Borrow fiat with your Bitcoin and never sell

[JohnBitCo]

Also remember that once you borrow fiat, you are giving the lender opportunity to make way much money using your collateral (Bitcoin) on top of charging you very high interest rates. If anything goes wrong and you default the loan, your valuable Bitcoins are gone.

I would rather sell a small portion of my bitcoins for survival, while I keep the rest for the future.

I would never like this idea of putting bitcoin as a Collateral. You can make money with bitcoin by selling it at high and buying back at high, i don't like this idea  of handing over your bitcoin to someone else and getting fiat money for that. What if the lender refused to return or does a scam or something ? the bitcoins are gone forever. 

[iamsange]

I think it’s best if you decide to sell a small part of your coin and use that, so you don’t lose and you can still make profit. Borrowing isn’t a good idea, no matter what, but each to their own.

Borrowing money from other parties is only more suitable for those whose profession as entrepreneurs are so that they can calculate their own profit for each month after deducting the installments that must be paid to the borrower. So this is definitely not suitable for those who do not have a particular business or company to turn their money through the products they produce.

[Ozero]

I think it’s best if you decide to sell a small part of your coin and use that, so you don’t lose and you can still make profit. Borrowing isn’t a good idea, no matter what, but each to their own.

Borrowing money from other parties is only more suitable for those whose profession as entrepreneurs are so that they can calculate their own profit for each month after deducting the installments that must be paid to the borrower. So this is definitely not suitable for those who do not have a particular business or company to turn their money through the products they produce.

Quite right. An interest-bearing loan or credit can be successfully used by businessmen when they have a regular income, but there are temporary difficulties in obtaining and distributing them. In other cases, the risk of loan default increases. This risk is multiplied if there is a cryptocurrency in this scheme, because no one can plan its price movements in advance. In addition, betting on the constant rise in the price of bitcoin is simply unreasonable. No one can know what will happen to the price of bitcoin in the next few years. In any case, such a risk is not for me.

[Bobrox]

I think it all depends on market conditions and your own wealth distribution. There are  men who made millions, from Bitcoin and there are men who invested at highs and sold at lower, because they could not stand the ups and downs. Borrowing money when the market is going to stay cool is a good idea. One can again take back their Bitcoin when the bull run starts...

Borrowing money when bitcoin still drop is good ideas but have another risk when using fund from loan to invest in cryptocurrency, some time out our controlling when bitcoin have another dip price after investing in lower price, need to find new way how to pay borrowing money used for investing in bitcoin. If have ability with lower loan interest I think worth used for investing from borrowing money but can't guarantee with your profit always.

Great opportunity looking on bitcoin still drop right now used borrowing money for investing in bitcoin, maybe one or two months later when bitcoin going up can pay borrowing as soon possible and not to be greedy used all borrowing money re investing again in bitcoin after reaching profit.

[gunhell16]

If you ask me OP I think you didn’t think this through. Let’s say I follow your instructions and decide to borrow Fiat using Bitcoin and at the point of be running the process bitcoin is 20k dollars and that’s I get 20k dollars Fiat. Let’s say at the time of repayment bitcoin goes up to to 30k how would the transaction be, and if who I borrowed the money from is knowledgeable about crypto-currency then it would be a major problem.

^ I think you did not understand as OP said, the BTC here is just collateral, whatever happens to the price still the BTC is the collateral.
Probably the point is, while BTC is at a low price or you know that your BTC will grow more in the future, instead of selling it directly to exchange, just use it as your collateral and borrow fiat which is fiat amount will remain the same as what you borrowed.
However, the problem here is where you will find a service that allows BTC as collateral and make sure it should be trusted.

That is the real question, whether the person who will lend OP fiat will agree to accept Bitcoin as collateral. Maybe, if the lender has an idea for bitcoin and believes in it, he will agree without hesitation.

But if the lender does not have enough knowledge about this, he will likely have second thoughts or he may not lend because he is hesitant about the bitcoin collateral.

[TribalBob]

I don't get you. Based on what I understood you're planning to borrow fiat once you've got enough bitcoin. Does this mean you're planning to borrow money placing bitcoin as the collateral. For borrowed money you need to pay regular interest.

Maybe this can turn to be effective, if the borrowed money is invested on something that brings you regular income.

