Topic: Today is the story of my investment in Bitcoin - page 7. (Read 2560 times)

This is a nice story OP, which many investors will like to follow your step in the future when you finally make it with that two years of holding. I think, you will definitely make it to pay back your loan and still have more money to continue with your investment, because Bitcoin investment is different from other cryptocurrencies investment which the price can dump today and pump higher tomorrow for those that invested to have something passive to achieve. Bitcoin price will definitely hit higher next year, because this year is a preparation for what investors will experience from bullish market soon.

Yes.. some people do have a problem with the idea of borrowing money in order to invest in bitcoin.  That's why I responded to you in that post in the way that I did - and as an attempt to clarify how loans could be used in such a way that is not as big of a "problem" as some folks, including you MarjorieZimmermanGinger, were generally describing the practice of borrowing to buy bitcoin.


Yes.  I said that it was a problem for OP to be expecting 2x to 5x returns in 2 years even though other people make the same mistake.  And, yes it might happen, but it is a problem to assign too high of a probability to such expectations, as OP seemed to have had been doing.  Just because a lot of people do it does not mean that there should not be some kind of an attempt to clarify the matter, which was what I was doing.


So what?  The reason that he is doing it is a so fucking what?  Do you think that a lot of us are not already familiar with the various theories why the BTC price might go up?  And, yes it might go up, but it might not.  That is part of the clarification that I was attempting to describe, so I am not sure why you are going back to the idea that the BTC price might go up.  That's already known that it might go up, and it is already known that there are cycle theories and all kinds of BTC prediction frameworks, but just because there is a prediction framework, that does NOT guarantee that the BTC price is going to follow such BTC price prediction framework.


Now you are repeating the same thing that I just said.


Well, that's a fair statement/question.  I had made a post on estimating the best case scenario if OP only has to pay interest, and then pay the principle at the end, but there could be other ways that the pay back terms are outlined by the bank.  So far OP has not described that, as far as I can recall not seeing any such description of how the loan is meant to be paid back.  Maybe OP can clarify the terms upon which he is suppose to pay back his loan?
 

Well, OP seems to be gambling that he is not going to lose.  Yeah, so far his the BTC price seems to be going the wrong way, but it is still possible that he could end up profiting from the loan if the BTC price goes up in such a way that covers both his principle and the fees that he is supposed to pay.

As much as possible if you have not taken loan from the bank of your country then I request you not to take high interest loan in this bad condition.  Especially in the next years i.e. 2023 it is not possible to say how the Bitcoin market will be.  Moreover, if you have taken a high interest loan from the bank and invested it in Bitcoin, you have no choice but to wait for the next Bitcoin market upturn.  Moreover, if the market does not rise before your bank pays back the loan with interest, there is a high chance of bankruptcy for you.

Everyone has no problem with borrowing, it's free to do for certain interests, especially the use of the money taken is placed in investing in bitcoin.

Predictions like this are normal things to happen in my opinion, because the OP could have tried to calculate bitcoin's journey when it reached the previous ATH, so that in the next two years bitcoin can provide a large return on the investment it makes. The time accumulation the OP was trying to calculate seemed to follow a four year cycle, so he decided to invest and take the risk of borrowing money from a bank.

However, the problem that will be faced in the following month is how to pay the bank's monthly fees, especially if you do not have other sources of funding, such as cash flow and/or money from other proceeds. Honestly, I would like to know how much the monthly fee must be paid to the bank by the OP?

The biggest problem arose here, there was no other source of reserve funds as he started to run out of money to cover the bank's monthly fees, so when faced with difficult conditions he would decide to sell bitcoins. Thus the investment he made did not get any profit and you could say he failed miserably in implementing this investment pattern.

Depending with each country regulation about Bank interest and seems OP country adopted about 8% until 10% loan interest most heavy trough Bitcoin still going dump and not consistency with profitable earn. Actually, there are not any problem yet when using loan for investing in Bitcoin trough entry when Bitcoin still going dump, but little risk when OP have been investing in not right time and waiting until two years later with his Bitcoin investment not profitable yet.

Better waiting right time for investing in Bitcoin trough Bank loan actually when Bitcoin have going dump, earn profit about 10% until 30% better for selling it and take recovery from your loan and used half for reinvesting again in Bitcoin with your earning profit.

