Bitcoin Investment: Good Debts vs Bad Debts

[axxo]

Bitcoin investment will only be a good debts if your investment generate well enough profit and you had settled your loan with the profit. It is consider bad debts if you loose from your investment and you had encountered problem on repaying your loan. Taking a loan just to invest in Bitcoin is very risky because you do not know if you will generate profit or not. Much better to invest only the amount that you can afford to loose. Evaluate your financial capacity before you invest in crypto currency so that you will not regret it if you loose all of your investments.

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[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.

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.

I don't see it as a fantastic option because it's not really a good choice using loan money to buy a very, highly volatile asset as bitcoin. We don't want to get in debt and that's not the best option for the majority but if someone thinks that he's good with it and can survive then let him do his own take with that. But if the time comes that he's not able to pay the loan and he's only reliant to his profits in bitcoin, he'll for sure needing to do something with that and cover it with his other source of income if the market don't do great.

[romero121]

Most of the time our minds won't have control. We always prefer things for luxury and for the purpose of showing ourselves high in the society. Thi is one of the biggest issue that can be seen with the middle class people. This mentality needs to change and surely they'll be able to make good savings and invest for the betterment of life

In one of the animated video saw about how a rich and poor spend on clothing. Rich spend around $15 for his clothing, including shirt, trouser and for sneakers. For the same a poor spends around $200 as he buy branded ones. Finally when asked to find which is costlier people find rich person's clothing to be costlier. We should have the right understanding on spending.

[slapper]

Most of the time our minds won't have control. We always prefer things for luxury and for the purpose of showing ourselves high in the society. Thi is one of the biggest issue that can be seen with the middle class people. This mentality needs to change and surely they'll be able to make good savings and invest for the betterment of life

In one of the animated video saw about how a rich and poor spend on clothing. Rich spend around $15 for his clothing, including shirt, trouser and for sneakers. For the same a poor spends around $200 as he buy branded ones. Finally when asked to find which is costlier people find rich person's clothing to be costlier. We should have the right understanding on spending.

Absolutely, blowing stacks of cash on branded clothes? Nuts. Let's shift gears from material obsession to what counts: personal development and deep connections. But let's face it, the notion that the wealthy spend less on threads? Laughable. They've got the golden ticket to elite brands – a world beyond our wallets. Still, there's no crime in splurging on quality gear if it sparks joy. Balance, folks, that's the secret sauce. In short, ditch the wardrobe judgments, focus on crafting a life that's truly satisfying. Bam!

[bitgolden]

Most of the time our minds won't have control. We always prefer things for luxury and for the purpose of showing ourselves high in the society. Thi is one of the biggest issue that can be seen with the middle class people. This mentality needs to change and surely they'll be able to make good savings and invest for the betterment of life

In one of the animated video saw about how a rich and poor spend on clothing. Rich spend around $15 for his clothing, including shirt, trouser and for sneakers. For the same a poor spends around $200 as he buy branded ones. Finally when asked to find which is costlier people find rich person's clothing to be costlier. We should have the right understanding on spending.

Absolutely, blowing stacks of cash on branded clothes? Nuts. Let's shift gears from material obsession to what counts: personal development and deep connections. But let's face it, the notion that the wealthy spend less on threads? Laughable. They've got the golden ticket to elite brands – a world beyond our wallets. Still, there's no crime in splurging on quality gear if it sparks joy. Balance, folks, that's the secret sauce. In short, ditch the wardrobe judgments, focus on crafting a life that's truly satisfying. Bam!

I think there is a difference there for reasoning though. Sure if you are poor and you buy something you shouldn't spend that much money on when you do not need it makes sense, that is understandable.

However, lets say you need a new coat for the winter, and there is this expensive brand that gives something that goes on for a long time, durable, then you may end up buying it BECAUSE you are poor, better than keep buying a new shitty one. I bought a coat for nearly double what minimum wage was at the time, literally two months worth of salary at the time, obviously credit card so I paid it for 12 months but it was 2 months salary worth anyway. Silly right?

