Bitcoin Investment: Good Debts vs Bad Debts

[Litzki1990]

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

This is why everyone advises against investing in Bitcoin by taking a loan because Bitcoin investment is very risky. How will the investor repay his loan if the financial assets are severely damaged after investing in Bitcoin by borrowing money from others? 

It is normal to take small loans in the course of daily life.  Because those small loans will be needed in your daily life.  Those who do not take loans should take loans. But it is better not to invest by taking a loan in digital currency like Bitcoin. Investments should be made when you have sufficient funds to invest.

[KiaKia]

Finance is at stake here, and without a loan, the risk of failure is already high. Starting a business without a loan is risky, you can't predict what is going to happen one year later. If you invest in Bitcoin using a loan, something that is built on uncertainty, imagine getting the loan and the market crashing right after your purchase.

When the money is not yours, your mind will be uneasy, but if the money is yours, you can easily summon your courage and wait for the market to recover, even if it takes years. However, the loan must be repaid within a period of time.

[BALIK]

In my opinion, to change our lives for the better, we have to be willing to take risks, of course, everyone understands that the risk of investing in bitcoin is very high, but if we don't dare to take risks, we don't have a chance to get big profits. so in my opinion we have to be brave in investing in bitcoin even though we have to take a loan.

If you are in business and lack capital, you can consider borrowing, or if you need money for living needs, borrowing is the right thing to do if there is no better solution. But borrowing money to invest, especially in a risky asset like bitcoin is discouraged. If you know you need to take risks to succeed, why don't you work harder to have some money to invest? Meanwhile, you are not trying to work to save but thinking of borrowing to invest. There is no 100% guarantee that a bitcoin investment will yield a return, and are you prepared for that?

[Smack That Ace]

I think borrowing money to invest in Bitcoin is a good debt classification, because its value will continue to increase over time. but even though this investment is classified as good debt, we must not forget that investing in bitcoin is a step full of risks, this is due to uncertain or fluctuating market conditions. with the magnitude of the risk, we also need to understand the right way to invest by using borrowed money or debt.

It is good only if one is very sure to be able to pay back without being stressed and not  hoping that the loan will be payed from bitcoin profits. Some people take loan and think in a short time they will gain profits from bitcoin that can be used to pay their loan. Bitcoin is volatile and no one can tell when  profits is taking place,  if people are taking loan to pay back from their bitcoin investment I think it is not a good idea because the risk in it is so high. People should invest in bitcoin and should not depend on their investment in their own timing.     I only encourage taking loan to invest in bitcoin if only the repayment of the loan is for a longtime.

Called debt means paying both principal and interest, so there will be no good debt or bad debt, I have never heard of the concept of good debt. Investing in bitcoin or borrowing money for business is not much different, I would not recommend anyone, even if it is a long term loan.
Only consider borrowing money when you have a steady source of income and plan to repay it on time, even if your investment doesn't turn out the way you expected. If you have no job, and no income, then even if that loan lasts 10 years, you will never be able to pay, and there is no guarantee bitcoin will make a profit. So it is very risky to borrow money.

[Latviand]

That depends, if you plan to use your bitcoin for trading and you don't have any skills in trading that can help you grow that loan then it's a bad debt but if you do have the skill or the loan isn't that restrictive and doesn't need to be paid anytime soon then it's a good debt, good or bad is just a matter of perspective, I think anyone can agree on that.

[Pierre 2]

I always supported the idea saying its bad debt if you use money to purchase things that you can't afford. Best debt is a debt that can generate you more money than what you will pay later. My personal favorite is to use credit cards to buy Bitcoin when its cheaper. Than I can close my debt through my wage later in that month. Most credit cards have great campaign/discount opportunities. Bitcoin is always good debt if you buy low sell high.

[Wong Gendheng]

In our lives we must have a strong principle, so that our future can be bright so we must dare to make decisions to invertate, as we know that cryptocurrencies are good opportunities for investment because of enormous profit opportunities and in a short time.

[Botnake]

I always supported the idea saying its bad debt if you use money to purchase things that you can't afford. Best debt is a debt that can generate you more money than what you will pay later. My personal favorite is to use credit cards to buy Bitcoin when its cheaper. Than I can close my debt through my wage later in that month. Most credit cards have great campaign/discount opportunities. Bitcoin is always good debt if you buy low sell high.

