Topic: Bitcoin Investment: Good Debts vs Bad Debts - page 2. (Read 1553 times)

Depends on the interest rate of your bank. If it's two digits, on the upper side (20-30-40 percent), then it doesn't worth the risk to my mind but if it's a low percent and you have a salary enough to pay your loan and you won't ruin your life doing so, then why not? He who does not risk will never drink champagne, you know.
By the way, if someone takes a loan to buy bitcoin when it reaches its ATH, I would call it a bad debt but if someone buys for example before halving or soon after halving or after the crash of its ATH, then I would call it a good debt.

I think we should say that good debts are assets while bad debts are liabilities, and Bitcoin on the other hand could be referred as a good debt, because of its potential to rise or fall in value depending on the current nature of the market, and how long the period of investment. But however, I'm not a type who will advise people to take loan so to invest in Bitcoin, because just as the interest of your loan keeps accumulating, Bitcoin is an investment nobody is sure of it's next moved, as it is been controlled by market demand & supply. And don't be surprised that the due day you were supposed to pay back your loan, Bitcoin could be 20% lower or higher in price, depending on the nature of the market at that very moment.

"Bad Debt" is debt that you must repay yourself.
"Good Debt" is debt that you arrange for others to pay off for you.

When you take out a mortgage to acquire a rental property, this is considered good debt. If you structure the deal appropriately, the rent from the house will pay off your mortgage bills, thus allowing someone else to buy an asset for you.

Exactly what I illustrated above A car loan is to be taken considering the situation if it's to be used for industrious stuff and to save up some expenses rather than make you spend more.
Only those who are not considering their tomorrow or don't have hope and plans of paying back debt could possibly take loans and get a liability instead of investing it in something useful and beneficial.

Whenever we do decide to take up some car loan then it would really be needed for us to make up some considerations if its really that wise or ideal on doing so. Check your finances and your sources if you could be able to sustain up long term payments on which you wouldnt be ending up on giving it back to the bank just because you cant really make more payments. Its true that transportation is crucial whether from your work or business and this is what you would really be mainly be thinking off or having considerations whether its time to get one or not and also it would be depending on what type of car you are getting.
Mostly we would really be that focusing for it to be a private vehicle which we do personally be using.Its not that bad as long we can pay and its our money then its none others business
but when you are still on a situation on which you would really be struggling or you do see that its not really that the proper time on buying then better not.

Buying a private driving car with a loan is actually one of the worst ideas anyone will ever have because the expenses won't allow the person to gather enough money to pay back that loan, unless the loan is being offered by the employee of the borrower, when such a loan could be considered useful since it could be as a result of the person's transportation expenses, which will reduce, and the loan amount will be deducted from their monthly payment.

Another time a car loan could also be considered useful is if the person taking the loan has something to do and the car bought using the loan is to be used for transportation business, then it can't be considered useless since it's not a car bought to be used to settle pleasure but for business, which could be used to raise funds and the debt could possibly be paid back.

But either way, loans should be avoided if possible. Someone who owns a loan to me is considered a free man, but someone who is in bondage to its lender is not.

Debt won't last forever either, it can be good and can help someone's finances in the hope of getting a profit through their investment. Because no one will know how market conditions will go in front of them later and the certainty of getting profits is always uncertain through investment even if it's in a fairly good asset. Debt is only more suitable for those who have run their business permanently and still want to open their business branches in other places more broadly so they have to take out loans or owe other people to be able to open more businesses.

Those who owe it clearly have to pay it at a predetermined time, although there are also people who are indeed late paying it after being in debt. Whether it was intentional or not, what is clear is that he has to pay it to the party that has given him the debt even without interest. But what is more commonly found in the environment of life is that there is interest on everyone who owes it, but if you have ever owed someone with no interest applied to your debt, it means you are really lucky.

That is why in my comment above I said that debt is more suitable for those who have opened a business with a very well-established income, of course. So they won't be wrong if they want to incur debt to someone to expand their business in several places because they can pay it through the income from their first business. Whereas those who invest with debt capital will definitely find it very difficult to pay it if there is no income from other sectors in their lives so they are absolutely not suitable for making debt in any form.

Depending on how it is handled investing in bitcoin can lead to both positive and bad debts. The possibility for growth and portfolio diversification make bitcoin investments a good debt when handled wisely and with a long term perspective. However because to its extreme volatility impetuous or ignorant investments in bitcoin can result in bad debt. Changes in the value of bitcoin might result in large financial losses especially if you invest without having a firm grasp of the market. Borrowing money to invest in bitcoin further compounds risks and raises the possibility of racking up bad debt. Avoiding an undue reliance on borrowed money for speculative investments like bitcoin is a key component of prudent financial planning. It is essential to undertake in depth research consult with industry professionals and take one financial situation into account in order to successfully navigate the market and reduce risks.

Actually, being in debt to invest in bitcoin can be said to be good or bad depending on how you react to it. Because sometimes we have to get out of our comfort zone and take risks to achieve things we believe by going into debt we can overcome problems and have good prospects for changing our finances in the future. Because there are situations where borrowing money can be beneficial and even necessary. For example, investing in bitcoin at low prices and you think this is the right moment. In cases like this, loans can be things that help us achieve our goals and provide opportunities to improve our financial condition later.

