Doesn't every loan have a time limit to repay? What if your scenario doesn't work? Let's imagine this: you borrow cash while you still have Bitcoins. But until the time limit of the loan, Bitcoin price drops drastically and you lose. Isn't that more inflict a financial loss? This is not a smart way to go.
Everybody knows how it can pay it loan and it's clear that every loans have it limit the way I'm seeing loan things, a loan itself is something i know that can be repay according to agreement time, taking a load from the someone and buy Bitcoin and that load itself is used to buy Bitcoin and Bitcoin falls unexpected, the loan most be pay back because an agreement 
Topic: Borrow fiat with your Bitcoin and never sell (Read 1173 times)
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Everybody knows how it can pay it loan and it's clear that every loans have it limit the way I'm seeing loan things, a loan itself is something i know that can be repay according to agreement time, taking a load from the someone and buy Bitcoin and that load itself is used to buy Bitcoin and Bitcoin falls unexpected, the loan most be pay back because an agreement Does anyone else plan on doing this?
It is true that cash transfers may be expensive and time consuming, but banks should not charge this fee in the first place because the amount of money the bank charges for a loan depends on how much money people want to save.
Well, continuing from the topic of conversation above, I think Bitcoin has been used by many consumers because it eliminates the need to have a credit card. Instead, linking your bank account information directly to your Bitcoin wallet, this allows us to bypass middlemen and make transactions without involving large financial institutions.
While this is certainly a positive step in the right direction, the cash market benefits borrowers at the expense of borrowers.
Doesn't every loan have a time limit to repay? What if your scenario doesn't work? Let's imagine this: you borrow cash while you still have Bitcoins. But until the time limit of the loan, Bitcoin price drops drastically and you lose. Isn't that more inflict a financial loss? This is not a smart way to go.
I don't see anything wrong with this if you find any money lending bank that will grant you the loan, I think this depends on the duration of the loan, it will be fine if anything above 4 -10+ years for repayment period and during a zero or low interest rate period, but now the interest rate are on the high side for one to borrow.
However, it could be a wise decision in the end. Michael Saylor sometime did borrow money to buy Bitcoin during the zero interest rate period before the last bull market, and I guess he must have paid off the loan because after that Bitcoin had that moon shot to 69k.
But where I'm worried is the condition of the loan using Bitcoin as collateral , tell me are you gonna transfer the Bitcoin to them or what?
4 to 10 years is too good to be true. On many lending companies that I inquire, their terms are only short. They need the money as soon as possible so that they can accommodate other loaners. The interest rate for them is also high and I think there is no such thing as zero interest rate because how can they earn that way? And what I know is that interest rate depends on the longevity of the loan.However, it could be a wise decision in the end. Michael Saylor sometime did borrow money to buy Bitcoin during the zero interest rate period before the last bull market, and I guess he must have paid off the loan because after that Bitcoin had that moon shot to 69k.
But where I'm worried is the condition of the loan using Bitcoin as collateral , tell me are you gonna transfer the Bitcoin to them or what?
The longer you pay it, the higher the interest you're going to pay but yes we need to transfer our collateral to the lender. This sounds risky but this is only for the protection of the lender. What if the loaner won't pay the money that they borrow?
I don't like something difficult when I actually have an easy choice. I mean why hold bitcoin and give it as collateral for a loan while I can sell it if needed? If bitcoin is meant to be a long term investment, then I need to have a spare fund other than bitcoin that I can use, that's a basic plan before investing. If I really don't want to touch bitcoin when I need money, then I really need to have a reserve fund.
The OP can do it where it's probably best for him, but if it's me then I'm more likely to sell bitcoin as necessary if I no longer have spare funds to work with. Everything is risky due to price volatility, but anything complicated should probably be avoided.
The OP can do it where it's probably best for him, but if it's me then I'm more likely to sell bitcoin as necessary if I no longer have spare funds to work with. Everything is risky due to price volatility, but anything complicated should probably be avoided.