Actually, it’s always a bad debt regardless of your intention or goal, if you are not capable to pay or don’t have any source of income that will pay your debt. Be it bitcoin or not, as long as you don’t have a stable source of  income, investing bitcoin from taking a loan is very risky. However, if you have another investment that is working well, and can generate enough income to pay your debt, then it might be a good debt then if you use it to expand it start a new business.

[Moeda]

In my opinion, to change our lives for the better, we have to be willing to take risks, of course, everyone understands that the risk of investing in bitcoin is very high, but if we don't dare to take risks, we don't have a chance to get big profits. so in my opinion we have to be brave in investing in bitcoin even though we have to take a loan.

If we have a steady income to cover the loan, of course it's not a bad thing we take out a loan to invest in crypto. But if you don't have a regular income, this will make you dig two holes at once. Yes, if we look at the current market conditions it is more convincing to invest, but if the market is calm, does not show an up or down reaction, it will be more difficult for us to invest.

[cafee_orange]

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?

If lending money is only for the sake of investing in bitcoin, in my opinion, I don't agree, that's because it can be fatal if market conditions don't support it and of course it's a bigger risk, but if it's for investing in real estate, or precious metals, I really agree because there are visible objects. .
but to invest in bitcoin or other crypto it is better to use money that has nothing to do with loans or debt.

[hannahB4]

Though the definition you gave for bad debt is quite different from the accounting definition. Some loans will be for the long term and there are some short term, if one can take a loan for the long term and invest in Bitcoin, and when the time is ripe to return apart from the principal money you get profit then I will call that a good debt and vice versa bad debt.

[inthelongrun]

In the world of finance, bad debt has a different meaning. It means the borrower is not capable of paying their debts which may result in loss of money or any portion of it.

Now back to OP's point. I would never advise someone about borrowing money in order to invest in bitcoin. Usually, when we borrow money from banks, they will ask for the purpose. If your purpose is to buy bitcoin, then I can guarantee you that your loan application will be denied. Unless you are rich already with big deposits in your bank account which doesn't make sense or your payroll is big enough to pay your dues.

Bitcoin IMO is a good long-term investment but since we cannot guarantee its future, we should not borrow money just to invest in it. It is not even advisable to invest money that is not extra. And only part of your extra money or savings should be used to buy bitcoin. It is basic to have savings that you can withdraw anytime for emergency purposes.

[Lubang Bawah]

Borrowing money for bitcoin investment is of course a good thing, this is because of the potential for prices to continue to rise in the future, if there are banks that provide easy loans then we have to try it, I'm sure in 5 or 10 years the price of bitcoin can reach $ 1 million so bitcoin will be the most valuable asset.

[Marvell1]

In the world of finance, bad debt has a different meaning. It means the borrower is not capable of paying their debts which may result in loss of money or any portion of it.

Now back to OP's point. I would never advise someone about borrowing money in order to invest in bitcoin. Usually, when we borrow money from banks, they will ask for the purpose. If your purpose is to buy bitcoin, then I can guarantee you that your loan application will be denied. Unless you are rich already with big deposits in your bank account which doesn't make sense or your payroll is big enough to pay your dues.

Bitcoin IMO is a good long-term investment but since we cannot guarantee its future, we should not borrow money just to invest in it. It is not even advisable to invest money that is not extra. And only part of your extra money or savings should be used to buy bitcoin. It is basic to have savings that you can withdraw anytime for emergency purposes.

Borrowing money for a purpose is not necessarily called completely bad, because in life, sometimes we will also have financial difficulties, and borrowing money is a solution. But borrowing money to invest in an asset volatile and uncertain future like bitcoin is actually a bad idea. If we can borrow money to invest in bitcoin, that means we can also sell our real assets to invest, and that goes against all the advice on this forum: "invest only what we can lose". Only invest in bitcoin with lazy money.

[Fara Chan]

Borrowing money for bitcoin investment is of course a good thing, this is because of the potential for prices to continue to rise in the future, if there are banks that provide easy loans then we have to try it, I'm sure in 5 or 10 years the price of bitcoin can reach $ 1 million so bitcoin will be the most valuable asset.

How do you think that borrowing money from a bank will be good for investing in Bitcoin? Because in the country where I live now, people's business credit or in short KUR will not be given arbitrarily by the bank because they (the bank) always want to know what the customer's business is and where he lives. Have you ever found a bank that is willing to give random loans to everyone now?

