Topic: 18% of Investors Buy Bitcoin With Borrowed Money (Read 455 times)
Let me say some observations first. One is that this may not be a conclusive study because first, not everyone in the cryptocurrency world is in this platform; and second is that not every person in this forum may have seen the survey. But okay, assuming that it is a good survey. Numbers show that people are becoming more resourceful in where they get their investment money. It's either they just want to use a credit card to have their money rotating while they still have their savings, or they just don't have the money. If the latter is true, then people is having a lot of hope and belief into bitcoin, or plainly people are desperate.
There is a high risk to borrow money to buy BTC. Right now I think a lot of people have paid for their decision
not all people rich, especially from third world. with the accuracy of the analysis and calculation, they can gain a bit of profit from investing in bitcoin
Even though they earned profit from investing with bitcoin, but it's gonna be hard making investment using borrowed money because they think also for the interest of it. But anyway, somewhat to say "no pain no gain". Their trust towards bitcoin really give them courage to take the risk and believing that they can make huge money from here.It is very risky on their part using borrowed money to buy bitcoin but majority of those who bought have been able to pay their debt so good for them. For those who wasn't able to pay though may have bough bitcoin when it is around $18k above and they are at a loss now and surely not happy with their decision if they are just waiting for bitcoin to go up again but if they traded in other coins and gained much more then good for them. There is quite a surge in altcoin lately and maybe someone was able to buy XRP, TRX or VEN when it is still cheap so they have multiplied their money already. Well surely the advise of invest what you can afford to lose is not applicable to them.
not all people rich, especially from third world. with the accuracy of the analysis and calculation, they can gain a bit of profit from investing in bitcoin
Even though they earned profit from investing with bitcoin, but it's gonna be hard making investment using borrowed money because they think also for the interest of it. But anyway, somewhat to say "no pain no gain". Their trust towards bitcoin really give them courage to take the risk and believing that they can make huge money from here. 
These people should seek financial advice. While some people may make lots of money and are able to pay back their debts, am sure a lot screw up in the market and end up being bankrupt. Only invest what you can afford to lose.
You are right, its a good advice, but some people put last hopes in bitcoin and in some way I admire them. You need to be brave and risk sometimes, people think that with loans from the bank they can double or triple their money and to have to return, that is not bad strategy but bitcoin price can go upslowly and that is probably not the speed they wish to see. Bitcoin will rise, but for that we need to wait, this price now didn`t come from yesterday its something that is build for 9 years.
These people should seek financial advice. While some people may make lots of money and are able to pay back their debts, am sure a lot screw up in the market and end up being bankrupt. Only invest what you can afford to lose.
No wonder crypto markets are so volatile. Most people have no real knowledge about bitcoin and blockchain technology in general, they just come in for the profit and they do it with borrowed money. Once the price starts to drop I bet that a lot of them just start to panic and sell, because of the fear of losing their investment and at the same time getting stuck with a loan to pay for something that they've already lost. This is really crazy, but I don't think it will stop.
In fact, i have a friend who asked for a loan to a bank of more than $10k, that loan had more than 50% of interest per year.
He bought bitcoin with that borrowed money, and he bought as many bitcoins as he could, if i am not wrong,
he bought btc when it was less than $500 each one of them.
He is still holding them, and i am not lying, i know him, and we have been being friends since we were ten years old.
He bought bitcoin with that borrowed money, and he bought as many bitcoins as he could, if i am not wrong,
he bought btc when it was less than $500 each one of them.
He is still holding them, and i am not lying, i know him, and we have been being friends since we were ten years old.
I think it's very dangerous to borrow money to invest in bitcoins, because there are risks in investing, and there is no denying that investing in bitcoins will bring benefits, benefits and risks.
This is Really crazy. Only use Money on bitcoin or other cryptos which you can afford to lose. Bitcoins value multiplied in 2017 but this does Not mean it will multiply in 2018
not all people rich, especially from third world. with the accuracy of the analysis and calculation, they can gain a bit of profit from investing in bitcoin
Or they might have to wait three years to break even again just as the borrowers in late 2013, and I remember seeing the posts from them, had to.
I guess if you're one of those people who just doesn't give a shit about debt, and there are many, then you can go bankrupt and not care. I'm allergic to any type of debt but that's a minority view these days.
18% is low in my opinion, I thought it would have been higher.
there are a lot of people who don't have financial skills and others who gamble.
I wonder when the survey was done, was it before bitcointalk.org hit 20k?
Ic it was did people cash out to pay off the debt? I doubt it.
there are a lot of people who don't have financial skills and others who gamble.
I wonder when the survey was done, was it before bitcointalk.org hit 20k?
Ic it was did people cash out to pay off the debt? I doubt it.
