Should I take a $50K loan from the bank and invest it all in Bitcoin?

[free-bit.co.in]

From the day that OP posted this thread the current price of the Bitcoin that time is roughly around $110-115k which makes another market pump during the start of the week with the october which we make attempt for another ATH if he takes the loan and make a take profit for sure he made the gains, but if he ended up holding the coinhe has now for sure he will suffer too during the market crash. But again we/i do not recommend taking loan just to invest with the crypto if they cannot manage the risk for sure they will ended up lossing and cant take back the debt they had.

if OP borrowed money and invested in bitcoin at 110-115k, and compared to current price of 106k. This is not a big loss and is only temporary so there is nothing to worry about.

Personally I would not recommend OP or anyone to borrow money to invest as I am not an expert and do not know their financial situation. But I don't see anything wrong if he has a stable job and income and can borrow money with his salary (unsecured loan).

In my opinion, whether or not to borrow will depend on each person's income and financial situation. As some have said, if he can repay that loan with his income. Why can't he borrow?

[gunhell16]

If you can pay your loan without depending on the outcome of your investment, then go on. Taking a loan will maximize the potential outcome of your investment, but since we are talking a volatile and unpredictable investment here, the risk to lose should not be forgotten as well.

Know your best options and your reasons why you want to take a loan. Now if you can manage the risk whatever the outcome is, and you can undoubtedly pay your loan with your main source of income, I don’t think taking would be an issue.

My question is, if someone can pay those loans with their income and savings, without depending on the outcome of their investment. Why should they borrow money when they can use that money to invest in bitcoin using the DCA strategy? That way, they won't have to worry about paying off debt, and their investment will also be safer.

In my opinion, it is clear that people who intend to borrow money to invest are mostly people who have no income or savings. They don't even have a good plan and what they do is just greed and regret seeing the amazing growth of bitcoin.

So they should not borrow money, because they are just gambling, not investing.

You're right about that point. However, what do you think about business people who already have a stable source of income from their businesses,
do they still borrow large amounts despite already earning a lot from the businesses they have?

The same goes for people who have a stable source of income; I don't see anything wrong if they take out a loan and are qualified to borrow
from the bank if they are going to use it for Bitcoin.

[GiftedMAN]

Anything in the form of a loan is never recommended for investment. The reason is clear, as investing is a risky activity. On the other hand, you might be able to earn at least a 10% annual increase in Bitcoin to pay off your bank debt. However, this is not recommended. I assume the increase will only be enough to cover the interest on your bank debt.
The bottom line is to avoid borrowing money for investment. It's too risky, and you've probably heard from others, including professionals, that the money allocated for investment should be idle money that won't be used for anything else in your life.

Every investment has the risky but taking a loan to invest especially in Bitcoin is very risky because of the volatile nature of Bitcoin, the bank can give you loan for you to invest but imagine you invested all the money you took from the bank into Bitcoin and the market crashed just like what happened this October what will become of the money you took as loan, for investment you should get your capital then when you have established the business you can think of loan for expansion.

[Marvell1]

You're right about that point. However, what do you think about business people who already have a stable source of income from their businesses,
do they still borrow large amounts despite already earning a lot from the businesses they have?

The same goes for people who have a stable source of income; I don't see anything wrong if they take out a loan and are qualified to borrow
from the bank if they are going to use it for Bitcoin.

For me, borrowing money to expand a business is completely different than investing in Bitcoin.

Because business is a steady cash flow generating activity, real money and we can control and intervene to adjust if things don't go as expected. From there, we can either minimize risk and loss or we can find ways to increase revenue.

Meanwhile, investing in Bitcoin is a riskier form because it is highly speculative. We are almost passive and 100% dependent on the market, we cannot intervene in the market and the only thing we can do is pray that everything will go as expected.

There is a big difference between business and speculation. We should not think that they are the same.

By the way, having a steady income doesn't mean you can take unlimited risks. A steady income will not guarantee your safety when using large financial leverage.

[LogitechMouse]

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if OP borrowed money and invested in bitcoin at 110-115k, and compared to current price of 106k. This is not a big loss and is only temporary so there is nothing to worry about.

Personally I would not recommend OP or anyone to borrow money to invest as I am not an expert and do not know their financial situation. But I don't see anything wrong if he has a stable job and income and can borrow money with his salary (unsecured loan).

