Warning from ETH founder about taking loans.

tycsols

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Quote from: ultrloa on December 17, 2020, 07:19:30 AM

I'm sure that many people are been hype for the current market situations where FOMO is in the minds of people and hyping is spreading every where.

This article released is really a big help for those people who think about taking loans just to have a capital to buy bitcoins without realizing the danger about it.

https://www.coindesk.com/buterin-warns-followers-not-to-take-out-personal-loans-to-buy-crypto

And we need to take many considerations before deciding to do it since if we don't have money to pay if we lose our borrowed money then this could create a huge trouble and might this is a big reason for certain individual to get broke.

So think more about this and make a good decision since it's really risky to take loans since we are already at lose since it has an interest that we need to pay as well it's risky if we don't know on what you are doing.

What are your other personal inputs from this? Kindly share your opinion.

This would definitely be an insane or suicidal decision if someone would take loans or sell somethingbof basic necessaty to buy crypto in hopes of multifold gains in short period of time. Inky do it if you can afford to be homeless or lose everything out of greed, that is why i would advice you to put only the savings in crypto that you can easily afford.

Shubh7668

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If someone takes loan and failed to pay it than,not only he but his family also suffer, specially taking loan for a crypto which is very volatile is madness

Psynthax

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It should always be like that, taking loan just to buy crypto is insanity, we don't know whats gonna happen in the future yet taking loan and that means double the risk.
Though, honestly vitalik advice will do nothing because people just don't care and some people get blinded by greediness.

bitcon

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Quote from: ?? on ??

Investing loan money on cryptocurrency or any other speculative assets is not a good idea, no matter how good the current market is performing. Only invest money from your extra savings not even from the salary which maybe needed for your next month expenses, make sure that you no need any money from your investment at least for 2 years to make something from the invested capital.

Loans to buy cryptocurrency are the biggest risk! How can you calculate all the chances of profit without even having the start-up capital to buy a small part of it? It is better to buy a little, save up for the initial investment. Than then get into a financial hole and not be able to repay the debt.

jacafbiz

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Do not invest what you can't afford to lose into Crypto, though the reward is high and so is the risk, a lot is being said of 2021 and but we need to caution ourselves, a lot of people lost money in 2018 into Crypto and have never recovered from the lose

Cling18

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Entering the market during this time is a risky decision especially when we're just taking loans to get funds to invest or trade. It's better to save and use our own money than borrowing without even an assurance if we could return it or not since cryptocurrency is also volatile. Allocating enough savings for crypto investing is the wisest thing that we could do.

Alert31

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That's right! Taking loans to buy crypto is not a good idea ever. