It will never be a smart decision if you take loans so you can invest. Though investing is a wise decision, but knowing you borrowed money for that, that makes it very unhealthy for an investor. However, if you have other sources to pay your debt and that they always generate an income, borrowing money may be somehow reasonable. But for a beginner who makes crypto as his first investment, then he should save for its funds first before he decide to take the risk in investing.
I agree that taking a loan to invest in cryptocurrency is very risky and carries huge risks. It makes sense to take a loan for a business that is established and brings a stable profit, and a loan is needed to scale up and increase capacity, wich will close this loan. And investment in cryptocurrency can be either unprofitable or long-term, and you need to start repaying a loan after the first month. 
Topic: Taking loan during high inflation? - page 6. (Read 979 times)
Inflation or no inflation to me taking a loan to buy asset is just another glorified debts. In my very eventful few years of crypto-Currency I have come to understand that it’s very wrong to take a loan to buy any Crypto-currency asset, so inflation aside I believe a loan is a bondage and using it to buy an asset as volatile as crypto-currency is very far foolish, that’s where the start slow and rise steady comes in, Crypto-currency is very much unpredictable and taking loan to enter it can be a bad decision.
It will never be a smart decision if you take loans so you can invest. Though investing is a wise decision, but knowing you borrowed money for that, that makes it very unhealthy for an investor. However, if you have other sources to pay your debt and that they always generate an income, borrowing money may be somehow reasonable. But for a beginner who makes crypto as his first investment, then he should save for its funds first before he decide to take the risk in investing.
Inflation or no inflation to me taking a loan to buy asset is just another glorified debts. In my very eventful few years of crypto-Currency I have come to understand that it’s very wrong to take a loan to buy any Crypto-currency asset, so inflation aside I believe a loan is a bondage and using it to buy an asset as volatile as crypto-currency is very far foolish, that’s where the start slow and rise steady comes in, Crypto-currency is very much unpredictable and taking loan to enter it can be a bad decision.
It will never be a smart decision if you take loans so you can invest. Though investing is a wise decision, but knowing you borrowed money for that, that makes it very unhealthy for an investor. However, if you have other sources to pay your debt and that they always generate an income, borrowing money may be somehow reasonable. But for a beginner who makes crypto as his first investment, then he should save for its funds first before he decide to take the risk in investing.
Inflation or no inflation to me taking a loan to buy asset is just another glorified debts. In my very eventful few years of crypto-Currency I have come to understand that it’s very wrong to take a loan to buy any Crypto-currency asset, so inflation aside I believe a loan is a bondage and using it to buy an asset as volatile as crypto-currency is very far foolish, that’s where the start slow and rise steady comes in, Crypto-currency is very much unpredictable and taking loan to enter it can be a bad decision.
It will never be a smart decision if you take loans so you can invest. Though investing is a wise decision, but knowing you borrowed money for that, that makes it very unhealthy for an investor. However, if you have other sources to pay your debt and that they always generate an income, borrowing money may be somehow reasonable. But for a beginner who makes crypto as his first investment, then he should save for its funds first before he decide to take the risk in investing. 
Has anyone done the math for some of us who are not as quick grasping this? I still find this a bit too risky. I think I've heard about this before, supposedly you make your money as the inflation go down or something, can't exactly remember. Still, can people really afford to do this at such times like this?
Taking loan is always risk, but if you've got stable earning to pay the interest along with the capital even if the market isn't supportive then it is not a big risk. There are people who doesn't have big spending, and they are affordable to pay the loan premium from their salary or out of the business. For them taking loan to invest on cryptocurrency will be profiting, because they've got the time which will assure with profit/growth.Yeah it is risky. I probably wouldn't even try it unless I know I have some money saved up to pay for a few months of the premium. Especially these days, it's very easy to lose a job or for a business to go under.
I'm still curious why they are saying it's good to take loan during high inflation. Especially since the money you borrowed would have less purchasing power.
Be careful when we take a loan when inflation is high, this is very risky because it can make our debt increase drastically, but the good thing is to use debt for business capital or use it for investments that provide large profits such as cryptocurrencies.
