Bitcoin Investment: Good Debts vs Bad Debts

[lizarder]

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.

There must be a mathematical calculation before you try to take a loan, in the category of poor and rich people the need for loans will be very different in the essence of their use. I mean rich people don't take loans to buy houses or cars, but to expand the business they manage. Poor people take loans to fulfill their lifestyle, this is where the biggest mistake lies in the wrong loan category.

Borrowing money for positive needs or to support business and investment is not a problem, as long as there are considerations that can be adjusted to cover monthly costs when the credit is due. If you think it's customizable and have a backup method, then just consider taking this opportunity.

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[uneng]

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

Well, in my opinion it's bad debt to borrow money to invest in bitcoin, because even though it's a profitable investment on long term, we don't know for how long you are going to need to hold your coins until bitcoin gaining more value. In other words, we can't specify exactly for how long you are going to need to wait until selling your BTCs for profit, what is an inevitable calculation when taking a loan.

Loan only is a viable alternative when you are able to determine how much profit you are going to make in a daily or monthly basis with the money taken, so you can schedule the repayment most accurately as possible.

[Mauser]

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?

Hope alone is not a guarantee that the price is going to rise long term. In my opinion it's a bad idea to buy any kind of risky assets with borrowed money. There is no guarantee that it's going to pay off and we face a lot of risks in the meantime. A loan usually requires us to make periodic interest payment, and with bitcoins we don't have any income if we don't sell. We could be forced to liquidate some coins at unfavourable prices. When it comes to real estate it's a different story, because we usually live in the house or apartment and would need to compare the monthly loan cost to rent payments. It's not like we could avoid living anywhere for free, the opportunity cost are quite high. So buying any crypto currency with a loan is bad debt in my opinion.

[bitzizzix]

Before taking a loan, what we have to do is look at our circumstances and if we have a steady income or a steady job and a supporting salary, I don't think it matters, but it depends on the purpose of the loan.
if only for the desire for something and unprofitable for what, unless it really matters.
and borrow if it's for a business that makes money by doing research and also doing calculations very carefully before committing I think it's the choice of many people and they have the income to make payments and that too with adjustments.
but for bitcoin i suggest better do what you can with the money you can afford to lose i think its a very ideal way and do it regularly and consistently for long term and increase when you make more money and its very good than you do loans, and makes you dizzy because installments still have to be paid and also don't care about your situation.

[Paul Pogba]

Investment, of course, aims to make a profit, but we must remember that investors are not always successful and profit from bitcoin, the thing we have to understand is that bitcoin is always at risk and there is a chance to drop even though at this time it looks like the price will continue to rise, mind control and being ready to lose is a thing which we must have.

[virasisog]

We don't consider it a bad debt because we can really make a profit from Bitcoin investment but rather a risky debt because we don't know how far will the volatility of Bitcoin could take us. It will be a risk to borrow funds to invest because there's no assurance that you could pay back on your promised date since there's no guarantee that Bitcoin could strike high on our expected times. It will be better if we'll invest our own money so as much as possible, we have to save to have investment capital.

[Wong Gendheng]

The presence of Bitcoin can certainly be a good solution to earn income, if we want to get a big profit then the easiest thing is to save for the long term, but be aware that currently many exchanges have the potential to be a scam, it's better to save it in a wallet that has full control or private Key.

[lixer]

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.

That's probably true and I also believe that debts are like a burden on your shoulders, no matter how big or small, if you are indebted, you can simply not stay happy at all unless you are in the process of repaying the debt gradually. I believe no one would like to have such feelings of burden and having no freedom, but it's just that some people think they can make things in their lives better if they borrow some money, which isn't always correct.

I believe, just as you said, having your own investment even if its too small and doesn't generate so much profit, you would at least have peace of mind, and you can enjoy your life without much stress and tension.

[Vaculin]

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?

I’m not aware that there are good and bad debts really, lol. Well, borrowing money to invest in bitcoin is still a bad debt, because if you’re a responsible investor, you would not borrow in the first place if there is still no guarantee to succeed. You just have to take your time saving for your investment, and when you think your funds are enough, you’re mentally and emotionally ready, then decide to invest. But never be greedy enough to consider bitcoin as a get rich quick. Bitcoin is a long term investment so you have to be more patient and be more persevere so you can succeed in your bitcoin investment in the end.

[Newlifebtc]

You can't say bitcoin investment is a bad debit , the investment is basically on what you understand and what you know of bitcoin, so therefore I believe bitcoin investment have to do with many things of advantages, basically someone who is investing in bitcoin have it mindset or plans it have in bitcoin

[Kasabus]

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.

If you have a stable main source of income, then it’s not a bad idea to borrow a minimal amount to start your investment. As long as you’re capable to pay, then that won’t give you hassle. But always know that the best way to invest is through your spare money. So that if you lose and and goes wrong with your investment, at least you never have to worry paying the amount you have used up.

[AmoreJaz]

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.

