How weird is it to borrow money and invest into Bitcoin?

[Pamadar]

Borrowing money from the bank to invest in crypto is essentially betting on which asset would appreciate more, a currency which suffers from inflation and has unlimited supply or an asset with storing value + utility. So yes, it would be weird not to do it.

If he's talking about some ideas about Bitcoin, then politely, here's the market for a while. He has no idea if they'll repay the loan, but we've mentioned the possibility of Bitcoin, but there's not much tension.  After a while, the market will return to normal, but investors will be under a lot of pressure to repay the loan if they have some patience, then their problem will be solved from here.

Best if he has other resources to pay that loan aside from waiting for his investment to grow.

This volatile industry is unknown. I mean, the chance is there either you'll gain profits or if the market does the sideways and
you don't have that knowledge and do the panic, the chance of losing a big portion of your loan money will be burned.
Unless you really have a deeper knowledge and you are willing to take that big risk, you never know what the future will be
the chance is equal to everyone it's on you take whether to deal with it or not.

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[Falconer]

Best if he has other resources to pay that loan aside from waiting for his investment to grow.

This volatile industry is unknown. I mean, the chance is there either you'll gain profits or if the market does the sideways and
you don't have that knowledge and do the panic, the chance of losing a big portion of your loan money will be burned.
Unless you really have a deeper knowledge and you are willing to take that big risk, you never know what the future will be
the chance is equal to everyone it's on you take whether to deal with it or not.

Investing with borrowed money is actually never recommended for those who don't know how the market works. I once heard of a person who was very enthusiastic about investing and selling all his assets temporarily just to have capital to invest, but in the end he had to come out disappointed because the price of the assets he invested did not match his expectations.

From there we can learn that no matter how good the potential, we should only do it for what we can afford to lose. We really shouldn't be greedy because crypto is a very volatile asset so we should also be aware that at any time the price could drop far below what we expected.

[Polkeins]

Best if he has other resources to pay that loan aside from waiting for his investment to grow.

This volatile industry is unknown. I mean, the chance is there either you'll gain profits or if the market does the sideways and
you don't have that knowledge and do the panic, the chance of losing a big portion of your loan money will be burned.
Unless you really have a deeper knowledge and you are willing to take that big risk, you never know what the future will be
the chance is equal to everyone it's on you take whether to deal with it or not.

Investing with borrowed money is actually never recommended for those who don't know how the market works. I once heard of a person who was very enthusiastic about investing and selling all his assets temporarily just to have capital to invest, but in the end he had to come out disappointed because the price of the assets he invested did not match his expectations.

From there we can learn that no matter how good the potential, we should only do it for what we can afford to lose. We really shouldn't be greedy because crypto is a very volatile asset so we should also be aware that at any time the price could drop far below what we expected.

The question here is rather not greed, but risks. As it was correctly noted earlier, taking a loan is not a crime - it is important to understand when and how you will give it.
It's not bad if there are some assets for unforeseen cases. Often the trouble is that the person who takes out a loan is prone to risk. We know many success stories when people soared to the top, but we do not know about those who went bankrupt or could not repay their debts and became bankrupt. In the case of bitcoin, you can take a risk, given the volatility, but you should always remember about 2019 - early 2020. How many people then "capitulated".

[cheezcarls]

I would never ever loan or borrow any amount just for the purpose of investing into Bitcoin. Instead of loaning, I would rather earn it in any way even if it means of getting a low wage job, etc. That's where I usually started in low wage jobs in which I saved money in order to buy some cryptocurrencies even in just small amounts.

[Lanatsa]

I would never ever loan or borrow any amount just for the purpose of investing into Bitcoin. Instead of loaning, I would rather earn it in any way even if it means of getting a low wage job, etc. That's where I usually started in low wage jobs in which I saved money in order to buy some cryptocurrencies even in just small amounts.

Good for you but there are people who do really need to take off some risk for them to make out some investment which it isnt really that bad to take some consideration when it comes to this matter.