When you are taking a loan in a nation with high inflation, paying the monthly payments could be very difficult on the first month for example, but after a few years it becomes an easy thing. For example, if I sell all of my investments and take a bit of a loan, I would be able to buy a house right now, that is possible, and sell my car too of course, and I would be in so much debt that I wouldn't be able to pay it fairly in the first year, would make bigger debts on credit card to keep it going, I would have to put every single money I make into the loan repayment.However in 4-5 years, it would be nothing, it would be a very tiny amount to pay, and with high enough inflation the house I buy would be 5x size of my debt.
I also don't suggest to do it and that's the actual risk if that's the strategy of other people. I knew wealthy people that have been borrowing money to buy another assets and this is a common style to them and that's making them more wealthy.
But in able for you to do it, you have to make sure that you'll be able to pay the loan + the interest of it and most wealthy people have a lot of sources of income and that's why they're free in doing it. And if you're just an average and minimum wager man, you'll hardly do it.
Borrowing money is only good if you don't rely on a single investment, and that you have lot of sources that generate an income other than crypto. That is why most wealthy investors are capable of this, to expand their investment because they have been doing profits already in their previous investments. Since the more an investor own a lot of investments, the quicker he will become financially stable and secured. But in able for you to do it, you have to make sure that you'll be able to pay the loan + the interest of it and most wealthy people have a lot of sources of income and that's why they're free in doing it. And if you're just an average and minimum wager man, you'll hardly do it.
Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
IMHO, taking loans for such a volatile investment do not guarantee fixed profits, the reason why we should always invest using our extra income. However, if you can manage the risks from doing it, then go, but if you want to avoid troubles in the future, then always invest on the amount you can afford to lose. The fact is, no matter how good an investment is, as long as you don't hold its future, then you can never be at peace thinking that you'll maybe lose in the end, although investment has always its own risks.He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
Based on my experience borrowing money from a bank to invest in Bitcoin in 2018 was one of the worst decisions of my life. I suffered
a huge loss at that time, as you said Bitcoin which has a volatile price can not provide a fixed profit for me to be able to pay my debt installments.
So I highly recommend that we only invest using the extra money we have, so we will not have a problem if the price of Bitcoin does not move
according to our expectations. At least we will not be stressed and burdened if the investment uses money that we can afford to lose. Moreover,
investing in Bitcoin has a very high risk, in my opinion, it is not a good choice to use borrowed money to invest in Bitcoin. I've learned a lot from
my bad experience investing in Bitcoin using borrowed money from banks, which I won't make the same mistake in the future.
In general terms he is right. Taking a loan during high inflation is beneficious for the debtor, as the capital is "worth less" as time passes. The important thing is to invest in something that has a return higher than the mortgage rate and that is the key of this strategy. Bitcoin is too volatile, gold works with inflation but only as long as interest rates do not hike, which will happen.
You need something more or less stable that has a physical base, perhaps Commodities, particularly metals.
You need something more or less stable that has a physical base, perhaps Commodities, particularly metals.
Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
IMHO, taking loans for such a volatile investment do not guarantee fixed profits, the reason why we should always invest using our extra income. However, if you can manage the risks from doing it, then go, but if you want to avoid troubles in the future, then always invest on the amount you can afford to lose. The fact is, no matter how good an investment is, as long as you don't hold its future, then you can never be at peace thinking that you'll maybe lose in the end, although investment has always its own risks. He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose
In this forum i have seen many people who is condemning to borrow and invest. But some times i avoid such statement act. Because when they will realize that to borrow is a support to some one who don't have helper to start up a business of it own. When their is inflation you can get many things cheap and unexpectedly because of many things will cut down the price. And after inflation all those properties you buy with low fees will rise and give you than what you used to buy some of the properties He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose
Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
Big risk is equal to big profit, risk is always there it is normal for us to take the risk to earn a lot of profit, if we don't take the risk then we will remain the same with no progress at all. Sometimes taking risk is good it is better to try than nothing, i believe that the person who are now millionaire in crypto is also a risk taker before, investing, holding, trading, all of this has a risk just always DYOR and don't stop believing for good. He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
Be careful when we take a loan when inflation is high, this is very risky because it can make our debt increase drastically, but the good thing is to use debt for business capital or use it for investments that provide large profits such as cryptocurrencies.