What you have done is a risky thing to do. It was not a matter of you having to buy a single bitcoin. If you could buy bitcoins little by little with your own money over time, that investment would be a good investment. At present you are in a lot of loss from your investment. How long will it take for the market to recover in your position, but you are not even able to analyze it. Right now you have to pay weekly or monthly installments to your bank. So you are in for a tough time right now. Anyway hold on to your investment. And look forward to Bitcoin Halving.

Yes.. take a dumb idea and make it even dumber by employing a "regular trading practice," and losing even more.  That's what degenerate gamblers do.. they take one dumb thing, and then they keep adding dumb things.. and at some point maybe they will get lucky, but the odds become increasingly against any of us the more layers of gambling we add on.

Shitcoiners love to do those kinds of things.. and the vast majority lose money.. so bringing that to bitcoin does not make it better merely because it is on bitcoin or related to bitcoin.

Don't get me wrong.  I am not opposed to trading or even playing swings but it is way better to have calculated and incremental strategies that largely emphasize bitcoin accumulation and holding that does not count on selling in order to accumulate.. but instead largely skewed in favor of buying, accumulating and DCA'ing-related practices.


If you are considering bitcoin as a long term investment rather than some kind of pump and dump, then two years is likely too short of a timespan, and more likely you should be considering 4-10 years or longer, and some form of ongoing DCA rather than merely lump sum investing and/or buying on dip... even though lump sum investing and buying on dip can also be good practices to supplement DCA buying.

No matter what there are no guarantees either.. so each of us should be attempting to account for the fact that there are no guarantees in bitcoin, even though it seems to have been, to be and to continue to be amongst the best (if not the best) of places in which we can allocate value for the longer term of 4-10 years or longer.


I personally don't have any problem with a loan and to take chances that front-loading the investment might pay off better than buying incrementally.  Each of us is free to exercise those kinds of potentially reasonable gambles - even with long term investment money.

I think that the area in which OP went wrong was that it appears that he was calculating that the BTC price will go up during the next two years, and he seems to calculate that into his plan as if it were guaranteed, and even if the odds might be greater than 50% that the BTC price will go up in the next two years, that seems to be allowing for too many loose ends in regards to how to play a 8% to 10% per year interest rate that guarantees a certain level that he has to cover in the loan just to pay the servicing of it and how much the loan is costing him.  He also seems to NOT have other funding sources, such as a cashflow and/or other monies to assure that he does not have to sell his bitcoin.. so it is weird that his plan almost guarantees that he "has to" sell some of his bitcoin, even if the BTC price goes up within his anticipated 2x to 5x range.... and I suppose nothing wrong with servicing the loan by selling some BTC if the BTC has gone up 2x to 5X, that would end up being more profitable than if he had not taken out the loan.. but it still seems like an unreasonable gamble if all of the possible outcomes are considered rather than just assigning value to various upside scenarios while either failing/refusing to account for downside possibilities or giving really high discount calculations to the possible downside scenarios.. like assigning the downside values lower levels of probability than they actually deserve.

Even after that 2-3 years, profit is not guaranteed. So I don't see any rational behind taking loans to buy Bitcoin as OP did. I will never do that while in my right senses. It is understandable the OP just want to fulfill his dream of owning a btc and he did though with much risk associated. I hope he'll not regret later.

Sometimes does post some people use it to testify of their own story or what they experience into cryptocurrency so I will advise you not to develop hate to anyone posting method or posting style because many of us use what they pass through and what they witness to correct or make a post for we to read and see

Yep majority of us here thinks it's a very risky move even if OP calculated the return of his investment after few years. Even me don't recommend to loan money out for the reason to invest, trade or gamble. Crypto is a volatile assets and it's a very big no for me to borrow and buy even if it is bitcoin. There are many possible things might happen in crypto and it's possible that the long awaited bull market we expect might not be in our face 2-3 years from now. It's a bold risky move and let's see how his investment will go in the future.

Relax, don't get so riled up because there are some certain things that we cannot control. I understand what you feel but we can't do anything about it as the OP chose to take that path where it's so risky. Let him do some mistakes as that is his own way to learn things, he chose to learn it expensively though.

