Topic: Taking a loan to buy bitcoin - page 7. (Read 23553 times)
Hopefully OP hasn't used his loan to buy into the market yet. I would advise giving it a little more time to see where the dust settles on this current market correction.
Signing a loan, receiving the money, wiring said money to an exchange and deciding on an entry point(s) takes time guys. Honestly, to me, wopwop's timing couldn't have been more perfect.
If serious, the timing could not have been worse. It crashed the night of the 4th.. at least, in CST.
I hate to do that but i told you so. (Like so many others around with common sense) 
Bitcoin is much easier to manipulate than gold. Media and press can easily inspire confidence or fear in the coin to manipulate prices.
One more piece of advice, son.
Never bet more than what you can afford to lose.
In all my life, I've never believed in free lunches.
You lose something every time you gain.
Tread with care. :-)
Never bet more than what you can afford to lose.
In all my life, I've never believed in free lunches.
You lose something every time you gain.
Tread with care. :-)
Just wanted to revisit this thread to say that i hope that non of you actually took out loans to buy BTC and for this to stay on top for others who would ever consider to take a loan to invest in speculative vehicles like BTC in the future!
Right. NOW is the time to take out the loan~!
ouch, looking at the timing of this....
went on with it, let's see how it goes!
so excited!!
so excited!!
Guess it's too late, keep us updated on the terms and period and how it'll work out with your personal life, if nothing else can be a lesson to others
Don't just assume that BTC will go to the moon and which Ferrari you'll buy first. Play out BTC crashing 50% and bank calling your loan scenario. Will you loose your collateral? Your house, your car, your credit history? Will you get a second job to try and salvage what you can? Or you can always double down and dig deeper into the hole. Borrow from another bank at even higher % to pay the first one. Borrow from your friends/family? Work the corner or try to sell your drugs? Sorry to be a downer but there's a reason why no sane financial adviser would recommend taking a loan to finance an investment that you have no control over. But ignore all that and let's just concentrate on Ferraris Lambos and those huge mansions
Just wanted to revisit this thread to say that i hope that non of you actually took out loans to buy BTC and for this to stay on top for others who would ever consider to take a loan to invest in speculative vehicles like BTC in the future!
i do not know that it is in bubble mode. bubbles are fragile structures inflated by a force which, once withdrawn, results in the collapse of the structure. forces implying a higher bitcoin price are increasing, not decreasing, and show no signs of being near the limits of their increase. bubbles are not supported by the rationally discounted future fair value or cash flows. the price of bitcoin is more than supported by its rationally discounted future fair value.
the only way you could infer that bitcoin was in a bubble would be if you were convinced that its future fair value, after discounting for risk-free rates and the error distribution attributed to your future value estimate, was insufficient to support current price levels. you might be convinced of this by established fact and sound reasoning (necessary or probabilistic), or you might be convinced of this by "intution" or "peer-pressure" or "a skeptical disposition" or sunk cost fallacies, normality bias, etc. if you have established facts and sound reasoning which leads you to such skepticism, please do share them. no one can anticipate all unknown facts or creative proofs, and no one wants to be deluded by their ignorance or lack of time to explore the full space of inference. if you do not, then please reconsider your convictions - and especially please reconsider whether you should be spreading fallacious or delusional ideation.
the only way you could infer that bitcoin was in a bubble would be if you were convinced that its future fair value, after discounting for risk-free rates and the error distribution attributed to your future value estimate, was insufficient to support current price levels. you might be convinced of this by established fact and sound reasoning (necessary or probabilistic), or you might be convinced of this by "intution" or "peer-pressure" or "a skeptical disposition" or sunk cost fallacies, normality bias, etc. if you have established facts and sound reasoning which leads you to such skepticism, please do share them. no one can anticipate all unknown facts or creative proofs, and no one wants to be deluded by their ignorance or lack of time to explore the full space of inference. if you do not, then please reconsider your convictions - and especially please reconsider whether you should be spreading fallacious or delusional ideation.