If you have a stable main source of income, then it’s not a bad idea to borrow a minimal amount to start your investment. As long as you’re capable to pay, then that won’t give you hassle. But always know that the best way to invest is through your spare money. So that if you lose and and goes wrong with your investment, at least you never have to worry paying the amount you have used up.

great, if you have other means to pay for your debt. because the market performance of btc has no definite movement or future. we can only speculate that it has bright future because of the adoption it is gaining from the community.
i can't label it as good or bad debt, because at any angle, it is still a debt to be paid for. but much better to borrow money to buy btc if you have other sources of income.

[wxa7115]

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 is not as simple, different loans have different interest rates, for example the interests you have to pay for using a credit card are enormous, while the interests you have to pay when you get a mortgage can be very low.

If you could get a loan with very low interest rates from a bank and you did so right before the bull run then such movement could make some sense, even if I still consider it to be too risky, however if you have to use a credit card to do it then you should forget about this.

[Semar Mesem]

Bitcoin investment is very risky, don't invest because you don't study the risks that can be obtained first, many people are poor because they sell assets to buy bitcoin but after buying the price drops, as long as we don't know the risks let alone only think about profit then we will never be successful and get big profits.

[Joshapat]

You can't say bitcoin investment is a bad debit , the investment is basically on what you understand and what you know of bitcoin, so therefore I believe bitcoin investment have to do with many things of advantages, basically someone who is investing in bitcoin have it mindset or plans it have in bitcoin

Most people will say good or bad if he loses or profits, as we know that bitcoin is a high-risk type of investment, price movements are like a roller coaster so if we know the risks we can get, we will immediately panic when we see prices drop.

[Baoo]

Bitcoin investment is very risky, don't invest because you don't study the risks that can be obtained first, many people are poor because they sell assets to buy bitcoin but after buying the price drops, as long as we don't know the risks let alone only think about profit then we will never be successful and get big profits.

That’s definitely true. Unfortunately, poor and greedy people are able to lose everything , some bought their cars , houses and took loans just to sell bitcoin and expecting *2 profit in short period. These people have one of the worst types of mindset. They be making dumb mistakes and taking unplanned risks without strategy and enough knowledge.

Plus, it is really necessary to find sources of money with Bitcoin payment or crypto stable coins depending of what skills and knowledge do you have. In addition to that, if you’re into crypto field and specifically Bitcoin, you must be mentally strong and patient without these two characteristics, you cannot succeed.

[harapan]

Never borrow money for consumption. Whenever you're borrowing money it should be to acquire an asset. I know this is not very practical because emergencies might arise where you will have no other option but to take a loan but still always have it at the back of your mind that borrowing for consumption is not right.
However, before you borrow for an investment you have to carefully analyze that investment. Analyze the worst case scenario and use the "risk-reward" concept. Also what do you fall back on if the investment fails, you know you still have to pay back the loan irrespective of the outcome of your investment right? So what do you do then that the investment has failed, how do you pay back the loan.

Personally, I won't borrow to invest in bitcoin (this is not a professional financial advise, just my opinion) and you don't need to. That's one reason that puts bitcoin high above other assets. You don't have to break the bank to make an investment. You can start small and see how things go from there.

[soramon]

The best option is having no debt. I dont really like have a debt because it will distract my mind. Especially take a loan for buying bitcoin is not good. Never gambling with something that probably can ruin your life. If the investment is turning to nothing you will end up with debt + loss.

[Davian144]

You can't say bitcoin investment is a bad debit , the investment is basically on what you understand and what you know of bitcoin, so therefore I believe bitcoin investment have to do with many things of advantages, basically someone who is investing in bitcoin have it mindset or plans it have in bitcoin

I think your statement is quite appropriate in terms of Bitcoin investment because Bitcoin is appropriate to be considered a good asset and of course also very good as a long-term investment for everyone who understands Bitcoin. This has been proven enough so far where there are many countries and certain parties who see Bitcoin as a good investment so they also invest in Bitcoin and there are even countries that have adopted it into legal payments.

Most people will say good or bad if he loses or profits, as we know that bitcoin is a high-risk type of investment, price movements are like a roller coaster so if we know the risks we can get, we will immediately panic when we see prices drop.

Profits and losses are two very close parts of an investment and it is clear that they cannot be separated as long as the price of the invested asset always increases and decreases. So it's only natural that there are pros and cons in investing, so these two things must really be understood so that everyone who invests doesn't experience excessive fear. Because it is part of the risk that is always in it.

[CarnagexD]

The best option is having no debt. I dont really like have a debt because it will distract my mind. Especially take a loan for buying bitcoin is not good. Never gambling with something that probably can ruin your life. If the investment is turning to nothing you will end up with debt + loss.

Right. A good debt is a debt that you can afford to pay. Investing your borrowed money in bitcoin is a bad debt because you wont know when youll be able to get the money back. Personally, i borrow money or do installments only for the purpose of maximizing the time value of money. When it comes to cryptocurrency, you should only risk money that you can afford to lose and I dont think that counts borrowed money.