You think I am a moron for doing it? That same coat is the one I have been using for 9 winters now, 9! Which means that the price I paid for it at the time, is equal to less than a shirt today due to inflation and I will probably keep using it for at least another 9 winters by the looks of how great it is currently, not a single thing wrong with it after all these years, not one tear.

[Sanitough]

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.

I don’t think borrowing money is the right option when one decide to invest without money on hand. Particularly for a risky investment like bitcoin, you cannot expect it to pay your loan’s interest and fees every month because you don’t hold guarantees as to when will you become profitable from bitcoin investment. In the end, you will only end up having another debt to pay your first loan. Though bitcoin is a wise investment, but I cannot advise anyone to invest in it from a borrowed money or funds.

[stomachgrowls]

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?

We cant really make out some conclusion but most like it would really be sitting on that good debt and as long you do know on how to repay those loans or borrowed money on time without compromising your finances

then i would definitely say that you wouldn't really be that a bad thing or decision to be made.It is really just that there are people who do took up the risks on unrealistic manner and does have some high hopes that their investment would pay off on short time which we know that it cant really be just that possible considering that this market is really that unpredictable. Speaking about debts or loans whether its a good one or not,
its not really that good to have loans at all or as much as possible. The fact that we could still able to make earn some income and you should really be that wise on making that extra
to go in the works or would really be having re-rolling.

It isnt really that necessary for you to take a loan first before you could really engage with some investment but if you do really find that it would really be that necessary for you to make
such step then it wouldn't really be that bad on taking some consideration on doing so or taking up some debts just as long you are really that responsible on what are the things
that you should settle once you do engage into it.

[Fatunad]

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?

We cant really make out some conclusion but most like it would really be sitting on that good debt and as long you do know on how to repay those loans or borrowed money on time without compromising your finances

then i would definitely say that you wouldn't really be that a bad thing or decision to be made.It is really just that there are people who do took up the risks on unrealistic manner and does have some high hopes that their investment would pay off on short time which we know that it cant really be just that possible considering that this market is really that unpredictable. Speaking about debts or loans whether its a good one or not,
its not really that good to have loans at all or as much as possible. The fact that we could still able to make earn some income and you should really be that wise on making that extra
to go in the works or would really be having re-rolling.

It isnt really that necessary for you to take a loan first before you could really engage with some investment but if you do really find that it would really be that necessary for you to make
such step then it wouldn't really be that bad on taking some consideration on doing so or taking up some debts just as long you are really that responsible on what are the things
that you should settle once you do engage into it.

Make debt as a good one and this could be done via investment and not really just buying up some cars, or liabilities which it doesnt really generate some potential income.This is the main
mistake of some people on where they do took up some loan just because they do like to buy on something and on the time where they would be needing to pay up, then this is where problem starts.
The golden rule about this is that you shouldnt really be take a loan which is something that you cant really afford to repay on time. You are really just molding yourself to be having
that problem which it would might result on being that getting stressed and being pressured specially when due date comes. Always be that sensible and realistic with your decisions in life.
Dont take a loan if it wasnt needed, and this is why it is really that sensible on having a savings on which its not really that just for emergency purpose but also this could be used
on buying up things that you do like which it doesnt really need to take loan from that.

[AmoreJaz]

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.

I don’t think borrowing money is the right option when one decide to invest without money on hand. Particularly for a risky investment like bitcoin, you cannot expect it to pay your loan’s interest and fees every month because you don’t hold guarantees as to when will you become profitable from bitcoin investment. In the end, you will only end up having another debt to pay your first loan. Though bitcoin is a wise investment, but I cannot advise anyone to invest in it from a borrowed money or funds.

i won't advise anyone to take a loan just to invest in btc. that's true, you don't know if it will be profitable for you as you are also paying for the loan interest. you may very likely end up on the losing side here. also do take note that profitability depends on when will you cash out your investments. what if at the time that you need your funds, btc is down. which means, you need to sell below your buying price. so that's terrible situation to be in. no profits and yet you need to pay for the loan interest. you are just clearly wasting your time on this regard. so for me, this will fall as bad debt. so how you classify it is relative to your situation. you can't have concrete answer on this matter.