Mortgaging your Bitcoin for Fiat is not a bad idea but i hope you fully put modalities in place to remedy any unforeseen future circumstances. Doing this would save you the idea of selling making you hodle for long. Selling your Bitcoin wouldn't be an option with this step as you would definitely have some fiat with you. However, it's not just borrowing with Bitcoin as a collateral what do you intend doing with the loan to get you profit because this should be your thought at first as you know it's a big risk to take. You just have to make a good investment on the loan so as to save you more money getting more Bitcoin as you know Bitcoin price is volatile. This would have you to hodle your Bitcoin for long pending wen your loan is due for payment by then, you must have made more profit to acquiring more Bitcoin added to your portfolio.
If you do have enough Bitcoin in your possession this might mean you might not need to borrow because I would believe you have had enough to invest in that amount of Bitcoin. Why would you have to borrow when you know you would still be paying interest on the amount you borrowed or maybe you want to invest that cash in another profit-generating investment plus let us not forget that there is nothing wrong with taking profit from what you have invested over time. You can not HODL your Bitcoin investment forever without taking profit for yourself then why have you invested in the first place?
Life is challenging and very complex my dear friend!
Do you remember some time ago when Elon Musk decided to sell some of their Bitcoins? They claimed they needed some liquidity for future expenditure, I don't know how true this claim is but if at all Tesla actually has a platform they can take borrow that from, the bitcoin they sold would have acted as collateral for them because it is something they can pay back in future without selling their bitcoin but the question is, is there any decentralised protocol that can actually lend Tesla that kind of liquidity they needed? There is none and they were also not ready to take any risk with their bitcoin because most of the decentralized protocols that we have are full of shits that get exploited every time.
If you have your bitcoin as an investment and you need some cash as an emergency for short time and you don't have any means, you can always borrow but you have to borrow less amount in a way that your bitcoin will be overcollateralized so that you don't get liquidated in case of a price crash and margin calls.
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Well obviously avoid it if you can. Don't invest if you don't have the money to do so. It is that simple. Surely there would be some people trying to justify that it could help your credit score, but who know what crypto will bring to your borrowed money in the next few years.Is it a gain or nah? Imagine if you bought some Bitcoin back around when it was 64k, but then now it is 19.2k and your loan is almost reaching its repayment date.
I don't see anything wrong with this if you find any money lending bank that will grant you the loan, I think this depends on the duration of the loan, it will be fine if anything above 4 -10+ years for repayment period and during a zero or low interest rate period, but now the interest rate are on the high side for one to borrow.
However, it could be a wise decision in the end. Michael Saylor sometime did borrow money to buy Bitcoin during the zero interest rate period before the last bull market, and I guess he must have paid off the loan because after that Bitcoin had that moon shot to 69k.
But where I'm worried is the condition of the loan using Bitcoin as collateral , tell me are you gonna transfer the Bitcoin to them or what?
However, it could be a wise decision in the end. Michael Saylor sometime did borrow money to buy Bitcoin during the zero interest rate period before the last bull market, and I guess he must have paid off the loan because after that Bitcoin had that moon shot to 69k.
But where I'm worried is the condition of the loan using Bitcoin as collateral , tell me are you gonna transfer the Bitcoin to them or what?
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Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.
Yes, that is the best way to overcome such challenges in the community,because borrow money from the bank or clubs to invest on bitcoin is not advisable to bitcoiners than to invest the little capital you have on bitcoin and wait for the bullish season to come before you can sell to make a huge income from your investment. Since we are still experiencing bearish market, I think any amount of money you invest on Bitcoin now, it will help you in future when the price of Bitcoin hit higher soon before you can sell to settle some debt you own than borrowing money to buy Bitcoin.But if you take it, and then you end up with paying it back without selling your coins, that means it was a good loan because you paid it back AND you have your coins staying. That’s a good loan and you should consider it. Learn the difference and you should be doing a lot better in the long run.
I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.
This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.
I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.
Does anyone else plan on doing this?
If you do have enough Bitcoin in your possession this might mean you might not need to borrow because I would believe you have had enough to invest in that amount of Bitcoin. Why would you have to borrow when you know you would still be paying interest on the amount you borrowed or maybe you want to invest that cash in another profit-generating investment plus let us not forget that there is nothing wrong with taking profit from what you have invested over time. You can not HODL your Bitcoin investment forever without taking profit for yourself then why have you invested in the first place? This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.
I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.
Does anyone else plan on doing this?