As long you do know on how to repay those loan or debts then i dont see any problems with that but if you are into the situation which you couldnt able to do so then you should it as much as you could.

It would really be that much a good idea if you would save up money for you to make out investment with that.

[JayJuanGee]

Borrowing money from the bank to invest in crypto is essentially betting on which asset would appreciate more, a currency which suffers from inflation and has unlimited supply or an asset with storing value + utility. So yes, it would be weird not to do it.

If he's talking about some ideas about Bitcoin, then politely, here's the market for a while. He has no idea if they'll repay the loan, but we've mentioned the possibility of Bitcoin, but there's not much tension.  After a while, the market will return to normal, but investors will be under a lot of pressure to repay the loan if they have some patience, then their problem will be solved from here.

Best if he has other resources to pay that loan aside from waiting for his investment to grow.

This volatile industry is unknown. I mean, the chance is there either you'll gain profits or if the market does the sideways and
you don't have that knowledge and do the panic, the chance of losing a big portion of your loan money will be burned.
Unless you really have a deeper knowledge and you are willing to take that big risk, you never know what the future will be
the chance is equal to everyone it's on you take whether to deal with it or not.

You have the right idea, Pamadar; however, i just believe that you have not fleshed out the situation very well in terms of the value of being able to use a loan.

Of course, the bet could work out either way, and so that is part of the justification that anyone using a loan to speculate on bitcoin (or front load his investment) is prepared that the BTC price could move in either direction during the time of the loan.  There are ways to calculate a present value to the money, which I had done in some of my earlier posts in this thread.

Yeah, it is not guaranteed that the loan will pay off, but it is not merely a random assertion that it might work and it might not, and of course, everyone who is contemplating going through a process to use loan money to possibly increase their BTC stash, and to front load their BTC investment timeline should at least go through the individual calculation that attempts to account for the actual terms of the loan and the various up and down scenarios and then decide if overall it is better to get the loan rather than not getting the loan.  It could be a close call, and for sure, folks who have a lot more resources can both negotiate better loan terms, but also they can deal with negative outcomes too, including paying the loan off from sources outside of BTC's price going up (which it might not happen by the time the loan comes due).

We really shouldn't be greedy because crypto is a very volatile asset so we should also be aware that at any time the price could drop far below what we expected.

Actually, the point about NOT being too greedy, is a good one because historically, bitcoin has shown that ONLY a relatively small amount of capital invested into it could pay of stupendously.  So if we might be recommending anywhere between 1% and 25% of an investment portfolio could end up in BTC, if an investor had put that 1% into bitcoin at any time before 2012, the 1% may well have ended up being 95% or more of overall value, if the value had not been reallocated.

Of course, some aspects of bitcoin's upside potential has gone away, so the downside is less risky, but the upside is also less likely to appreciate 1,000x... or even 160x as it had done if an investor had gotten into bitcoin in 2015 when BTC was in the lower $200s for a considerable time for that whole year (2015 I mean).

[mich]

I am not in favor of borrowing money to invest in Bitcoin. I think it’s weird to invest other peoples money because of risk. If you’re looking to buy your first home, I can possibly understand borrowing some money from friends and/or family because it’s a physical asset.
At worst case if a serious recession occurs at least you have a shot of holding on to the home and living in it. Personally, I do think Bitcoin is a great investment opportunity, especially for the long hold but not with other people's money.

[LUCKMCFLY]

It's a two ways thing , it could be profitable and in order hands not be profitable, the weird part of it is when you borrow and invest on a particular coin with the hope of getting profit to payback your debt and you get recked at the end of the process. So if someone wants to borrow money with the aim of investing into Bitcoin, I suggest it should be for long time, something like 1 Year and above because anything lesser than that could be weird.

Of course it will be profitable, but if and only if you have privileged information all the time or have a very broad understanding of the market, but if you ask for a loan with long-term payment facilities it would be ideal because that way you would have There is more opportunity that bitcoin can rise in price and thus be able to pay the installments quickly, currently I do not see it as bad to ask for a loan to buy BTC, but that you have the capacity to pay at least so that you can pay in installments.

