Taking loan during high inflation? - page 9.

Fatunad

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Quote from: blockman on May 14, 2022, 05:19:41 PM

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.

But there are people who do have that kind of mindset on which they do really believe in that taking risk is really worth if you are really that having those goals on having a good future but since we know
that not all things we've been engaging through would end up to be on positive then you should have back up plans on the time that things doesnt really come on what you are expecting.
Taking loan is never been recommendable specially if you are having some problems in terms of other source of income but if you do have lots of sources
then it wont really be an issue at all.

ajochems

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At first,it demands on the capacity of you.If you are going to take a loan from friends,kindly take a loan of 5000$ or above.Because you need to keep the bet on most trusted coin,which is bitcoin and Ethereum.Keep the first bet of 1.5K$ on both bitcoin and Eth.When the pump occur,their will be huge profit.Then keep the remaining 2k dollars for best 8 coin.

BIT-BENDER

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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.

blockman

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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.

Charles-Tim

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Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

But the question is what if you do not own enough money for investing? can you take a loan and invest?

Only what is advisable is to borrow money for business. Some people can take the risk and borrow to invest in bitcoin, if they study the market very well, they can be lucky, but, yet, not a good advice.

Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

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.

Especially, this would be a good idea in developing and underdeveloped countries where high inflation persists (but fiat is inflationary generally), but not a good idea. It would rather have been better using loan for business.

Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

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?

Yes, not good at all, what if the investment plan go wrongly, that will be a big problem for the person.

Have you heard about die borrow die strategy before. You can read about it.

About the borrow aspect of it, rich people prefer not to sell their asset because of the high tax, because of this, they borrow in which the tax would be reduced if compared to selling of property or asset. Let me use bitcoin being an asset as an example. If I have certain worth of bitcoin, but because if I sell it, much money would be paid to the government in tax if compared to borrowing of fiat, I will rather borrow. First, because fiat is inflationary. Second, because tax that would be paid in borrowing fiat will be reduced if compared to sellimg of bitcoin holding directly. Because of this, if someone borrow, it is not a bad idea at all.

Leviathan.007

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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?

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