So, in retrospect, was it a good decision to pay off all debt with BTC money? Paying off debt = cashing out = selling your precious coins. So
if you have just hedl and went on with your monthly payments wouldn't it have been more profitable?P.S. Happy BD!
I don't know what the he will answer but from a purely accounting point of view that would be like borrowing money to buy Bitcoin and that carries risk.
I opened a thread on the subject yesterday and all the answers are contrary to borrowing money against your Bitcoin.
I glanced at that thread (and put it on my watchlist - surely not a bad topic), Poker Player, and I am considering providing a response there.. Maybe I will link this response?
As you may know, I am NOT a very BIG fan of some of the recent hype about putting your bitcoin at risk with third parties and various recent Defi products and some of the baloney that comes with some of the pushing of various products.
But there are a whole hell of a lot of ways to leverage debt to your advantage, so in that regard, debt is not bad in and of itself - especially if you know how to leverage it to your advantage.
Let's get out of all or nothing thinking because you might not just take out a loan (or not pay back a loan) and completely put that in bitcoin - even though some people have done those kinds of things with results in both directions.. Surely some of the major considerations that anyone should make when using debt includes considering their cashflow abilities to service the debt, and how they are planning to use some or all of the value that they get from the debt. Sure, the debt can also be used to bolster cashflow reserves, too. Some of the worst kinds of debts relate to buying consumption goods and various depreciating products, and better kinds of debts relate to investing, business, self, and ways that have decent chances of appreciating (or at least holding) value.
Sure, bitcoin could go either way, so in that regard, it could be good to increase your bitcoins from 10 to 12 by taking out a $100k loan that might have a 5 year term (or not paying some of your existing loans), but surely, there should be considerations of cashflow during that time and ability to service such debts whether bitcoins go up or down during such time - so you would not necessarily rely on bitcoins appreciating in value, even though you hope (or theorize) that they do.