to be able to get a degree, no one will let me and my parents don't have the money after sending my sister to college.

Don't act like you know everything about how to make a living. Jobs aren't the only way to success, they only seem like it.

[Mike Christ]

To add to that, all my professors state they never had to worry about working first or second jobs while going to school.  Apparently it's a relatively new thing that nearly everyone in college today also has to work good hours to make ends meet.  Recipe for disaster   The loans don't help, they just put off the debt.  Then when you're in debt, you really have to work to keep your head above water.  Locks you in until you're good and 40, or more.  I'm just gonna take it a step further and say it's intentional.

[evolve]

Wait, what?

You are 26, live with your parents, and don't pay rent? Holy shit, you are the epitome of a man-child.

And now you want to take out a loan to invest in a speculative internet currency with the relative risk level of a penny stock.....and you see nothing wrong with this?

What. The. Fuck.


Edit:

You asked what I would do with "all that money"?
I'd move into my own place. You know, like an adult.

[adamstgBit]

i dont get it if you have money saved up... why would you take out a loan?

[XxionxX]

XxionxX, if BTC was currently at ~$5 and hadn't moved much in over 2 months, then would you really be thinking of doing this?

I don't understand what you mean. That is like supposing that silver was at 5 dollars and hadn't moved for more than a decade. How did the periods of inactivity predict the periods of activity?

I am basing my gamble on the increasing number of new businesses which have been successful, not the ticker price or the flurry of people on reddit.

In fact, if the price crashed just before I got my loan I would be ecstatic that I could buy more coins at a cheaper price.

All I am worried about is the price going to >$5, and unless you have some knowledge that I don't then I am happy with my gamble.

[notig]

Wait, what?

You are 26, live with your parents, and don't pay rent? Holy shit, you are the epitome of a man-child.

And now you want to take out a loan to invest in a speculative internet currency with the relative risk level of a penny stock.....and you see nothing wrong with this?

What. The. Fuck.

In that case he is in a position to take on risk that some others might not be. You could argue that what he is doing is wrong from some moral standpoint but look at it from a financial one.