While it's good to own 1BTC but we don't need to be hasty about it especially if we cannot really afford owning one. OP might have forgot that owning a fraction of it still counts and it's still profitable considering that we're just investing what we can afford and it's just a spare that won't be a liability in the future. I know that bitcoin's future is bring but owning one by loaning? That's just certainly a bad wild idea to begin with.

Everyone has a different investment method, he is also a legend on the forum, which means he knows what risk he will take when deciding to take a bank loan to invest. I wouldn't say he made a mistake because we're not him, we weren't in his situation so we wouldn't know what he was thinking. But when it comes to the monthly interest he has to pay, I guess he struggled because of the sudden increase in inflation this year. It will be a difficult time for him.

Make up your mind. If you're confident that Bitcoin won't let you down, then why are you still worried? It doesn't matter if you own a single coin, many, or fractions of, you're protecting yourself against longterm inflation we know for sure affects fiat, and that Bitcoin so far shows it can overcome.

Forget the downs and ups, remember the cycle after cycle performance.

Two years, too short... You need to start thinking minimum 4-5 years (one halving).

It worries me when all your assets are not enough to own a bitcoin. Although investing in bitcoin will not let you down, but the plan can't keep up with the changes. You can still save more money in other areas within two years A rainy day.

This is a very risky investment method, but I hope you can have a backup plan. At present, you have not purchased a bitcoin asset. If the price of bitcoin has not risen to the ideal price after two years, how do you repay it?

I see the expression of the idea that you provide is also very good because I personally have never made a loan to buy Bitcoin or other cryptocurrencies. Because I realize that this kind of thing is very bad when it comes to cryptocurrencies.

So it is very true as you say that it is better to buy Bitcoin half or as much as we can with the money we have without having to make loans to other parties for this. After all, everyone who buys Bitcoin is looking for profits accompanied by sincerity in the event of a loss, not adding to the burden through loans.

There are many ways to own 1 bitcoin, it is not necessary to risk fulfilling your dream in such a hurry. If you can't buy 1 bitcoin at a time, you can also accumulate weekly, monthly, and we have the advantage of being in the bear season, so accumulating to get 1 bitcoin is not too difficult to achieve. I think OP is having a big problem because his original plan was to have no inflation, but now inflation is high, and he has to pay more interest than expected. It is an uncomfortable situation to get the dream quickly.

Seems excited leaving in your country based on 5% interest when loan money in the bank, currently in my country have to pay more higher interest, I am remember with my neighbor get loan from the bank have to pay more than 20% interest per two years.

I think not good financial advice when investing in Bitcoin from Bank loan depending we need paying every months and several percentage of interest. Faced difficult with capital used for investing in Bitcoin make us have blame and use anything possible not only from Bank loan but also I faced reality in my country many people getting loan from illegal side. They have to pay highest interest loan and ever I read they history have paying more than 50% loan interest with loan one year only.

Yes, it really is a choice.
But not by pushing myself, I was seen taking money in the bank in 2016, it literally imprisoned me for a monthly fee. OP takes a big risk when he doesn't have a backup plan for monthly fees to be paid to the bank, because the bearish season is likely to last for a long time, so the investment OP makes will have an impact on withdrawing money. We hope the OP can sort it out and have a backup plan going forward in the current month, so it doesn't get into trouble with the bank and says bitcoin is not a viable investment.

Because I believe that when bitcoin experiences a severe correction and demands for bank monthly fees cannot be resolved, the OP will act beyond predictions and it is in this condition that many people say bitcoin is unable to solve the problem, even though he did something without a mature forecast and strategy.

In theory he made the right investment, by placing money in bitcoin and was very right to enter the market when bitcoin conditions were in a bear market, which became a problem for the decision to take money at the bank. Because it will be difficult to get a return on the investment he made now, when the bear market has not shown any improvement towards recovery anytime soon.

OP definitely has a backup method for the problem of borrowing money at the bank, because it may have been considered quite carefully before everything was done.

Owning 1BTC have turned to be a big thing. In the past it looked like anyone can afford to have 1BTC, and now things have changed as the market have got widened as well as grown high in value. Op had risked, looking the market situation it is good he had made the entry at the right time. He could try to make some more earning through the regular trading practice. The interest rates on borrowed money is high, but it gives the satisfaction of making his dream come true.