[MainIbem]

Is all of the above because you may borrow money to invest in bitcoin and it happens that the market appreciate to an extent it pumps so hard and you could get the borrowed money withdrawn from the investment, likewise borrowing money and the market went against you suddenly you are in debt of paying loans so you see, that is why is always encourageable for people to have alternatives means where they can hold to pay debt or otherwise depending solely on bitcoin might even give them a heart attack because is not a guaranteed investment.

[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.

Your mind is still like a child who only remembers the good things but doesn't want to know how bitter it is to struggle to make money. I don't know how the banking system in other countries is in terms of providing loans, but for the bank system in the country where I live now, the bank will not provide any loans as long as the borrower does not have a clear business with regular monthly income. And besides, the bank where I live also does not immediately believe in the level of income from investments that are still at risk of loss, even though they may already know Bitcoin.

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.

I even laughed inside at what he thought , and maybe he also never made any loan through a bank so he could easily suggest something like that to other people. Even though every loan at the bank has rules that bind each borrower to pay it monthly, not annually as he said. But somehow he thinks like that now, which is very illogical and really funny to me because he completely forgets about the risks of investing and only thinks about the benefits.

[Sexylizzy2813]

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

You have a point, OP because good debts can also contribute to one achieving wealth and happiness, helping to obtain something useful. But it can become bad when you take on too much that you can't handle or even pay back. Before you know it, it has become something you wish never happened, a big loss for you.

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

Is not really true, as a matter of fact it all depends on the individual, poor people can have a good debt that can produce a positive result at the end and a rich man can have the opposition, is just a vise versa. We can't just say poor people have bad loan because they're poor and rich have good loan because they're rich and they have it all to make things right, no, I disagree.

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 has never been proper to borrow money because you want to invest even if it's Bitcoin, never forget that in business you just have to put it at the back of your mind that is a 50/50 thing, you don't have to win or gain always so that how it is.

As for classifying borrowed money to invest in Bitcoin as a good or bad debt, I'd say no to that. Borrowing to invest on Bitcoin can backfire, anything can happen so I don't support such.

[smile1218]

Bitcoin is not a debt instrument, so it cannot be classified as either good debt or bad debt. Debt refers to the money that is borrowed and must be repaid with interest, whereas Bitcoin is a digital asset that can be bought and sold on various exchanges or platforms.  Some people may choose to borrow money to invest in Bitcoin, which could potentially result in either good or bad debt depending on the outcome of their investment. If the value of Bitcoin increases they may be able to pay off their debt and make a profit. However, if the value of bitcoin decreases they may struggle to repay their debt and could potentially face financial difficulties.

[Kadal Ijo]

I think bitcoin investing is what will make us rich people, if we buy 1 btc now at around $27k and we hold it for at least another 15 years then we have a chance to become new millionaires when the price can reach $1.5 million, for those who are always afraid and pessimistic then his life will not be successful.

[slapper]

Bitcoin is not a debt instrument, so it cannot be classified as either good debt or bad debt. Debt refers to the money that is borrowed and must be repaid with interest, whereas Bitcoin is a digital asset that can be bought and sold on various exchanges or platforms.  Some people may choose to borrow money to invest in Bitcoin, which could potentially result in either good or bad debt depending on the outcome of their investment. If the value of Bitcoin increases they may be able to pay off their debt and make a profit. However, if the value of bitcoin decreases they may struggle to repay their debt and could potentially face financial difficulties.

That's quite a paradoxical scenario you've got there! While Bitcoin is not inherently a form of debt, it can be indirectly related to debt depending on the investor's choices. I liken it to a sandwich - the bread being the loan, the filling being the Bitcoin investment. A delicious, high-risk sandwich that could either leave you satiated or with a nasty case of indigestion.

Investing borrowed money in such a volatile asset is as if you're trying to ride a bull in a china shop; it might work out spectacularly well, or you could end up breaking every single piece of fine china in sight. Though, any form of investment should be made with caution. If you're borrowing to invest, always have a contingency plan in case the market doesn't swing in your favor.

[gaston castano]

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.

You are correct that debt must be repaid regardless of the purpose for which it was borrowed. It's important to be responsible with borrowing and to understand the risks involved. While it's true that some people may use loans for frivolous or unnecessary expenses, others may utilize them for investment or other ventures that could potentially yield positive returns.

