Taking a loan to buy bitcoin - page 4.

phillipsjk

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Let the chips fall where they may.

Quote from: flipstyle on January 16, 2015, 01:26:37 AM

Why don't you do the actual rational thing and wait to see if your currently owned bitcoins ever get remotely close to your purchasing price before you try and double your risk factor at a huge loss?

Because averaging my cost per Bitcoin by buying cheap does not double my risk factor. It only increases it by about 50%; since the price of Bitcoin can only go down to 0. I can still liquidate my previously purchased Bitcoin at a 50% loss.

The year previous, I bought at $100, and sold at an average price of about $500 (missed selling at the peak by a month or so). Waiting for the price to rise again is just asking to buy high, sell low. I prefer to buy low, sell high. The difficulty of course is that nobody knows which way the price will swing at any given moment.

Hyena

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Quote from: chesthing on January 16, 2015, 12:30:16 AM

Quote from: Hyena on November 27, 2013, 11:31:15 AM

do it!

Worst. Advice. Ever.

We're smart in retrospect, aren't we? Do you seriously think that there will ever be low risk high reward situations? If you're not willing to take risks you will never succeed. NEVER! My advice is always to take risks. Obviously it means that you will fail a lot but trivial probability theory and mathematical statistics say that if you get up and keep going after every setback then you will eventually succeed. Or, you will never succeed because you are motivated by the wrong reasons

CoinCidental

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Si vis pacem, para bellum

everyone knows its extremely volatile new age technology and will rise again ,the only question is when ......

flipstyle

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Quote from: phillipsjk on January 15, 2015, 11:42:15 PM

Quote from: phillipsjk on December 02, 2013, 11:34:03 PM

I am considering a loan myself: but not until I have the cash-flow to avoid being forced to sell early.

Essentially, you should be able to comfortably service the debt for a year or more as the price of Bitcoin goes through it's usual roller-coaster. That implies you should avoid loans that require you to sell if the price of Bitcoin drops too much as well.

I was dumb and did not follow my advice: Bought at a "low" of $400 in November (before having enough income to choose when to sell)

Quote from: phillipsjk on December 03, 2013, 02:38:09 PM

Quote from: Gabrie on December 03, 2013, 02:08:38 PM

I'm very new to bitcoin and read in this thread about a crash that BTC went through. What happened at the last crash of BTC? Did it go down very fast, too fast to respond if I need at least half a day to respond?

Say BTC indeed does go belly up, would you still have time to take your losses (sell at too low price) or is there a chance it would drop to zero all at once?

The bulk of the last crash happened within about 2 hours. After about a day, the price did drop in half again, but there is no guarantee that would happen every time.

For Bitcoin to go to zero, something drastic would have to have happened. I missed a $150-$300 buy window because I did not want to take a loan. I don't think the Price will drop below $300, but I don't know where the real "floor" price is.

Looks like I was wrong about the $300 price floor. I did the math, and can't get money to the exchange until the 27th (5 business day hold at bank + 2 business day transfer to exchange, including 2 weekends).

Kinda want to double-down so my average price is around $300. I have no idea if Bitcoin is going to be worth more or less than $250 in 12 days.

Why on god's green earth would you try and make the same mistake twice, after already being remorseful about your initial decision?

This is beyond me.

Why don't you do the actual rational thing and wait to see if your currently owned bitcoins ever get remotely close to your purchasing price before you try and double your risk factor at a huge loss?

You know...like actually 'learn' from the mistakes of yourself and others on this forum who kept buying and taking out loans while taking losses until they stopped posting and disappeared.

chesthing

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Quote from: Hyena on November 27, 2013, 11:31:15 AM

do it!

Worst. Advice. Ever.

phillipsjk

legendary

Activity: 1008

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Let the chips fall where they may.

Quote from: phillipsjk on December 02, 2013, 11:34:03 PM

I am considering a loan myself: but not until I have the cash-flow to avoid being forced to sell early.