the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
The only downside of the crypto part is that, if the price goes down, or even stays the same, you will not be able to repay it back on time. Because, you take out lets’ say 10k, and you have to pay 500 dollars for 2 years, which will be 12k when you pay it back 2 years later right? Well, that means first month if the price doesn't change you cash it out and have only 9.5k left, so instead of %10 increase meaning 1k profit, it will be 950 profit.Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
So, next month if nothing changes you pay another 500 bucks, and so forth and so forth, eventually becoming very little. Hence, you can't just assume you can pay the loan back with your crypto profits.
Taking loan is not my thing and I dislike it slot. Loan can be very risky especially taking lone from bank or private sectors which has bigger consequences if the borrower is not able to pay the loan at the right time. I can meet my close friends to lend me money but I see no good reasons to go take a loan. Investing is very risky and we should be conscious when getting loan to run a new business that normally takes time to grow before one start making profits.
If I understand inflation, it is when the price of the goods are rising dramatically but I don't think the price of the assets are affected with it therefore spending your money on them can be very beneficial because when you invest you can expect a return but before you do this, you just want to make sure that you are done with your primary expense like buying food stocks, paying bills, and alike. What is good about loaning is that it is said you are immune to tax.
This is why people that already have a money still takes a loan. They aren't worried no matter what happens with their asset, even if it's dipping because they can still be able to pay the loan using the money on their pockets.
I believe no economics work when nature has other plan, last two years of COVID was a life changing experience. This is why people that already have a money still takes a loan. They aren't worried no matter what happens with their asset, even if it's dipping because they can still be able to pay the loan using the money on their pockets.
I realise that no job, no assets nothing can save. you when nature is against you. I think it is good to invest and make some saving when your standard of life are inline. but on the other hand - One should always be prepared for worse.
if you wont be finding way on how you should really be handling out yourself.Making or taking loan shouldnt really be your first choice but rather making it as your last resort if you are really that eager on taking risk.
Getting some loan is never been a good choice for you to do so but this is very situational i would say.
Taking out loans during periods of high inflation is a good idea on paper. If the loan interest rate is below the inflation rate than the loan will be less valuable in the future. But banks are usually aware of the economic outlook and will not give out loans with fixed rates for too long. It really comes down to what the loan details look like. The government also will increase interest rates to fight inflation, which should make loans more expensive again. The only option where taking out a loan seems like a good idea is if the interest is fixed for 5-10 years and the full amount can be repaid at the end. If there is need to refinance after the fixed interest period ended, the loan could become a lot more expensive. I would still advise against taking out loans to invest, there is always the risk of losing money and being heavily in debt.
I would suggest to take loan if there is any dire need. If you are stable and have good standards of living done indulge yourself in unnecessary trouble. There is so much paperwork that you might end up in trouble for no reason.
Taking out loans during periods of high inflation is a good idea on paper. If the loan interest rate is below the inflation rate than the loan will be less valuable in the future. But banks are usually aware of the economic outlook and will not give out loans with fixed rates for too long. It really comes down to what the loan details look like. The government also will increase interest rates to fight inflation, which should make loans more expensive again. The only option where taking out a loan seems like a good idea is if the interest is fixed for 5-10 years and the full amount can be repaid at the end. If there is need to refinance after the fixed interest period ended, the loan could become a lot more expensive. I would still advise against taking out loans to invest, there is always the risk of losing money and being heavily in debt.
Investing is inherently risky, and it gets even riskier when you borrow money to invest in crypto, as cryptocurrencies are considered the most volatile investments. When you don't have enough money to invest then work hard at whatever job as long as it can help you earn enough money to invest rather than borrow. In a high inflation economy, what happens if your investment loses. If you have the calculation and have a plan to deal with the loss of business investment, you can borrow to invest.
When inflation is usually a lot of unexpected things, this makes us have to take loans from banks or financial services, this is certainly difficult to avoid, but the most important thing when we take loans is the ability to pay, do not use taking loans for consumption but use for things productive like business capital.
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