[cydrix]

Each investment carries some risk. The idea behind bitcoin is that its value will increase. The market, however, differs from traditional markets where more precise predictions can be made. With the help of bitcoin and other cryptocurrencies, rapid changes were possible. As stated, it is better to invest in bitcoin and use the earnings to buy cars, homes, and other luxuries rather than spending money on cars and other luxury items to make life more comfortable.

The primary goal of most folks in my neighborhood is to own their own home. They eventually purchase a car and acquire some jewelry that comes in handy in an emergency. Currently, understanding is being spread slowly, and as a result, more people will start to choose investing over saving.

[Minecache]

Bitcoin is not a debt instrument, so it cannot be classified as either good debt or bad debt. Debt refers to the money that is borrowed and must be repaid with interest, whereas Bitcoin is a digital asset that can be bought and sold on various exchanges or platforms.  Some people may choose to borrow money to invest in Bitcoin, which could potentially result in either good or bad debt depending on the outcome of their investment. If the value of Bitcoin increases they may be able to pay off their debt and make a profit. However, if the value of bitcoin decreases they may struggle to repay their debt and could potentially face financial difficulties.

That's quite a paradoxical scenario you've got there! While Bitcoin is not inherently a form of debt, it can be indirectly related to debt depending on the investor's choices. I liken it to a sandwich - the bread being the loan, the filling being the Bitcoin investment. A delicious, high-risk sandwich that could either leave you satiated or with a nasty case of indigestion.

Investing borrowed money in such a volatile asset is as if you're trying to ride a bull in a china shop; it might work out spectacularly well, or you could end up breaking every single piece of fine china in sight. Though, any form of investment should be made with caution. If you're borrowing to invest, always have a contingency plan in case the market doesn't swing in your favor.

In my opinion, once we call it a debt, it means we must pay at all costs, and to pay the debt, we must earn money. So it can never be said that debt is good no matter what we use it for.

After all, bitcoin is just an investment like gold or stocks, and as an investment, there will always be risk, the higher the return, the higher the risk. So don't be too biased when saying that borrowing money to invest in bitcoin is good and all the rest is bad.

Borrowing money to invest is always a bad idea no matter where we invest because we can't be sure what will happen in the future.

[Webetcoins]

Bitcoin is not a debt instrument, so it cannot be classified as either good debt or bad debt. Debt refers to the money that is borrowed and must be repaid with interest, whereas Bitcoin is a digital asset that can be bought and sold on various exchanges or platforms.  Some people may choose to borrow money to invest in Bitcoin, which could potentially result in either good or bad debt depending on the outcome of their investment. If the value of Bitcoin increases they may be able to pay off their debt and make a profit. However, if the value of bitcoin decreases they may struggle to repay their debt and could potentially face financial difficulties.

You probably didn't read the opening post before writing this response, because it clearly asks if money is taken as a loan to buy Bitcoin, will that be considered a good debt or a bad debt? Things that are bought with borrowed money which provide nothing in return like consumable goods, etc. are considered bad debts because the money spent on these things is just gone, but when you use the borrowed money for something that in return provides you more than what you've put in, it would be called a good debt.

With that rule, Bitcoin will probably fall under good debts if it's bought at the right times since we know its price will eventually go up, so if we borrow $1k and invest in it and it goes up 50%, we will have $1.5k out of which $1k will go for the debt and the remaining amount minus commission is your profit.

[Litzki1990]

I think bitcoin investing is what will make us rich people, if we buy 1 btc now at around $27k and we hold it for at least another 15 years then we have a chance to become new millionaires when the price can reach $1.5 million, for those who are always afraid and pessimistic then his life will not be successful.

According to the current market price, if you buy 1 BTC and hold it for a long time, I understand that a good profit will come from it, but for a long period of 15 years. And very few people can keep this amount of money invested for such a long time. 
Most of the investors sell their investments as the market changes, resulting in no profit from the investment. But if a certain amount of BTC can be bought and held for a long period of time, then this small amount of investment will eventually turn into a much larger amount.