Bitcoin Investment: Good Debts vs Bad Debts

[YUriy1991]

About Borrowing money to invest in Bitcoin can be classified as good or bad debt in my opinion but it depends on individual circumstances and risk tolerance. If borrowed funds are used to invest in Bitcoin with a long-term perspective, and the individual has a solid plan for managing the risk, then it can be considered good debt.

However, if borrowed funds are used to make speculative investments in Bitcoins without proper understanding of the risks involved, then it may be classified as bad debt. Self-assessment of your financial situation and risk tolerance is considered important before making any investment decision.

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[Swordsoffreedom]

In my opinion, being in debt and borrowing money means bad even though we use it for important things. Because debt means we have to pay the borrower someday. But bad doesn't mean we'll never borrow, as long as we dare to take risks, we can borrow because sometimes in life, to be successful, you have to step out of your comfort zone and do things that many people dare not do to achieve things no one has. Success requires trade-offs, but make the right decisions on a case-by-case basis.

[Dr.Osh]

depending on the situation. If you are looking for a loan but you can repay the loan with your salary, and want to invest large amounts of Bitcoin, that's fine. it might be called a risky investment, but the benefits can also be very large. it might be a good investment.
However, looking for a loan that you can't pay off your monthly salary, and investing in bitcoin which is highly volatile may be a bad decision. that's because when the development of the bitcoin price doesn't match your expectations, then you won't be able to pay the loan you have. it will only hurt you. it is a very big risk.

[slapper]

Nothing is set in stone when discussing the borrowing of funds for expenditures. It's possible that some of your business ideas will skyrocket in popularity while others will do nothing but drain your resources. How much money you want to make, and how much danger you're willing to accept, are the deciding factors.

Plus Bitcoin? That wild individual is akin to a hyperactive roller coaster. It has the potential to make you extremely wealthy or completely ruin your finances. Discover the potential hazards and think carefully about them. If you're in it for the long haul and have a strategy, I think it could be a smart idea to take out a loan to participate in the Bitcoin wave. But if you're looking for a fast way to cash in, you might want to reconsider, amigo.


You should weigh the potential benefits against the potential drawbacks before approaching a financial institution for a loan. Remember that shopping is more of a marathon than a sprint. Don't lose sight of why you're doing this, and keep moving forward.

[lovesmayfamilis]

Any debt is a lack of freedom. Do you like to get up every morning and enjoy freedom? So any debts always land the debtor. We cannot know our future, no one is insured against anything, but having borrowed, we are confident that we can make a profit, or repay debts on time, we can make a mistake in our plans.
I don't see the need to always be indebted to someone. Therefore, I prefer to live on what I have and invest only my own money. It may not be the best strategy, but feeling like you don't owe anyone is much calmer for me.

[o48o]

There are bad debts and there are good debts. Bad debts- loaning money to buy a car that won't be used for business ( Uber, Bolt). Loaning money to buy a pair of shoes, clothes, a piece of furniture etc.

I see some of these things as profitable investments as well, buying good shoes is just benefiting someone's health and so he/she can work more efficiently. And when they are good enough, they can be repaired and by doing that the, this person saves money. Investment doesn't need to pay back directly, we also need people to be able to enjoy enough to be able to work.

Good debts - loaning money to purchase something that would appreciate in value over time. Real estate, precious metals, commodities etc.

Depends. It wasn't a good idea to buy estate from invaded areas of Ukraine for example. precious metals you have to store in somewhere and be sure that place is guarded well enough.

They say poor people have bad debts and rich  people have good debts.

I would say this is just simplifying things. Investing in general is wise, but that doesn't mean every method of investing suits everyone.

One of the popular pieces of advice you'd hear in the Bitcoin space is to never borrow to invest in it.

Despite the volatility, our hope is that Bitcoin will appreciate in value.

This is why we invest literally in anything. But we shouldn't be only focusing on investing in monetary value. Investing life worth living is valuable as well.

Would you classify borrowing money to invest in Bitcoin as good debt or bad debt?