Essentially, you should be able to comfortably service the debt for a year or more as the price of Bitcoin goes through it's usual roller-coaster. That implies you should avoid loans that require you to sell if the price of Bitcoin drops too much as well.

I was dumb and did not follow my advice: Bought at a "low" of $400 in November (before having enough income to choose when to sell)

Quote from: phillipsjk on December 03, 2013, 02:38:09 PM

Quote from: Gabrie on December 03, 2013, 02:08:38 PM

I'm very new to bitcoin and read in this thread about a crash that BTC went through. What happened at the last crash of BTC? Did it go down very fast, too fast to respond if I need at least half a day to respond?

Say BTC indeed does go belly up, would you still have time to take your losses (sell at too low price) or is there a chance it would drop to zero all at once?

The bulk of the last crash happened within about 2 hours. After about a day, the price did drop in half again, but there is no guarantee that would happen every time.

For Bitcoin to go to zero, something drastic would have to have happened. I missed a $150-$300 buy window because I did not want to take a loan. I don't think the Price will drop below $300, but I don't know where the real "floor" price is.

Looks like I was wrong about the $300 price floor. I did the math, and can't get money to the exchange until the 27th (5 business day hold at bank + 2 business day transfer to exchange, including 2 weekends).

Kinda want to double-down so my average price is around $300. I have no idea if Bitcoin is going to be worth more or less than $250 in 12 days.

stonerider

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Hindsight is always 20/20.

Merry Christmas, y'all!

opossum

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Quote from: faince222 on December 23, 2014, 06:12:16 PM

Quote from: riiiiising on December 23, 2014, 06:07:52 PM

Quote from: faince222 on December 23, 2014, 05:51:56 PM

Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

You're total crazy. It's a very bad idea to get a loan to increase your bitcoin balance. Bitcoin is too much speculative for invest a great quantity of money (Especially if you get loan for invest). Try to earn in other way.

Well, his post was from one year ago, so he's already lost his money. No sense trying to persuade him now.

If nothing else, this thread serves as a reminder that it's typically not wise to listen to the loudest voices on this forum. For the past year we've had men with castles, tailored suits, and fancy graphics telling us that another rally is inevitable, and by last summer the idea had become so pervasive that it became axiomatic around here. Lots of people made bad decisions, meanwhile calling out all the voices of reason as "trolls". 2014... not a proud year for the community.

But I think that in 100% of case it's a bad idea to invest in something if money is not yours. Consider that no one can know what price will be tomorrow, It's very a crazy action invest money (that you have loaned) in something of this. And it's very crazy for bank that give loan for this kind of people.

This is not always the case. Using leverage (borrowed money) can sometimes be useful if your trade is successful, you just need to have the discipline to close your position before you lose all your equity (although most exchanges will do this for you if you are borrowing via the exchange)

Omikifuse

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Quote from: Sophokles on December 23, 2014, 06:03:15 PM

So what happened to OP? Looks like he didn't post since end of last year. Did he finally go through with his plan to borrow 100k$ to buy BTC?

If he was quick and good timed he must be enjoying the profits because prices more than doubled in december.

If not or if he decided to HODL to the end he probably got disappointed by his loss and probably abandoned BTC. Or maybe he had to cancel internet in order to be able to pay for loan

HeliKopterBen

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Quote from: Miz4r on December 23, 2014, 06:33:58 PM

Quote from: riiiiising on December 23, 2014, 06:07:52 PM

Well, his post was from one year ago, so he's already lost his money. No sense trying to persuade him now.

If nothing else, this thread serves as a reminder that it's typically not wise to listen to the loudest voices on this forum. For the past year we've had men with castles, tailored suits, and fancy graphics telling us that another rally is inevitable, and by last summer the idea had become so pervasive that it became axiomatic around here. Lots of people made bad decisions, meanwhile calling out all the voices of reason as "trolls". 2014... not a proud year for the community.