Yes, if I need something, I would borrow the money instead of selling the Bitcoin to purchase it. Michael Saylor talks about this. If I have to pay 5% interest, but Bitcoin’s price raises over 5% a year, then I would be making money. If I sell the Bitcoin for fiat, then inflation will eat up that money. This is apparently what everyone from Elon Musk to Donald Trump does. They don’t actually have any money. They just have property, and borrow against the property because the property is more valuable than the cash.

maybe I'm one who is not the same as you, I'd better sell my bitcoins if I need money, especially since I'm just a casual worker, I save bitcoins for savings if I need money, compared to borrowing money with 5% interest, it's better if i release my btc, than i have to have debt and plus 5% bonus

[BobK71]

I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.

This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.

I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.

Does anyone else plan on doing this?

As the market condition is very dip form the all time high, borrowing is a good decision if needed. Since the OP is saying that he doesn't have to pay any tax or anything extra. In that case you can borrow. But always thinking positively, borrowing or increasing investments can sometimes lead to major disasters.

[AicecreaME]

Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.

[Jeger.Kiting]

In situations like this, there is always some risk involved, and if you borrow fiat dollars as security for this, you will have to pay interest on the borrowed dollars. Platforms for financing are virtually astounding right now. In addition to being centralized and in control of your money, this business also has the potential to file for bankruptcy at any time, meaning the owner could depart at any time without warning. When the time comes, your Bitcoin will be destroyed, there is no chance for you to use the Bitcoin provided as collateral, and it is lost forever. Therefore, give these things some thought before you do them to avoid regret.

[ethereumhunter]

snip~

Indeed, there will be about 4 years before the crypto moves into a bullish season. But in those 4 years, there will be ups and downs that will frequently happen so you can profit from trading. That is why you should be able to analyze well before starting to trade to make a profit. It may be difficult at first but if you keep learning to analyze, you will be able to trade well. What you have to think about is how you pay off the loan money, especially if you don't have an income every month.

Say borrowing money has to be repaid every month while borrowing to trade crypto is quite risky when you are not a really reliable trader. I don't recommend borrowing money to trade crypto, because I personally experienced it. An experience where I have done both options, namely borrow to trade crypto and borrow to invest. But if there is no interest on the loan, then you are not required to pay per month then you can invest. However, are there institutions that lend money without interest? certainly not !! because the borrowed money must continue to flow. Unless you borrow money from a rich relative and he doesn't demand you pay monthly.

I dare say that because of experiencing both options as I said. As a result, I borrowed about $1000 from my brother to buy Bitcoin ($6100) if I'm not mistaken in 2020 in March and it didn't take 4 years to release it because one year later it was bullish at around $58000. Again that doesn't mean it's effective for everyone, it's just that if you have enough money in savings to buy a few sats then never borrow.

Indeed it is a risky action but it will return to the respective traders because if a trader already wants to try to focus on the crypto market and borrow some money, he will continue to work hard to achieve it. Before borrowing, you should consider it because it relates to many things. Don't let you get into trouble later when the time for payment arrives.

You are lucky if after you borrow from someone else, the price of bitcoin can increase dramatically and of course, you will get a big profit so you can return everything at once. But not many people can be like you because I met some friends who made the mistake of borrowing money to invest in crypto or to trade but weren't looking for more info on how to do it properly.

[AmoreJaz]

In situations like this, there is always some risk involved, and if you borrow fiat dollars as security for this, you will have to pay interest on the borrowed dollars. Platforms for financing are virtually astounding right now. In addition to being centralized and in control of your money, this business also has the potential to file for bankruptcy at any time, meaning the owner could depart at any time without warning. When the time comes, your Bitcoin will be destroyed, there is no chance for you to use the Bitcoin provided as collateral, and it is lost forever. Therefore, give these things some thought before you do them to avoid regret.

to be honest with this situation, i won't do what the OP is planning to do. unless, he has other resources that can back up his loan. also, when it comes to fiat loan, usually, you need to pay interest for certain period of time. do you think it is worth paying those interests while waiting for your bitcoin to get a good value? in this market, you'll never know what comes next. very risky if this is the only funds available to you. you may end up paying more because of the interest incurred during your loan term. and suddenly, the lending platform got away with your btc collateral, not only you but all the others who trusted their site! that's what you call bad fate.

[Pierre 2]

Yeah this was obvious exploit in monetary system. Under heavy inflation its best to borrow lot of money to buy precious things like cars, houses, gold where you can get direct advantage. Bitcoin is now another option. If you have wage, its best to borrow money, buy Bitcoin in bottom, cover your borrowed money with your wage, and take profits from Bitcoin. Its easiest get rich quick method I can see yet, its very risky. Never lose your job unless you become millionaire!