I wouldn't borrow money for investing in something as volatile as Bitcoin, no. I would use my own money and not be greedy wanting more then i can afford.

[ethereumhunter]

There are bad debts and there are good debts. Bad debts- loaning money to buy a car that won't be used for business ( Uber, Bolt). Loaning money to buy a pair of shoes, clothes, a piece of furniture etc.

Good debts - loaning money to purchase something that would appreciate in value over time. Real estate, precious metals, commodities etc.

They say poor people have bad debts and rich  people have good debts.

One of the popular pieces of advice you'd hear in the Bitcoin space is to never borrow to invest in it.

Despite the volatility, our hope is that Bitcoin will appreciate in value.

Would you classify borrowing money to invest in Bitcoin as good debt or bad debt?

The first thing you should consider before borrowing money is how you can return the money. If you can pay it back and there won't be any problems, it's probably the best debt you can take. And if you want to invest in bitcoin by borrowing money and you're sure you can pay back the money every month, you can do that. But if you are not sure you can return it, it is better not to risk investing in bitcoins using free money that is not used for anything. It will be much safer for you and you can focus on investing in bitcoin without considering returning the loan money. And I also suggest not borrowing money if you want to invest in bitcoin, considering that the price of bitcoin goes up and down, which can make it difficult for you to repay the loan if you don't have other sources of income.

[robattfield]

Borrowing money to invest in bitcoin I see is not the root of the problem of creating bad debt or good debt. Because in any financial market I've seen there's volatility, and the OP is just looking in one direction by giving only one side of the issue. And I've found that when someone has accepted debt to serve their goals, they're theoretically taking the risk they're going to take. The loans are assessed later from the bank they don't care much whether it's bad or good, because they are creditors they will always find ways to benefit them.

[SOKO-DEKE]

I don't abide by the rules of borrowing money to invest in Bitcoin because it involves risk due to its volatility, and nobody can predict 90% of what will happen in crypto industry. Debt does not have two names—whether you borrow to invest or borrow to buy yourself necessary things, it is still debt. But all I know is that borrowing money for doing anything that is not an emergency is not a good idea.when you borrow money to invest Bitcoin and it time to return the money to the owner and the Bitcoin market price is down, you will be frustrated and you will ended up sell it low at price in other to pay back your debt. As for me i can't borrow money for things expect I have emergency issues to solve.

[Altryist]

There are bad debts and there are good debts. Bad debts- loaning money to buy a car that won't be used for business ( Uber, Bolt). Loaning money to buy a pair of shoes, clothes, a piece of furniture etc.

Good debts - loaning money to purchase something that would appreciate in value over time. Real estate, precious metals, commodities etc.

They say poor people have bad debts and rich  people have good debts.

One of the popular pieces of advice you'd hear in the Bitcoin space is to never borrow to invest in it.

Despite the volatility, our hope is that Bitcoin will appreciate in value.

Would you classify borrowing money to invest in Bitcoin as good debt or bad debt?

Even if you bought real estate or precious metals on credit, then you cannot just wait for your investment to bring you a profit, a loan or money as collateral means that you will need to make monthly payments. And if with real estate you can rent it out to cover part of this payment, then with precious metals this will not work.

Smart debt only sounds nice, in fact it is not so easy to implement and may require quite long repayments. And if it were that easy, then everyone could do it.

[SirLancelot]

I do not distinguish bad debt or good debt because that is a debt that I have to pay at all costs. Borrowing money is not recommended because you will be in trouble if things don't go according to your plan. But if you're calculated and ready to take the risk, borrowing money to start a business or invest in bitcoin is not a bad idea.

I also used to borrow for business and failed, so I do not support anyone borrowing money to invest, but I would not ban someone if they know what they are doing, and even if they fail, they still have a different way of handling it. Borrowing money is not the problem.

A good debt must be a debt which brings a positive result on your business but a bad debt is when you fail and you will now have a hard time paying the debt. It will be a good idea to start a business first using our own money and observe how it goes. If it runs well then that must be a time for you to borrow money in hopes of maximizing your profits but the borrowed amount should be within our reach because unexpected losses can still happen.