Do you realize you were one of those loud voices yourself? Interesting how the same people who shouted at all the bears months ago calling them trolls now do the exact opposite and shout at their former selves... it would be funny if it wasn't so retarded.

Outspoken bulls becoming bears typically occurs near bottoms. Epic rally lies just ahead.

Miz4r

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Quote from: riiiiising on December 23, 2014, 06:07:52 PM

Well, his post was from one year ago, so he's already lost his money. No sense trying to persuade him now.

If nothing else, this thread serves as a reminder that it's typically not wise to listen to the loudest voices on this forum. For the past year we've had men with castles, tailored suits, and fancy graphics telling us that another rally is inevitable, and by last summer the idea had become so pervasive that it became axiomatic around here. Lots of people made bad decisions, meanwhile calling out all the voices of reason as "trolls". 2014... not a proud year for the community.

Do you realize you were one of those loud voices yourself? Interesting how the same people who shouted at all the bears months ago calling them trolls now do the exact opposite and shout at their former selves... it would be funny if it wasn't so retarded.

faince222

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Quote from: riiiiising on December 23, 2014, 06:07:52 PM

Quote from: faince222 on December 23, 2014, 05:51:56 PM

Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

You're total crazy. It's a very bad idea to get a loan to increase your bitcoin balance. Bitcoin is too much speculative for invest a great quantity of money (Especially if you get loan for invest). Try to earn in other way.

Well, his post was from one year ago, so he's already lost his money. No sense trying to persuade him now.

If nothing else, this thread serves as a reminder that it's typically not wise to listen to the loudest voices on this forum. For the past year we've had men with castles, tailored suits, and fancy graphics telling us that another rally is inevitable, and by last summer the idea had become so pervasive that it became axiomatic around here. Lots of people made bad decisions, meanwhile calling out all the voices of reason as "trolls". 2014... not a proud year for the community.

But I think that in 100% of case it's a bad idea to invest in something if money is not yours. Consider that no one can know what price will be tomorrow, It's very a crazy action invest money (that you have loaned) in something of this. And it's very crazy for bank that give loan for this kind of people.

riiiiising

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Activity: 336

Merit: 100

Quote from: faince222 on December 23, 2014, 05:51:56 PM

Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

You're total crazy. It's a very bad idea to get a loan to increase your bitcoin balance. Bitcoin is too much speculative for invest a great quantity of money (Especially if you get loan for invest). Try to earn in other way.

Well, his post was from one year ago, so he's already lost his money. No sense trying to persuade him now.

If nothing else, this thread serves as a reminder that it's typically not wise to listen to the loudest voices on this forum. For the past year we've had men with castles, tailored suits, and fancy graphics telling us that another rally is inevitable, and by last summer the idea had become so pervasive that it became axiomatic around here. Lots of people made bad decisions, meanwhile calling out all the voices of reason as "trolls". 2014... not a proud year for the community.

Sophokles

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So what happened to OP? Looks like he didn't post since end of last year. Did he finally go through with his plan to borrow 100k$ to buy BTC?

faince222

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Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

You're total crazy. It's a very bad idea to get a loan to increase your bitcoin balance. Bitcoin is too much speculative for invest a great quantity of money (Especially if you get loan for invest). Try to earn in other way.

maker88

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Activity: 336

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Quote from: riiiiising on December 23, 2014, 03:36:18 PM

Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

This is what happens when you give in to the echo chamber and dismiss all critics as "trolls". You sell your house for bitcoins or take out high interest loans from the bank. Just a reminder people: don't buy bitcoin. But if you do, don't invest more than you're willing to lose. Because you are going to lose.

Quote from: riiiiising on October 08, 2014, 11:01:44 AM

Gentle reminder to the bear-tards, if you don't support bitcoin, then why are you here? I'm glad the moderators banned fallllling and all his dumbass alts. Anyone who is bearish on bitcoin does not belong here, and should be investing in the stock market (which has crashed massively this week, by the way).