In my opinion, whether or not to borrow will depend on each person's income and financial situation. As some have said, if he can repay that loan with his income. Why can't he borrow?

Well, Bitcoin's price is at $111,000 already so he's near the breakeven price already (depending on what price did he bought), but if he used that money (assuming that he took a loan) on leverage trading and opened at that price range that you said then he's one of the millions of traders that got liquidated that's for sure. If it's a spot trading though then it really isn't a big loss.

Like most here, I would not recommend OP to borrow as well... FOR NOW because he can borrow when we enter the bear market AS LONG AS he has a job where he can get the payment on that income without compromising his expenses and savings. I have nothing against taking a loan and investing into Bitcoin. It's just that we should know when to do it, and the best time to do it is during the bear market, not during this bull market season. It's good that there's somebody that has the same thinking as me. Many here can't understand it and will just say "Don't borrow money and invest into Bitcoin because it's too risky." Like do we know their capabilities? What if he can pay that loan in a year or 2 without sacrificing anything, do we tell to them that they should not borrow money?

I hope OP is still here and reading our posts. For you OP, don't borrow now, and instead borrow during the bear market season which can happen possibly next year. Just have a little bit of patience.

[MinMan]

From reading the title alone I came to the conclusion that you did not study risk management!

First of all, all banks will loan you money with interest (unless you live in the Middle East or something). Those interest payments alone must be made on a monthly basis, and unless you have other assets you can pay with, you'll get fucked.

Second of all, technical analysis. Do you want to buy Bitcoin when it's on top of the chart and then have to hold it while it trends to the bottom? Most loans have a due date. Also all banks require some sort of collateral, unless you're using your credit score, in which case the collateral is your future. So in many cases you won't even be able to acquire such a loan, or in the particular exception I mentioned, such a loan will actually wreck your life.

You should not be borrowing money to buy Bitcoin. The same mistake made when using leverage is also made when you borrow other people's money to buy it. Purchase with your own money or don't buy it at all.

Mathematics alone is simple enough to make this a bad idea. If you take out 1000 dollars, and need to pay back 1200  dollars in 12 months, that's 100 dollars a month. Which means, you need 10% return in first month to pay off, so your 1000 becomes 1100 and you pay back the 100 dollars without dipping in, if not then you are already losing. So you need bitcoin to earn you on average 10% per month, just to pay it back.

If anyone checks bitcoin history, they will see that there are no months where it did 10% or more 12 months in a row. So what else is left? Wishing and hoping that it would do something like 20%+ or more in the first month you join, so that you would make it all back and pay early and then be in profit. How easy do you think that is? We are already near the top.

[Finebone]

So here’s my question
Would you take a $50K bank loan to invest in Bitcoin today?

Yes I will, if I have other means of payment back the loan, and the outcome of my investment in bitcoin has no role in my ability to pay back the loan.
But if I will be depending on the revenue from my investment to pay back then it's a very bad idea because bitcoin is not something that's going to be giving you monthly or weekly income .

Or is this just deja-vu waiting to go wrong?

In your statement, it's a deja vu waiting to go wrong only if your repayment plan depends on the outcome of your bitcoin investment, because since Bitcoin is a volatile asset, no one knows what it might do next, so you might be in a serious loss when the loan repayment is seriously knocking, so it's just a bad idea entirely if you depends on bitcoin to pay back.

[CryptoBuds]

So here’s my question
Would you take a $50K bank loan to invest in Bitcoin today?

Yes I will, if I have other means of payment back the loan, and the outcome of my investment in bitcoin has no role in my ability to pay back the loan.
But if I will be depending on the revenue from my investment to pay back then it's a very bad idea because bitcoin is not something that's going to be giving you monthly or weekly income .

Yes, whether or not to borrow money will depend on our financial situation. If we have a stable source of income and do not need to depend on investment profits to pay off debt. For some reason we do not have enough money to invest in bitcoin, borrowing money is completely possible. On the contrary, if we rely solely on investment profits to pay off debt, it is a bad idea.

Depending on the actual situation, we decide whether to borrow or not. We do not need to be too strict and prejudiced about borrowing money for investment. Borrowing money to invest/do business is not such a bad thing if we have a good plan and strategy.