You failed maybe because you did not calculate your risk? What kind of business was that anyway? But no doubt that building a business is not easy. There are still other ways to earn like for example in investing in Bitcoin. Any small amounts can do here so there is no need for us to borrow money.

[Finestream]

Before you borrow money, you should make calculations and be certain that you will be able to meet up to pay the loan before the expiration time. That is what I can define as good debt.

Although, buying assets and properties that their price and value appreciate with time is a wise choice.

If you are taking loans just to increase your profits from an investment, and you know you are able enough to pay, that could be a good debt. But I believe if you can save first before you decide to invest, that will be a lot better. That is to avoid yourself from being pressured to pay the interest or the whole amount in times your investment is not working well or is not making consistent profits.

[imamusma]

There are bad debts and there are good debts. Bad debts- loaning money to buy a car that won't be used for business ( Uber, Bolt). Loaning money to buy a pair of shoes, clothes, a piece of furniture etc.

Good debts - loaning money to purchase something that would appreciate in value over time. Real estate, precious metals, commodities etc.

They say poor people have bad debts and rich  people have good debts.

One of the popular pieces of advice you'd hear in the Bitcoin space is to never borrow to invest in it.

Despite the volatility, our hope is that Bitcoin will appreciate in value.

Would you classify borrowing money to invest in Bitcoin as good debt or bad debt?

It should be divided in two versions and it all depends on who did it.

First: you can make a loan to invest in bitcoin, but you have other income out there to pay back your loan regularly instead of expecting a return on your investment. This can be referred to as good debt.

Second: Your debt will be classified as bad debt if you only expect return on investment to pay off the loan. Price volatility won't guarantee you get timely return, but there's chance you'll get default loan when the price doesn't meet your expectations.

[Pujangga]

If we want big profits of more than 100% in a year or less then the best choice is bitcoin investment, there is no investment that is higher in providing profit opportunities than cryptocurrencies, for example gold which is around 8% per year, while other investments such as property sometimes lose money because of demand which decreased.

[deathcode]

I don't abide by the rules of borrowing money to invest in Bitcoin because it involves risk due to its volatility, and nobody can predict 90% of what will happen in crypto industry. Debt does not have two names—whether you borrow to invest or borrow to buy yourself necessary things, it is still debt. But all I know is that borrowing money for doing anything that is not an emergency is not a good idea.when you borrow money to invest Bitcoin and it time to return the money to the owner and the Bitcoin market price is down, you will be frustrated and you will ended up sell it low at price in other to pay back your debt. As for me i can't borrow money for things expect I have emergency issues to solve.

I agree more with the opinion you convey. Debt is still debt and what the OP conveyed regarding there is such a thing as good debt or bad debt is just a breakdown of terms based on the purpose of the debt.
That's right, we should never try to get into debt if we are not in an emergency or in a state of urgency because we have no money to solve problems that must be resolved right away.
I think if someone is willing to go into debt for the purposes of investing in crypto it is not because of an emergency or urgent situation but it is pure greed which is very reckless and very unrealistic.
Crypto investment is certain for the long term, what happens when the debt matures and must be repaid immediately when it turns out that the crypto price is still below that of course it will add to our debt to cover our previous debt. It's too risky for our comfortable life.

[lionheart78]

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It is a good debt if we borrow money in an event where:
4.  We have the capability to pay the borrowed money regardless we sold our Bitcoin or not.

It is considered a bad debt if:
4.  Incapable of paying the borrowed money which can force us to sell BTC at a loss to be able the pay the debt on time.