[zaesvlas]

I have only one question for the author. Are you so confident in your skills that you are ready to invest with the money you borrowed? Don't you think it could end differently?

[Desscount]

It's a two ways thing , it could be profitable and in order hands not be profitable, the weird part of it is when you borrow and invest on a particular coin with the hope of getting profit to payback your debt and you get recked at the end of the process. So if someone wants to borrow money with the aim of investing into Bitcoin, I suggest it should be for long time, something like 1 Year and above because anything lesser than that could be weird.

Of course it will be profitable, but if and only if you have privileged information all the time or have a very broad understanding of the market, but if you ask for a loan with long-term payment facilities it would be ideal because that way you would have There is more opportunity that bitcoin can rise in price and thus be able to pay the installments quickly, currently I do not see it as bad to ask for a loan to buy BTC, but that you have the capacity to pay at least so that you can pay in installments.

However it depends on each person's ability because basically borrowing money to invest in Bitcoin is one way,
but it must be remembered that investing in crypto is a big risk and of course you need to consider many things before making a decision to borrow money,
long-term investment in Bitcoin is the right and profitable choice

[JayJuanGee]

It's a two ways thing , it could be profitable and in order hands not be profitable, the weird part of it is when you borrow and invest on a particular coin with the hope of getting profit to payback your debt and you get recked at the end of the process. So if someone wants to borrow money with the aim of investing into Bitcoin, I suggest it should be for long time, something like 1 Year and above because anything lesser than that could be weird.

Of course it will be profitable, but if and only if you have privileged information all the time or have a very broad understanding of the market, but if you ask for a loan with long-term payment facilities it would be ideal because that way you would have There is more opportunity that bitcoin can rise in price and thus be able to pay the installments quickly, currently I do not see it as bad to ask for a loan to buy BTC, but that you have the capacity to pay at least so that you can pay in installments.

I am going to suggest that it is almost impossible to have confidence that you are going to have superior information for the duration of any loan term whether that is a loan that is as short as 1 year or a loan that might have a longer duration that goes up to 3 years or more. 

Many of us who are into bitcoin likely have superior information about bitcoin in the event that we might have conclusions that are similar to Michael Saylor to have some bullish longer term views that likely go beyond 4-10 years, and even in terms of 4 years or longer, we have largely high levels of probabilities that we consider to be in favor of Bitcoin having higher prices in 4 years or longer than it has today.

So, yeah, many times there are loan terms that are not easy to get for 4 years or longer, except for being able to put down collateral, and the shorter term loans that are less than 4 years are going to run risks that the price of BTC may well be lower than the price when getting the loan and of course, mere break even prices will have to account for the cost of the loan (whatever fees and interest was incurred to enter into the loan).

So my point is that any superior information that any of us has in respect to bitcoin is likely based on probabilities that we understand that the longer the time period the more likely the BTC price is going to be up, and in the shorter term (such as less than 4 years) it is much more difficult to know enough of the factors that might end up moving BTC price to proclaim that we have superior information beyond maybe being able to assign a bit higher probabilities to UP rather than down.. but still would not necessarily mean that the price might not end up moving against what had been the direction with the higher odds at the time of the assignment.

Of course, the most sophisticated of players will have hedges for the potentiality of the BTC price to go in either direction, and the capital (or extra cashflow) from a loan may well be used to more comfortably be able to move into those kinds of bets.

I have only one question for the author. Are you so confident in your skills that you are ready to invest with the money you borrowed? Don't you think it could end differently?

Maybe you should explain your question a bit better in terms of what you might be suggesting?

Are you suggesting to invest into bitcoin, but not to use a loan?  Even some of us who are suggesting that a loan could be considered, most of those who are suggesting the consideration of a loan, are not proclaiming the conclusion to be obvious and for sure even if OP seems to be leaning towards considering loans to be potentially used to cause better situations (especially for rich peeps), the fact that s/he is asking the question does not suggest that s/he already has the answer, even if s/he is already leaning towards considering loans to allow for leveraging that might not be possible without such loan(s).