Because in my opinion this is still very ridiculous if there are indeed banks that want to provide loans to customers who only want to use the money for Bitcoin investments. Trying is necessary especially with a good asset like Bitcoin, but it's not that silly either because when you only think about 5 or 10 years of price increases, you also shouldn't ignore the price drops that can happen at any time in Bitcoin. After all, the increase and decrease in the price of Bitcoin is a very uncertain thing when it will happen.

[blockman]

Borrowing money for bitcoin investment is of course a good thing,

You'll have to pay the interest of that borrowed money. What if you've loaned money to buy bitcoin just after the bull run and the bear market came? This is the worry that many are thinking about because a lot of people did that before and they did it on the wrong time.
Not saying that someone can just do it on the right time because you'll never know the circumstances that you'll be facing on the right time and if you'll be able to borrow money. We all believe that the price of bitcoin will rise for the next couple of years but still, you'll be taking a debt and you're obliged to pay for it while we're not yet profiting from the purchased bitcoin and you'll have to pay it with the fees and interests.

[Cling18]

Borrowing money for bitcoin investment is of course a good thing,

You'll have to pay the interest of that borrowed money. What if you've loaned money to buy bitcoin just after the bull run and the bear market came? This is the worry that many are thinking about because a lot of people did that before and they did it on the wrong time.
Not saying that someone can just do it on the right time because you'll never know the circumstances that you'll be facing on the right time and if you'll be able to borrow money. We all believe that the price of bitcoin will rise for the next couple of years but still, you'll be taking a debt and you're obliged to pay for it while we're not yet profiting from the purchased bitcoin and you'll have to pay it with the fees and interests.

Although it seems risky, investing borrowed money in Bitcoin is actually a fantastic option but we should never forget that the price of Bitcoin fluctuates too much, and the bullish season is never foreseeable. When it comes to investing in cryptocurrencies, it will be a better idea to use our hard-earned money or the money that we can only afford to lose because it is always crucial that we will be responsible in utilizing our borrowed funds and we have to make sure that we can pay it back on time. We won't know when we can take the desired goal profit if we invest our borrowed money in cryptocurrencies, which could result in even worse repercussions from the loaning and jeopardize our financial situation. I like the concept of saving money to invest to the idea of borrowing money to invest.

[crunck]

Borrowing money for bitcoin investment is of course a good thing, this is because of the potential for prices to continue to rise in the future, if there are banks that provide easy loans then we have to try it, I'm sure in 5 or 10 years the price of bitcoin can reach $ 1 million so bitcoin will be the most valuable asset.

What do you have to prove? If you were sure about the future of bitcoin, how much did you invest in it? I would say that borrowing money to invest in bitcoin is the dumbest thing in the world. Bitcoin does indeed have upside potential, but there is no guarantee of that and we also need to take into account that it will crash in the future.

[bettercrypto]

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

This is why everyone advises against investing in Bitcoin by taking a loan because Bitcoin investment is very risky. How will the investor repay his loan if the financial assets are severely damaged after investing in Bitcoin by borrowing money from others? 

It is normal to take small loans in the course of daily life.  Because those small loans will be needed in your daily life.  Those who do not take loans should take loans. But it is better not to invest by taking a loan in digital currency like Bitcoin. Investments should be made when you have sufficient funds to invest.

There is nothing wrong with taking a loan, now if taking a loan is a way to invest in bitcoin without any other source of income, it can be said that this is a wrong step that a person will take. Because the only thing that will happen is that the person who does it can only end up in debt.

       But if there is another source of income apart from being an employee or having a micro business, I think it's fine to borrow if the borrower's condition is like this. So, I hope we just put the use of debt or borrowing money in the right place.

[Moeda]

Borrowing money for bitcoin investment is of course a good thing, this is because of the potential for prices to continue to rise in the future, if there are banks that provide easy loans then we have to try it, I'm sure in 5 or 10 years the price of bitcoin can reach $ 1 million so bitcoin will be the most valuable asset.

But the bank does not wait 5 to 10 years to collect the loan. They will come from the first month to ask for monthly bills. If the financial conditions are empty, of course we will sell Bitcoin assets. If the market is down, and we are forced to sell it, that's when we experience a loss. Don't think which is easier, think which is more difficult to be able to get easier results.