I don't think that investing from borrowed money is a bad thing and in fact, even i had tried and experienced it tons of times. But here using a credit card for investment capital is not a bad idea if you are having Faith in bitcoin and confidence on your gut feelings then you should little bit of risk and take trades during the deeper correction of the uptrend. But be careful during the sideways market you better stay away from trading during the sideways market, because it is better not to trade than loosing. I really like the confidence and gut feeling of these guys 
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People are putting all their hopes in BTC, and that isn't all. There are people that borrow money from banks without worring about paying 3x the amount borrowed back. Others sell everything they have to buy Bitcoins, what is much equally or risker than borrowing money. They are sure Bitcoin will continue profitable for a long time yet, 10%-20% profit people can make playing here with simple trading at exchanges without a large knowledge.
the average annual percentage rate (APR) on a credit card is 15.07 percent[/url]
The average annual return on Bitcoin is 2400%. I am not saying it is the smart thing to do but I get why they are doing it. Greed.
I am strongly against making any such investment, but till now Bitcoin has given massive amounts of returns to whomever invested in that asset. So I don't have the right to advice anyone. If they want to take the risk, then let them take it. There is also a possibility that these guys will be having a better understanding about Bitcoin when compared to me.
Yeah, must investments involved taking risk and these people that invested in bitcoin with credits wins the game. it appears the investment with the highest risks are the ones making more profits. There was a time when I read about a guy selling his house to invest the money into bitcoin around Mid-July 2017 targeting the August 1st, bitcoin hard fork that led to the creation of bitcoin cash. why is that guy by now? I know he must be very happy by now.
I would be curious to see the median credit card charge. Several people I know are interested in holding bitcoins for fun or to satisfy their own curiosity, but they don't have sufficient liquid funds and aren't willing to sell long-term assets. What they've done is financed their purchases on 0% introductory rate credit cards, to be paid off with future expected cash flows. That could explain both why some haven't paid off their cards yet and why ~70% of those believe "bitcoin is worth the interest expense". I'm sure many are irresponsibly leveraging themselves, but hopefully most fall into the former category.
It's probably not a good idea to invest for borrowed money. In the case of a fall in price, this can end with a huge debt. It's a very big risk.
This shows the greediness of humanity,people want to make quick money with bitcoin even they don't have enough money to buy bitcoins.But it is not a bad idea if you can borrow money for low interest then you can make more profits with bitcoin and can pay their debts soon.But bitcoin investments are risky so we can't say when the price rise and fall so people who investing on borrowed money taking a big risk,sometimes it will payoff but many times you gonna be a loser.So please invest the savings amount only not the borrowed money.
Quote
With cryptocurrencies trending in popularity, it seems that many investors are purchasing bitcoin on borrowed money — credit cards and loans that bear interest. The consumer group Lendedu released a report on bitcoin investors who use credit to purchase digital currencies
Which of the following best describes how you funded your account to purchase Bitcoin?
After purchasing Bitcoin on your credit card, have you paid off your credit card balance?
Are you comfortable paying interest on your credit card as a result of your Bitcoin purchase?
Are you planning to pay off your credit card balance, accumulated by purchasing Bitcoin, by using the proceeds from the sale of your Bitcoin investment?
Between people who used a credit card to fund and purchase (Question 1) Do you plan on buying additional Bitcoin using your credit card?
a. 76.23% of Bitcoin investors answered "Yes."
b. 23.77% of Bitcoin investors answered "No."
Which of the following best describes how you funded your account to purchase Bitcoin?
After purchasing Bitcoin on your credit card, have you paid off your credit card balance?
Are you comfortable paying interest on your credit card as a result of your Bitcoin purchase?
Are you planning to pay off your credit card balance, accumulated by purchasing Bitcoin, by using the proceeds from the sale of your Bitcoin investment?
Between people who used a credit card to fund and purchase (Question 1) Do you plan on buying additional Bitcoin using your credit card?
a. 76.23% of Bitcoin investors answered "Yes."
b. 23.77% of Bitcoin investors answered "No."
Source 1
Source 2
People are so crazy, really...So, 18% used a credit card, 22% of them haven't pay off their credit card balance. 1/3 are worried about the interest expense.... and 23% will continue buying additional Bitcoin using your credit card?...
the average annual percentage rate (APR) on a credit card is 15.07 percent
This is terrifying. People are so desperate with their FOMO that they're taking on high interest rate loans to buy a highly speculative and inherently worthless asset. Taking on a high degree of risk to roll it into an even higher degree of risk is just the epitome of stupidity. Risk doesn't just add in this case, it compounds. I don't wish ill on these people, but I will not feel bad if their risky behavior burns them exceptionally hard. This is a potential problem that is entirely avoidable and foreseeable. First rule of investing is not to risk anything you can't afford to lose. If you're taking out high risk loans to invest, you've completely lost focus of what you're doing, or you never understood it in the first place. People resorting to credit card loans obviously shouldn't be investing in the first place, because there are more suitable ways to get an investment loan, so it seems to indicate these people don't have access to those channels because they're not well off enough or sophisticated enough as investors.
i invest in cryptocurrency no more than 10% of my income
It's probably not a good idea to invest for borrowed money. In the case of a fall in price, this can end with a huge debt. It's a very big risk.
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