[edited out]

However it depends on each person's ability because basically borrowing money to invest in Bitcoin is one way,
but it must be remembered that investing in crypto is a big risk and of course you need to consider many things before making a decision to borrow money,
long-term investment in Bitcoin is the right and profitable choice

Of course, there is a correct framing that a loan is not necessarily needed in order to likely be profitable with bitcoin.  Historically, bitcoin investors have been very profitable in bitcoin without necessarily using loans, and likely in the future bitcoin will continue to be relatively greatly profitable as compared with other possible investments and likely to pump forever as has been described by several folks who study what bitcoin actually is, what it is doing and its position in the world.. so the pumping forever seems likely to continue to happen in some kind of a way, if the investor is able to use 4-10 years or longer as his/her investment timeframe.

[feelideb]

It is not weird to borrow  to buy bitcoin especially when sales is going on. I have had to borrowd to buy bitcoin during the pandemic and there were irrational dumping of bitcoin in march 2020. That decision was one of the best decision I ever made in life!

[MinMan]

I am not in favor of borrowing money to invest in Bitcoin. I think it’s weird to invest other peoples money because of risk. If you’re looking to buy your first home, I can possibly understand borrowing some money from friends and/or family because it’s a physical asset.
At worst case if a serious recession occurs at least you have a shot of holding on to the home and living in it. Personally, I do think Bitcoin is a great investment opportunity, especially for the long hold but not with other people's money.

So, it's okay to borrow money and to invest in a physical asset? Why? because you can see it or you can sell it? I think bitcoin has no difference to the other physical assets, it's just btc is digital but they can act the same, you can also sell your btc.

If you can ask a loan from your family and friends, that's better than loaning on some company because there will be less pressure since you know them personally and you can easily make an excuse if ever btc value didn't pumped yet. It's not weird to borrow money to someone else because you're still going to pay them and borrowing money is an old thing already. It's helpful is use in the right way.

[Nrcewker]

I would never ever loan or borrow any amount just for the purpose of investing into Bitcoin. Instead of loaning, I would rather earn it in any way even if it means of getting a low wage job, etc. That's where I usually started in low wage jobs in which I saved money in order to buy some cryptocurrencies even in just small amounts.

That’s really a genuine and smart method to get Bitcoins and hold them until the price rises.
Moreover what’s OP also said can be done too.
If you see for the past 1 month, Bitcoins are falling till 37K usd then again after some days they reaching at 45k usd and this is going on a continuous basis.
If someone have watched this trend then i am sure for short term he might have made good profits.

Still borrowing someone’s else money and using it is really riskier.
But guess what, opinions regarding this will vary from people to people.

[Pamadar]

Borrowing money from the bank to invest in crypto is essentially betting on which asset would appreciate more, a currency which suffers from inflation and has unlimited supply or an asset with storing value + utility. So yes, it would be weird not to do it.

If he's talking about some ideas about Bitcoin, then politely, here's the market for a while. He has no idea if they'll repay the loan, but we've mentioned the possibility of Bitcoin, but there's not much tension.  After a while, the market will return to normal, but investors will be under a lot of pressure to repay the loan if they have some patience, then their problem will be solved from here.

Best if he has other resources to pay that loan aside from waiting for his investment to grow.

This volatile industry is unknown. I mean, the chance is there either you'll gain profits or if the market does the sideways and
you don't have that knowledge and do the panic, the chance of losing a big portion of your loan money will be burned.
Unless you really have a deeper knowledge and you are willing to take that big risk, you never know what the future will be
the chance is equal to everyone it's on you take whether to deal with it or not.

You have the right idea, Pamadar; however, i just believe that you have not fleshed out the situation very well in terms of the value of being able to use a loan.