Bitcoin users not effected!

shut up and go invest in the stock market. if youre already invested then just shut up.

riiiiising

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Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

This is what happens when you give in to the echo chamber and dismiss all critics as "trolls". You sell your house for bitcoins or take out high interest loans from the bank. Just a reminder people: don't buy bitcoin. But if you do, don't invest more than you're willing to lose. Because you are going to lose.

Ibian

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Quote from: glen hodl on April 08, 2014, 02:49:07 PM

Quote from: wopwop on November 27, 2013, 11:48:42 AM

Quote from: stevebc on November 27, 2013, 11:46:13 AM

Quote from: wopwop on November 27, 2013, 11:41:35 AM

Quote from: Miz4r on November 27, 2013, 11:37:40 AM

Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

There have been many people in here asking about the same thing and I think it's a recipe for disaster and would not recommend it. Invest what you can afford to lose, if you become too greedy it could very well come back and bite you in the ass (and karma says it will). You will live in regret for the rest of your life. Don't do it, if bitcoin succeeds a few bitcoins will be enough to buy a house or two.

Let's say someone took a loan of $100k in september and put it into Bitcoin, he would have made about $900k minus interest in just less than 2 months. There's no going wrong here.

If I take a loan now of $100k and put it into Bitcoin, it might be worth 10x in just a few months. Worst case scenario it will bubble to $9k and back to $1k, then I would have only lost the interest on the loan. It's a winner bet to become a millionaire from just one simple move at the moment, with no losing edge in sight.

So the worst case scenario you see is that BTC goes to $9000, then falls back to $1000? You see absolutely no other scenario worse than that???
I'm holding my bitcoins, but having such blind faith in your predictive abilities is dangerous.

Bitcoin doesn't go down in price over longterm, this is a fact. With this fact I can deduce that it will never go longterm below $1000 anymore. It's simple really.

Define longterm.

How about a year ago. Really, the price history is no secret.

glen hodl

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Quote from: wopwop on November 27, 2013, 11:48:42 AM

Quote from: stevebc on November 27, 2013, 11:46:13 AM

Quote from: wopwop on November 27, 2013, 11:41:35 AM

Quote from: Miz4r on November 27, 2013, 11:37:40 AM

Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

There have been many people in here asking about the same thing and I think it's a recipe for disaster and would not recommend it. Invest what you can afford to lose, if you become too greedy it could very well come back and bite you in the ass (and karma says it will). You will live in regret for the rest of your life. Don't do it, if bitcoin succeeds a few bitcoins will be enough to buy a house or two.

Let's say someone took a loan of $100k in september and put it into Bitcoin, he would have made about $900k minus interest in just less than 2 months. There's no going wrong here.

If I take a loan now of $100k and put it into Bitcoin, it might be worth 10x in just a few months. Worst case scenario it will bubble to $9k and back to $1k, then I would have only lost the interest on the loan. It's a winner bet to become a millionaire from just one simple move at the moment, with no losing edge in sight.

So the worst case scenario you see is that BTC goes to $9000, then falls back to $1000? You see absolutely no other scenario worse than that???
I'm holding my bitcoins, but having such blind faith in your predictive abilities is dangerous.

Bitcoin doesn't go down in price over longterm, this is a fact. With this fact I can deduce that it will never go longterm below $1000 anymore. It's simple really.

Define longterm.

Dafar

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dafar consulting

Quote from: wopwop on November 27, 2013, 11:29:47 AM

I'm thinking of getting a loan to buy more bitcoin, as I'm guessing we'll reach $10K in a few months it can be a good deal to lend at a bank against 5% anual rate

Did anyone do this before? Would like some experience advice

wow, nice to see some highly optimistic (slightly delusional) people around.. where were you guys?

edit-- I just realized the date of OP's post... lol...

Topic: Taking a loan to buy bitcoin - page 4. (Read 23553 times)