However, we still have to carry out a careful evaluation when making decisions and of course based on your own circumstances and needs. because every time we owe it means we have to pay back the amount borrowed, usually with additional interest. This can cause a serious financial burden if you can't manage it properly and correctly.

So before borrowing money, it would be nice for us to carefully consider making the right decision based on your needs and what you can afford to pay on time. One more thing, borrow money according to our income, don't exceed your income, especially without any income at all, this is not very good for making loans.

There are lots of people who are really that buying tons of possible things end up on being liabilities rather than on going on investment or simply with assets on which they would really be just realizing
things then they do really come into a point on which they shouldnt be having making such decision but instead they would really be focusing more on  investing and making out some business.
Its not bad to have a car or some things that we do really like or want to buy but in the sense that you are already just focusing into that point then we should really be avoiding it.
Speaking about debts then there are indeed good and bad ones on which the bad ones would be pertaining into those car loans and mortgages which it doesnt really give out any income
or source and the good ones are to those amounts which its been applied on a business or simply that could generate income.

When you buy the car with the loan,it’s not a good idea.You have to learn the value of money and earn the money to buy a new car.If you buy car with loan,it’s not a like one.You will lose the good value of the money,it kill make you to get some more loan to pay the interest of the car.When you buy car with full settlement,you can do save of money which was spend as the unwanted interest due to the bad loan.Create your own paradise with your own earned money to buy the car to the Palace.

Basically only individuals are able to recognize the good and bad of a loan because they can better control the need to take out a loan as a business support. There are times when some people cannot see the potential of the loan they are taking and don't know what the loan is used for, so they are stuck with an unproductive loan and eventually cause problems in paying off the loan.

For me, it's okay to take a loan as long as you know what it's used for and the priority scale is needed so that someone doesn't get caught up in unproductive and priority loans, it is this scale that needs to be considered so that making an assessment of the loan is not so excessive.

This is where they must know the impact of the loan and must have the ability to control problems that will arise. Everyone must have experienced failure in their life, but loans should not be considered a joke if you do not have a special plan to support your business.

If someone is thinking of borrowing money and investing, then I would say that it is not right to borrow money and invest. After borrowing money and investing in bitcoin, if the market of bitcoin crashes, the investor will have to face a big loss. If the borrowed money is not returned at the right time.  If he can, there will be a possibility of having a big problem. So I think it is never right to invest with debt. We should stay away from investing with debt.

When you borrow money, especially for an investment, there is a time constraint and a sense of urgency to repay the loan, regardless of market conditions. When it comes to investing in Bitcoin, there is always an inherent level of risk. Borrowing for investment increases that risk, as it introduces an additional financial obligation in the form of loan repayment. Although there have been cases where individuals borrowed money to invest in Bitcoin and achieved substantial profits, But if the market crashes or goes through a prolonged decline, you may have trouble paying back your loan while your investment loses value.

Saying this that bitcoin will make you rich is easy but when a person initiate the journey of success through bitcoin then there will be lots of sacrifices which is needed to reach the destination. I don't think that just putting money in Bitcoin can make you rich but with using money as well as using your expertise, Knowing, and making your own research are all crucial things for success.

It is true that for success one should accept the risk and it is also true that bitcoin is not always a good investment option for all the users, sometimes it goes more up and investor get the benefit and on the other hand it does not go up for years and people get afraid of losing money so they prefer to sell bitcoin at risk to avoid more losses.

agree with you. Good depts and Bad debts only they know what is best for themselves.
if you have fixed income it's okay if we take loan to make more money which they choose is the best for them.
if they fail, they will learn and take lessons to find out what went wrong

Perhaps this is the only case in which you can take out a loan to buy bitcoin, but you need to be sure that bitcoin is at the very bottom, and this confidence should be very large.

Only to get bitcoin at the lowest price when you have the ability to repay the loan from other sources of income. But if you make a mistake with the entry point and pay off the loan all this time, and the price of bitcoin continues to fall, then it turns out that the strategy turned out to be wrong and in the end you bought bitcoin more expensive than you could, and you will also need to take into account the overpayment that you made on credit.

There are many people around me who buy cars to transport vegetables and other goods to the market to sell, do you think this kind of loan is not productive?

I think when people take loans they need to think about how to generate finances on a regular basis, so that there are no problems with monthly fees with the lender. Taking out a loan to buy Real Estate, precious metals and commodities is not a small number and this kind of loan pattern cannot be done by people who do not have regular income.

Wealthy people take loans to build existing businesses and invest as you mentioned above, so there's no big problem for them with loans. Whereas poor people take loans to build a business from scratch and as a result when the business is not going well they will have big problems related to loans.

Loans that are good or bad only the person himself knows, when you try to take out a loan to make an investment, the question is how do you pay off the loan debt if you have no other source of income besides investing. To me the basis for this type of loan is very poor because we all know the volatility of Bitcoin prices is very erratic.

Bitcoin investment promises big profits so we have to be brave to invest, unfortunately many people don't have money to invest, the last option is of course to dare to take on debt, if we dare to take on debt now then the opportunity for profit is very large because early 2024 there will be a halving that will make we get big profit.

the bank that gives the loan also knows about it. from monthly income to expenses. they chase after you when your income is high like a free credit card.
Viewed from any angle debt is not good. and banks prefer to provide debt to entrepreneurs