Exactly. This alone is already a huge difference between rich and poor people. By poor you mean those who are on lower class household and below right? if that's the case, thinking about getting in debt alone is already bad. Here's an example based on my experience and from the neighborhood I have in this country, for those who are earning below minimum wage, having a debt is like digging your own grave, coz you have to accept huge interest. Most banks here in my country will only offer you a small amount of loan which someone can afford based on their wages, and what can a little amount of money do? nothing, mostly it can only be used for groceries worth 3 days or 2. If the lower-class person or below wants to borrow reasonable amount of money, he/she will have to go to private loan sectors and accept their unreasonable terms and conditions specially in interest rate, which will only lead them being burrowed by debt day after day. This is one of the reasons why most of my neighbors wanted like a get rich quick scheme, since if they'd wanted to borrow money, they'll have to pay the amount and interest in fast manner and the faster they pay it off, the easier for them to get out of the crisis.

Getting in debt for me varies from person to person and more importantly varies depending on where the country is. Maybe the definition of HOBO in your country is already what we considered lower class here, how much more the poorest of the poor? Thinking about investing in that situation is no longer in their options.

For me the status of a person having debt is not an indicator to say it is bad or not.  As long as the gain outweigh the losses, I can say it is a good debt.  Like for example, if a poor person borrowed money to sustain his basic needs, that is already a good debt because it is for his own survival, and the money does not go to waste because it was spent for his basic needs.  We cannot improve our status of living if we are starved to death.  As long as the person is living, he still has hopes and capability to improve his standard of living as long as he is eager to improve himself.

In the matter of borrowing money for investment specifically Bitcoin, though many say that it isn't advisable to borrow money for it, I say, it is advisable if it will bring a positive net gain after the deduction of borrowed capital and interest.

[ivankoh]

Good debt and bad debt are two categories in the debt process. It's still a literal debt. Borrowing money to invest in bitcoin is not so special in terms of business potential and exploring investment opportunities. Personally, I think borrowing money to invest in bitcoin is not advisable but I am not saying it is impossible, it means that each person has their own conditions, business strategy, investment opportunities that come with the timing and ideas. Only when you have built-in multiple sources of income and fully understand that the debt to invest in bitcoin is still within your financial control will you be able to balance from other sources of income to be ready to meet your level to repay it on time. That's still a good plan.

[Hamphser]

There are bad debts and there are good debts. Bad debts- loaning money to buy a car that won't be used for business ( Uber, Bolt). Loaning money to buy a pair of shoes, clothes, a piece of furniture etc.

Good debts - loaning money to purchase something that would appreciate in value over time. Real estate, precious metals, commodities etc.

They say poor people have bad debts and rich  people have good debts.

One of the popular pieces of advice you'd hear in the Bitcoin space is to never borrow to invest in it.

Despite the volatility, our hope is that Bitcoin will appreciate in value.

Would you classify borrowing money to invest in Bitcoin as good debt or bad debt?

Good debt if its been applied or been used on buying assets or having put up in investments on which you could potentially be able to make income or make money which i do consider for it to be worth.
This is actually depending on someones approach because not all would really be that sensible in towards their actions on which they would really be making some loan on buying up things that they do like.
Like purchasing a car, some goods, houses or other stuffs which for them to end up on having that monthly mortgage.The worst thing on here is that they do really end up on spending the amount
which is more than with their income and this is where things becomes more hard where you would be finding yourself been fucked up with debt if you cant pay it in time.

[goaldigger]

Borrowing money to invest is a bad debt to me especially with Bitcoin since its very volatile and no assurance about making profit. For an active trader it can be a different scenario, you should have more knowledge about this so you can know if you can afford to have such a loan just to support your trading activities. Analyze your capacity to pay as well, and manage your risk.

[dothebeats]

There is one lesson about debt that one of my friends taught me: use it in your favor. He literally got a credit card on the intention of increasing his limit and building up his image on the bank. He did this for 5 years, and now that he has a black card, he buys cars through credit cards and sells them for a profit and does the same thing over and over again. He still lives frugally, although he can easily retire comfortable in an island and enjoy life with the money he's gotten. He's still doing it now though he has since expanded his ventures somewhere else. That's the only 'good debt' that I can think of that lets the money work in your favor, and I'm planning to do it too. There's always the risk of flopping on your items, but if you have the right connections and the right audience it's pretty easy to build bank just like what this friend of mine did - and he earned it through hard work and great social skills.