[Eternad]

Yeah this was obvious exploit in monetary system. Under heavy inflation its best to borrow lot of money to buy precious things like cars, houses, gold where you can get direct advantage. Bitcoin is now another option. If you have wage, its best to borrow money, buy Bitcoin in bottom, cover your borrowed money with your wage, and take profits from Bitcoin. Its easiest get rich quick method I can see yet, its very risky. Never lose your job unless you become millionaire!

Feds is increasing interest rates on loans and other commodities. I doubt that this is still a food idea since the plan is use Bitcoin as collateral but what if the interest rate of the loan increased while Bitcoin price decrease since its the direction of the market. The Op might end up lose all of his BTC holdings while still pays the interest of the loan since the value of the property is half the amount of Bitcoin while he didn’t consider paying the interest of his loan to his plan.

[TheUltraElite]

Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.

It can be managed without taking a loan but some people have the habit of taking a loan to start out on trading and not think of the consequences of a debt.

Few people actually want to start with their own capital directly kotha ven though they have to pay more from their pocket in case they lost money.

Cycling between the bull and bear cycles is what leads to good profits but slow indeed. Still it is the safer bet than taking a loan and going for trades with high risk than profit.

[angelomedhur6895]

This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.

[Sebas.tian]

Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.

Yes, that is the best way to overcome such challenges in the community,because borrow money from the bank or clubs to invest on bitcoin is not advisable to bitcoiners than to invest the little capital you have on bitcoin and wait for the bullish season to come before you can sell to make a huge income from your investment. Since we are still experiencing bearish market, I think any amount of money you invest on Bitcoin now, it will help you in future when the price of Bitcoin hit higher soon before you can sell to settle some debt you own than borrowing money to buy Bitcoin.

[CryptoHeadlineNews]

I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.

This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.

It may seem like a smart idea by using Bitcoin as collateral for half of its worth in fiat currency, but to me, I'm the type of person who doesn't encourage borrowing at all, because I know how it feels to borrow, how it could put you in the state of unrest, sleepless night and makes you uncomfortable until finally paid off, as nobody can predict tomorrow. And one thing to always consider about borrowing is the interest rate, i.e is the interest rate high or is it low, and can I afford to pay such a rate or e.t.c. So for me, I rather prefer to be patient, save consistently and when I have enough funds, embark on that project I have in mind than borrow, just for peace of mind.

[Techkoy407]

I suggest, do not occasionally invest with borrowed money, it is very risky,
you do not know what the future investment will be like, even though bitcoin is quite promising, but you have to stay on guard for the possibility that is not good.

because if you invest or buy bitcoin with borrowed money, it will make you uncomfortable with the investment,
because there will be high anxiety and worry,
so my advice, invest with cold money to be more calm.

[KaliLinux]

I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.

This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.

I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.

Does anyone else plan on doing this?

If you do have enough Bitcoin in your possession this might mean you might not need to borrow because I would believe you have had enough to invest in that amount of Bitcoin. Why would you have to borrow when you know you would still be paying interest on the amount you borrowed or maybe you want to invest that cash in another profit-generating investment plus let us not forget that there is nothing wrong with taking profit from what you have invested over time. You can not HODL your Bitcoin investment forever without taking profit for yourself then why have you invested in the first place?

[justdimin]

Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.

Yes, that is the best way to overcome such challenges in the community,because borrow money from the bank or clubs to invest on bitcoin is not advisable to bitcoiners than to invest the little capital you have on bitcoin and wait for the bullish season to come before you can sell to make a huge income from your investment. Since we are still experiencing bearish market, I think any amount of money you invest on Bitcoin now, it will help you in future when the price of Bitcoin hit higher soon before you can sell to settle some debt you own than borrowing money to buy Bitcoin.

Depends on what type of loan you are getting. I talked about this before, since the price is low right now, if you could get a loan that you could repay back yourself then that’s not a bad loan. What is a bad loan? If you get it, and then you buy bitcoins with it, and you have to sell your coins to repay it back then it is a bad loan and you shouldn't take it.

But if you take it, and then you end up with paying it back without selling your coins, that means it was a good loan because you paid it back AND you have your coins staying. That’s a good loan and you should consider it. Learn the difference and you should be doing a lot better in the long run.