First off your bolded statement is nonsensical. Bitcoin is not an investment that "generates future cash flows". Bitcoin is most like a commodity with some intrinsic value but is also highly speculated in (similar to gold). However it differs from traditional commodities mainly in that there is rapid growth in how many people are learning about bit coin and adopting it.
What is driving the price up is:
New users who are using bitcoin for its intrinsic value
Speculators
When the growth of new users stalls there will be some sort of crash. I will post an in depth article on this soon.
Quote
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 $1000 anymore. It's simple really.
You mean induce...because you've only made a prediction. Your analysis only suggests that it is possible that your claim is cogent. Actually, what you mean to state is that from prior patterns, Bitcoin probably won't go down in the long term. The best course of action for you to take is to only invest what you can afford to lose.
went on with it, let's see how it goes!
so excited!!
so excited!!
be prepared if you go in the red
when this happened to me I bought more.
I couldn't care less if a BTC is ever used in a point of sale transaction. There are many investors like myself who only see it as a store of value to be cashed in/out at exchanges.
+1337
Yeah people keep talking about various psychologic barriers like 1000$ or the value of gold but noone talks about the real barrier for the geeky community that is bitcoin
Bad idea. Just buy a little each week, like a retirement account.
went on with it, let's see how it goes!
so excited!!
so excited!!
I don't think its a good idea... at all...
But its not my money or credit that's on the line...
And since you already did it, all I can say is good luck! Hope your rich soon
went on with it, let's see how it goes!
so excited!!
so excited!!
I think everyone knows bitcoin is in bubble mode right now, 12B in market cap isn't justified by the amount of transactions that occur, alot of the money in BTC is speculation. The amazing thing about BTC though is that it still has the potential to rise significantly. I could see 10k a coin.
I couldn't care less if a BTC is ever used in a point of sale transaction. There are many investors like myself who only see it as a store of value to be cashed in/out at exchanges.
Why would anyone use bitcoin as a store of value as opposed to precious metals like gold and silver? I think bitcoin has use as a means of moving money between countries, for purchasing items not priced in fiat (ie silkroad), or as a speculative investment.
The truth is those who are in bitcoin for speculative purposes have an endgame plan of holding USD. It is these people who will pump a bubble and sell into a crash.
For me it's also a hedge against failing fiat. Less of a concern for me since I'm not american or greek, but no western countries are safe.
I am a huge fan of bitcoin but:
It is not safer: Gold has been a store of value for thousands of years, bitcoin is going on 5. Gold prices although fueled by speculation is alot more stable, gold won't fall overnight too $1000/oz but bitcoin could fall to $50/coin within a matter of a few days.
Gold is very easy to get, you can buy it online or through multiple physical locations.
Bitcoin is much easier to manipulate than gold. Media and press can easily inspire confidence or fear in the coin to manipulate prices.
I agree holding a bunch of fiat is terrible, but bitcoin shouldn't be a wealth preservation strategy, but a speculative investment or a hobby.
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
Did anyone do this before? Would like some experience advice
Debt.
I think everyone knows bitcoin is in bubble mode right now, 12B in market cap isn't justified by the amount of transactions that occur, alot of the money in BTC is speculation. The amazing thing about BTC though is that it still has the potential to rise significantly. I could see 10k a coin.
I couldn't care less if a BTC is ever used in a point of sale transaction. There are many investors like myself who only see it as a store of value to be cashed in/out at exchanges.
Why would anyone use bitcoin as a store of value as opposed to precious metals like gold and silver? I think bitcoin has use as a means of moving money between countries, for purchasing items not priced in fiat (ie silkroad), or as a speculative investment.
The truth is those who are in bitcoin for speculative purposes have an endgame plan of holding USD. It is these people who will pump a bubble and sell into a crash.
For me it's also a hedge against failing fiat. Less of a concern for me since I'm not american or greek, but no western countries are safe.
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