I suggest, do not occasionally invest with borrowed money, it is very risky,
you do not know what the future investment will be like, even though bitcoin is quite promising, but you have to stay on guard for the possibility that is not good.
because if you invest or buy bitcoin with borrowed money, it will make you uncomfortable with the investment,
because there will be high anxiety and worry,
so my advice, invest with cold money to be more calm.
you do not know what the future investment will be like, even though bitcoin is quite promising, but you have to stay on guard for the possibility that is not good.
because if you invest or buy bitcoin with borrowed money, it will make you uncomfortable with the investment,
because there will be high anxiety and worry,
so my advice, invest with cold money to be more calm.
I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.
This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.
This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.
It may seem like a smart idea by using Bitcoin as collateral for half of its worth in fiat currency, but to me, I'm the type of person who doesn't encourage borrowing at all, because I know how it feels to borrow, how it could put you in the state of unrest, sleepless night and makes you uncomfortable until finally paid off, as nobody can predict tomorrow. And one thing to always consider about borrowing is the interest rate, i.e is the interest rate high or is it low, and can I afford to pay such a rate or e.t.c. So for me, I rather prefer to be patient, save consistently and when I have enough funds, embark on that project I have in mind than borrow, just for peace of mind.
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Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.
Yes, that is the best way to overcome such challenges in the community,because borrow money from the bank or clubs to invest on bitcoin is not advisable to bitcoiners than to invest the little capital you have on bitcoin and wait for the bullish season to come before you can sell to make a huge income from your investment. Since we are still experiencing bearish market, I think any amount of money you invest on Bitcoin now, it will help you in future when the price of Bitcoin hit higher soon before you can sell to settle some debt you own than borrowing money to buy Bitcoin.
This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.
Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.
It can be managed without taking a loan but some people have the habit of taking a loan to start out on trading and not think of the consequences of a debt. Few people actually want to start with their own capital directly kotha ven though they have to pay more from their pocket in case they lost money.
Cycling between the bull and bear cycles is what leads to good profits but slow indeed. Still it is the safer bet than taking a loan and going for trades with high risk than profit.
Yeah this was obvious exploit in monetary system. Under heavy inflation its best to borrow lot of money to buy precious things like cars, houses, gold where you can get direct advantage. Bitcoin is now another option. If you have wage, its best to borrow money, buy Bitcoin in bottom, cover your borrowed money with your wage, and take profits from Bitcoin. Its easiest get rich quick method I can see yet, its very risky. Never lose your job unless you become millionaire!
Feds is increasing interest rates on loans and other commodities. I doubt that this is still a food idea since the plan is use Bitcoin as collateral but what if the interest rate of the loan increased while Bitcoin price decrease since its the direction of the market. The Op might end up lose all of his BTC holdings while still pays the interest of the loan since the value of the property is half the amount of Bitcoin while he didn’t consider paying the interest of his loan to his plan.
Yeah this was obvious exploit in monetary system. Under heavy inflation its best to borrow lot of money to buy precious things like cars, houses, gold where you can get direct advantage. Bitcoin is now another option. If you have wage, its best to borrow money, buy Bitcoin in bottom, cover your borrowed money with your wage, and take profits from Bitcoin. Its easiest get rich quick method I can see yet, its very risky. Never lose your job unless you become millionaire!
In situations like this, there is always some risk involved, and if you borrow fiat dollars as security for this, you will have to pay interest on the borrowed dollars. Platforms for financing are virtually astounding right now. In addition to being centralized and in control of your money, this business also has the potential to file for bankruptcy at any time, meaning the owner could depart at any time without warning. When the time comes, your Bitcoin will be destroyed, there is no chance for you to use the Bitcoin provided as collateral, and it is lost forever. Therefore, give these things some thought before you do them to avoid regret.
to be honest with this situation, i won't do what the OP is planning to do. unless, he has other resources that can back up his loan. also, when it comes to fiat loan, usually, you need to pay interest for certain period of time. do you think it is worth paying those interests while waiting for your bitcoin to get a good value? in this market, you'll never know what comes next. very risky if this is the only funds available to you. you may end up paying more because of the interest incurred during your loan term. and suddenly, the lending platform got away with your btc collateral, not only you but all the others who trusted their site! that's what you call bad fate.
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