Of course, the bet could work out either way, and so that is part of the justification that anyone using a loan to speculate on bitcoin (or front load his investment) is prepared that the BTC price could move in either direction during the time of the loan.  There are ways to calculate a present value to the money, which I had done in some of my earlier posts in this thread.

Yeah, it is not guaranteed that the loan will pay off, but it is not merely a random assertion that it might work and it might not, and of course, everyone who is contemplating going through a process to use loan money to possibly increase their BTC stash, and to front load their BTC investment timeline should at least go through the individual calculation that attempts to account for the actual terms of the loan and the various up and down scenarios and then decide if overall it is better to get the loan rather than not getting the loan.  It could be a close call, and for sure, folks who have a lot more resources can both negotiate better loan terms, but also they can deal with negative outcomes too, including paying the loan off from sources outside of BTC's price going up (which it might not happen by the time the loan comes due).

Very much enlightened and thanks for that insight, I agree with how you describe people who will take this kind of risk.

Taking loans after working with their own understanding on how the market may favor them and also accepting
the kind of risk in case the market will go sideways, a good preparation to have a backup resource to pay back
the loan amount, it will be crucial for small time investors, but for those who have that good credit, they can play
both Long and short investment plan.

[NewRanger]

I am not in favor of borrowing money to invest in Bitcoin. I think it’s weird to invest other peoples money because of risk. If you’re looking to buy your first home, I can possibly understand borrowing some money from friends and/or family because it’s a physical asset.
At worst case if a serious recession occurs at least you have a shot of holding on to the home and living in it. Personally, I do think Bitcoin is a great investment opportunity, especially for the long hold but not with other people's money.

it is really high speculation if borrwing money only to buy bitcoin or cryptocurrency, i am curious what will we gonna do if our investment running as not our hope ? by borrowing money , its easy to us being panic when price drop and maybe our goal earning money from here being earning loss. take loan for buying and home totally different, in a day bitcoin price could drop 10% and even more if continuely drop day by day. ratio between risk and profits was equal, and its be a differentiator investing in home or properti. price move steady and maybe only growth 20% in year but difficult to drop from our buying price.

[JayJuanGee]

Borrowing money from the bank to invest in crypto is essentially betting on which asset would appreciate more, a currency which suffers from inflation and has unlimited supply or an asset with storing value + utility. So yes, it would be weird not to do it.

If he's talking about some ideas about Bitcoin, then politely, here's the market for a while. He has no idea if they'll repay the loan, but we've mentioned the possibility of Bitcoin, but there's not much tension.  After a while, the market will return to normal, but investors will be under a lot of pressure to repay the loan if they have some patience, then their problem will be solved from here.

Best if he has other resources to pay that loan aside from waiting for his investment to grow.

This volatile industry is unknown. I mean, the chance is there either you'll gain profits or if the market does the sideways and
you don't have that knowledge and do the panic, the chance of losing a big portion of your loan money will be burned.
Unless you really have a deeper knowledge and you are willing to take that big risk, you never know what the future will be
the chance is equal to everyone it's on you take whether to deal with it or not.

You have the right idea, Pamadar; however, i just believe that you have not fleshed out the situation very well in terms of the value of being able to use a loan.

Of course, the bet could work out either way, and so that is part of the justification that anyone using a loan to speculate on bitcoin (or front load his investment) is prepared that the BTC price could move in either direction during the time of the loan.  There are ways to calculate a present value to the money, which I had done in some of my earlier posts in this thread.

Yeah, it is not guaranteed that the loan will pay off, but it is not merely a random assertion that it might work and it might not, and of course, everyone who is contemplating going through a process to use loan money to possibly increase their BTC stash, and to front load their BTC investment timeline should at least go through the individual calculation that attempts to account for the actual terms of the loan and the various up and down scenarios and then decide if overall it is better to get the loan rather than not getting the loan.  It could be a close call, and for sure, folks who have a lot more resources can both negotiate better loan terms, but also they can deal with negative outcomes too, including paying the loan off from sources outside of BTC's price going up (which it might not happen by the time the loan comes due).

