Bitcoin Investment: Good Debts vs Bad Debts

[xSkylarx]

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.

But still, it isn't a bad debt because you are investing it, meaning you will profit from it if you invest it at the right time. It is not like it's our wants that we don't need it; we call it investments or business, just like trading; the problem is just the risk, so it is still including to good debts, but it doesn't mean that you'll take a loan now because it is a sure profit; you should also make sure that it is a calculated risk that you can repay your loan.

[1714752774]

1714752774

[1714752774]

1714752774

[1714752774]

1714752774

[1714752774]

1714752774

[1714752774]

1714752774

[Lorence.xD]

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.

But still, it isn't a bad debt because you are investing it, meaning you will profit from it if you invest it at the right time. It is not like it's our wants that we don't need it; we call it investments or business, just like trading; the problem is just the risk, so it is still including to good debts, but it doesn't mean that you'll take a loan now because it is a sure profit; you should also make sure that it is a calculated risk that you can repay your loan.

There's still no guarantee you will profit in a volatile system of Bitcoin. Even if you invest at a right time but when it changes its value to low then you will have a problem in your debt. That's why its considered as a bad debt, you can't rely your money if its borrowed to a "risk" its like you're saying that invest your debt to a luck. If you can pay it sooner or later, then borrowing money doesn't necessary if you have spare money for investing. He's right its common phrase when trading "invest what you can afford to lose". Maybe it might work to people who's already have lot of experiences and knowledges in loan and trading where he can simply use it to gain money, but if he's really good then he doesn't need to loan since he already have profit to invest. Therefore its still considered as bad debt with the risk that it involved in the situation.

[Mate2237]

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

Yes it is a good debt. Now from explanation, you said, bad debt is meant to buy things that would not bring any value income to the capital amount that has been spent. That it is used to acquire things that do not grow but stagnant even they have value in nature but not increasing.
While good debt is the one you borrow and used it to buy something that will increase the capital which means the money borrowed is not stagnant, it rising and falling investment and that is where bitcoin investment fall into.
Therefore using the borrowed money to buy bitcoin is not a bad debt but people are not advise to use borrowed money to buy bitcoin because of the risk involve in it.

[Kadal Ijo]

A good investment is one that we can fully control, many people save money in banks but when they want to take or transfer they have to wait for a queue and then it requires a very tedious long process, with bitcoin we can send $ 1 trillion or more in a few seconds.

[TheGreatPython]

Now from explanation, you said, bad debt is meant to buy things that would not bring any value income to the capital amount that has been spent. That it is used to acquire things that do not grow but stagnant even they have value in nature but not increasing.
While good debt is the one you borrow and used it to buy something that will increase the capital which means the money borrowed is not stagnant, it rising and falling investment and that is where bitcoin investment fall into.
Therefore using the borrowed money to buy bitcoin is not a bad debt but people are not advise to use borrowed money to buy bitcoin because of the risk involve in it.

Generally, that should also be considered a bad debt since the debt has a certain period after which you will need to repay it or the interest will keep building up, and if you invest the borrowed money in Bitcoin and the price drops and doesn't go up before that time reaches, you can't sell the Bitcoin as they are in loss and you can't pay the debt too.

That is why it is never a recommended practice to borrow money to make any investments, especially if it involves a significant amount of risk like cryptocurrencies. Even if you are planning to do business with borrowed money, you need to have a well-thought plan so you to not turn it into a bad debt.

[Mario Yamasaki]

In my opinion Bitcoin is a good investment and has the potential to continue to grow, the increasing number of users proves that Bitcoin is a future investment that will make us successful and rich. Maybe the price is very volatile but as long as we can be patient then we will profit.

[Tony116]

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.

But still, it isn't a bad debt because you are investing it, meaning you will profit from it if you invest it at the right time. It is not like it's our wants that we don't need it; we call it investments or business, just like trading; the problem is just the risk, so it is still including to good debts, but it doesn't mean that you'll take a loan now because it is a sure profit; you should also make sure that it is a calculated risk that you can repay your loan.

There's still no guarantee you will profit in a volatile system of Bitcoin. Even if you invest at a right time but when it changes its value to low then you will have a problem in your debt. That's why its considered as a bad debt, you can't rely your money if its borrowed to a "risk" its like you're saying that invest your debt to a luck. If you can pay it sooner or later, then borrowing money doesn't necessary if you have spare money for investing. He's right its common phrase when trading "invest what you can afford to lose". Maybe it might work to people who's already have lot of experiences and knowledges in loan and trading where he can simply use it to gain money, but if he's really good then he doesn't need to loan since he already have profit to invest. Therefore its still considered as bad debt with the risk that it involved in the situation.

Bitcoin, gold, or real estate... there is always a risk once invested. Borrowing for investment is not recommended but may also be considered case-by-case. When investing, don't just think about the profit, but think about the risk that we will face, if we can get rid of that loan, even if our investment fails, we may consider borrowing. Because sometimes, to be successful, you need to step out of your comfort zone and be willing to take risks. Do not follow someone or imitate others to do it, but consider your own ability.

[Wapfika]

Yes it is a good debt. Now from explanation, you said, bad debt is meant to buy things that would not bring any value income to the capital amount that has been spent. That it is used to acquire things that do not grow but stagnant even they have value in nature but not increasing.
While good debt is the one you borrow and used it to buy something that will increase the capital which means the money borrowed is not stagnant, it rising and falling investment and that is where bitcoin investment fall into.
Therefore using the borrowed money to buy bitcoin is not a bad debt but people are not advise to use borrowed money to buy bitcoin because of the risk involve in it.

The best example for the good debt is in real estate where some investors buys unit or properties thru bank loans and uses the rent of that properties to pay for it. Though it will requires collaterals or proofs that will determine that you're able to pay that loan. When it comes in Bitcoin if you're convince that Bitcoin future in having more profit is still possible then its good to invest in it but avoid the debt, just accumulate Bitcoin when you have some extra since where not sure when the price will rise again and the interest on your loan might be bigger.

[tygeade]

Generally, that should also be considered a bad debt since the debt has a certain period after which you will need to repay it or the interest will keep building up, and if you invest the borrowed money in Bitcoin and the price drops and doesn't go up before that time reaches, you can't sell the Bitcoin as they are in loss and you can't pay the debt too.

That is why it is never a recommended practice to borrow money to make any investments, especially if it involves a significant amount of risk like cryptocurrencies. Even if you are planning to do business with borrowed money, you need to have a well-thought plan so you to not turn it into a bad debt.

I would guess that people most likely do not realize that the return will diminish if you have to sell bitcoin. Just realize this, I could end up getting a loan today, and the loan could be for %8 back right? And bitcoin could be %10 profit per month lets say, that sounds like a profit?

Well in reality, the first month you sell your coins to pay it, and now you make much less, and each month after that you keep selling and make less and that is why you can't pay it back. There is no scenario where buying bitcoin with money you got from a loan makes sense. Buy something with it, buy silly stuff, have a good life, but do not invest, because you will end up with nothing in the end on top of that debt.

[concept2]

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?

So check it out, debts can either be dope or wack, depending on what you're using them for and your current situation. Like, if you're borrowing money to cop some assets that'll go up in value, then that's what's up, and it's good debt. Real estate and fancy metals are examples of that, 'cause they always get more expensive over time. But, investing in Bitcoin is a whole different story. That crypto coin is new and wild, and it's mad unpredictable. So, if you're borrowing money to invest in Bitcoin, that's straight up bad debt, even if it might get more valuable over time.

Now, in the Bitcoin world, heads always say never to borrow money to invest in it, 'cause it's so damn volatile. Investing in Bitcoin ain't for everyone, and you gotta be mad careful about it. You gotta know the tech and the market, and it's wise to chat with finance experts before you do anything.

The thing you're asking is whether borrowing cash to put into Bitcoin is a bad idea. The answer? Hell yeah, it's bad debt! But, if you do your homework, you can lower the risk and maybe even make some fat stacks. Just remember, investing in Bitcoin ain't for the weak-hearted. You gotta have some major cojones to handle this shiz!

[HajiBagi]

Debt is debt, you have to pay up anyway.

I don't care what you plan to use the money for, just pay back what you lend and you will be free, stupid people take loans and spent it on stupid things while the rich and smart people takes loan and use it for a greater course that could benefit them in future.

Still, even if you use loan money to invest in good business there is still a risk, the business might fail and been in good debt or bad debt will be meaningless, because a debt is still a debt.

Taking out a loan to invest in bitcoin is risky, but taking out a loan to start a business is not. When you take out a loan as a business owner, the first thing you do is decide what kind of business you will run to make money, and even if you don't make money right away, you won't lose the money you started with. A business can never fail if you set your goals correctly as a good business owner.
My point is that, while I don't see anything wrong with taking loan to launch a business, doing so to invest in bitcoin is very risky since you can't sell bitcoin whenever you want and sell products whenever you want to make profit

[Moeda]

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?

No. We do not recommend someone going into debt to invest. Volatility is inseparable in the crypto space, how do you say regardless of volatility. Bitcoin has a guarantee for the future, but who can guarantee that tomorrow the price of Bitcoin will increase.

If you separate two things between debt it is good for investing, and debt is bad for buying cars and the like. So we also have to separate the types of debt, debt that must be paid monthly, or debt that can be paid in an annual period.

OK, it can have a positive effect if we owe it and it can be paid within a year. Because it has an opportunity for us to reach the price of Bitcoin in the future. If we owe and must be paid every month, then it will make things difficult.

[Distinctin]

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.

For me, as long as you’re taking a debt for a profitable and productive purpose, I can say it’s a good debt since you are doing for a good outcome. But let us be reminded that a debt is always a debt, and taking debt for an investment is never advisable, as it’s still advisable to save first before you decide to invest.

[samcoin]

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.