Very much enlightened and thanks for that insight, I agree with how you describe people who will take this kind of risk.

Taking loans after working with their own understanding on how the market may favor them and also accepting
the kind of risk in case the market will go sideways, a good preparation to have a backup resource to pay back
the loan amount, it will be crucial for small time investors, but for those who have that good credit, they can play
both Long and short investment plan.

Of course, it could be that some people might end up calculating the probabilities of UP, versus DOWN versus SIDEways wrong, but if the ultimate conclusion is that the odds for UP are pretty high, then it may well make sense to take the debt, even though the price could end up going the other way - but the overall odds still justified taking the bet.

So, each person will have to weigh the probabilities, and how much of a burden they might suffer if they end up getting the bet wrong.  So for example, if they take a loan for $10k and that loan has a 2 year duration, so they already know that the loan is going to cost them something like $1k, so they already account for that.  At the same time, they calculate the odds of the BTC price going up or the BTC price going down within those two years and they conclude that it is likely to go up more than 10% (in order to pay for the debt), but even if it does not end up going up 10%, they realize that the most that it is going to cost them would be $1k to take that gamble so long that they have their back up funds accounted for.    So, a common way that people consider would be the mistaken calculation regarding which way the BTC price might go, yet another way would be if the person failed/refused to calculate the costs, and/or even to end up enduring more costs because they were gambling on the source of the back up funds, too.

We already likely realize that there are some people who take chances on loans and credit who are not really in a position to take such chances, and frequently we will hear about those kinds of incidents, we should try NOT to be that kind of a person who does not adequately calculate based on his/her own situation.. and yeah, even one of the common calculations might regard a future cashflow that might have a 80% to 90% odds of continuing, but on the other hand could end up drying up, too.... and just because there are a variety of calculations or places that the loan could go wrong, there still is likelihood that a person can sufficiently research into his/her own situation to be able to calculate whether or not to use a loan as leverage - and without knowing the potential borrower's situation, the answer is not obviously one way or another.

[Bhig Daddy]

I wouldn't do that and I wouldn't even advise anybody to do that, Bitcoin has zero guarantee and your debtor might even run inpatient, It could also pay off for you. So it like placing your fund on bet, anything could happen, we no fortune tellers.😃😃

[Lanatsa]

I wouldn't do that and I wouldn't even advise anybody to do that, Bitcoin has zero guarantee and your debtor might even run inpatient, It could also pay off for you. So it like placing your fund on bet, anything could happen, we no fortune tellers.😃😃

If you do have other sources of income which you could able to repay those debts then i dont see something for it to be wrong but it would be good that you do make yourself out from debt or loans and much better if you

do make use your own savings or funds on making out investment and dont stress out yourself on paying up something because you have taken some loan earlier but there are instances or situations which cant be avoided
for you to do so because not all the times we do really have that money to invest on thats why taking up some loan would be our last resort or chance.

[nur rochid]

I wouldn't do that and I wouldn't even advise anybody to do that, Bitcoin has zero guarantee and your debtor might even run inpatient, It could also pay off for you. So it like placing your fund on bet, anything could happen, we no fortune tellers.😃😃

If you do have other sources of income which you could able to repay those debts then i dont see something for it to be wrong but it would be good that you do make yourself out from debt or loans and much better if you

do make use your own savings or funds on making out investment and dont stress out yourself on paying up something because you have taken some loan earlier but there are instances or situations which cant be avoided
for you to do so because not all the times we do really have that money to invest on thats why taking up some loan would be our last resort or chance.

I think it all depends on the situation and condition of each individual. If by borrowing it doesn't cause a problem with our finances because we may have spare funds to pay it off if something bad happens, it might not be a problem. especially if the moment is right for that time, for example the price of bitcoin is experiencing a discount, with knowledge of crypto, then this cannot be called gambling. in contrast to us rushing to buy without good knowledge, and without good calculations too, then this includes gambling, where the risk is big.