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

As inflation is hitting hard every part of the world, I think borrowing money now should be a nice idea as the values of most national currencies are depreciating, so the borrower is supposed to be the beneficiaries while the depositors are supposed to be the losers. Undoubtedly, using the borrowed money for investment is a right decision, especially this time, as most assets are considered cheap due to inflation and product prices rising, so I recommend buying everything that had higher value in the past, because there's a possibility the current value isn't the right one due to the financial crisis we witness now. Definitely, taking a loan to buy Bitcoin should be a good debt because Bitcoin still has a long way of rising and appreciating considering its current market cap, and its performance over the past years. However, this isn't financial advice, it's just my opinion. If I were able to take a loan to buy Bitcoin now, I would buy without any doubt.

[Botnake]

I believe it’s a good debt as long as you can manage to pay your debt in time, and the fact that bitcoin investment is the most profitable investment at this time. The only way that it gets bad if you start investing it with a huge amount from a borrowed money and you end up losing them gradually because of your greed. And that made you totally broke in the end and now struggling where to find money to pay the loan.

[temple]

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 think one important point to note when comparing good debt vs. bad debt and rich people vs. poor people is the possibility for interest amortization in regards to "good debt". It depends whether someone buys the house or some other asset for themselves or for their business or in case of a house, to rent it out. If renting out is the plan you can actually amortize interest payments for your loan by deducting it from your income. That is a big advantage, especially in times when interest rates are high or rising. Investing in real estate while keeping the status of the newly acquired estates such that you are eligible for deprecation and amortization is a big advantage compared to someone who has to pay the interest out of their own pocket.

In the case of Bitcoin it is risky, it is damn risky. Depending on where you live the interest rate terms differ in regards to their duration. If a bank offers you a certain duration for a pre-fixed interest rate and you sign the contract, you are subject to interest rate changes in the future if your contract expires and you have to find follow-up financing. Now who knows whether Bitcoin can go sideways for five years or not? I don't know. I don't think so but I don't know. If the interest rate is eating away from your initial investment, that would be bad and you would actually have made a bad deal. If it pays off, you won't complain. But making the Bitcoin investment a double-edged sword has the disadvantage I just described. If you buy it with money you have left over anyway, interest rates aren't a concern for you. But if Bitcoin doesn't make any moves and you have signed a high interest rate loan in the hope of Bitcoin soon going to the moon and it doesn't, you are in a bad spot.

If Bitcoin doesn't make a move, a high interest rate loan could get you into trouble. A real estate financed with a loan could as well, but you could at least rent out the house and live at mommy's or a friend's place. The Bitcoin you own won't get your very far in that moment.

It also depends on your risk appetite, the trust in your own abilities to switch gears to the next level, and your age, which more often that not is closely related to the first two aspects I mentioned. The older you get, the less risk appetite you usually have unless you are left without options anyway. But in that case I guess you wouldn't get a sizeable loan either.

[molsewid]

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.

For me, as long as you’re taking a debt for a profitable and productive purpose, I can say it’s a good debt since you are doing for a good outcome. But let us be reminded that a debt is always a debt, and taking debt for an investment is never advisable, as it’s still advisable to save first before you decide to invest.

Indeed, that's the stigma people believe that having a debt is a sin where in fact there is what we call good debt, even businessman and rich people still use this to support their needs even though they have enough funds. If you will use that debt to invest then there's no hard doing it. As long as you will pay for it and you will not run away from it and it will not broke you then it's good.

[bettercrypto]

If you know yourself that you can manage your borrowed money correctly and you can grow it, do it. However, if you do this without concern, the money you borrow will only be put at risk or go to nothing.

     What often happens is that instead of investing in bitcoin and holding it until the bull run comes, what happens is that it goes to personal luxuries based on my observation in other communities here.

[lienfaye]

If you know yourself that you can manage your borrowed money correctly and you can grow it, do it. However, if you do this without concern, the money you borrow will only be put at risk or go to nothing.

Aside from this, it's also important that you are not just relying on the investment that you'll be entering in to pay your debt. Always think of the worst that can happen because investing is risky, and have another plan just incase. It's a good debt if you'll use the money to make more money and would not use it for luxuries. However make sure that you have the capabilities to repay your debt even your investment didn't work well.

Anyway, dont borrow if you can just to invest, much better to use your own money when you invest so less stress in your part and you won't be pressured.

[wxa7115]

If you know yourself that you can manage your borrowed money correctly and you can grow it, do it. However, if you do this without concern, the money you borrow will only be put at risk or go to nothing.

Aside from this, it's also important that you are not just relying on the investment that you'll be entering in to pay your debt. Always think of the worst that can happen because investing is risky, and have another plan just incase. It's a good debt if you'll use the money to make more money and would not use it for luxuries. However make sure that you have the capabilities to repay your debt even your investment didn't work well.

Anyway, dont borrow if you can just to invest, much better to use your own money when you invest so less stress in your part and you won't be pressured.

Borrowing money with the intention of increasing the amount of money we can earn when we invest or trade is the same idea behind leverage, so if anyone is interested in doing something like this they could just learn more about leverage and how to use it instead of taking a loan from a bank.

Still people need to be very careful, most traders lose all their money even when they do not use leverage, then it is natural to assume those very same people cannot deal with leverage either, and the only thing they will be doing by implementing leverage on their trading strategy is to increase the speed at which they lose their money.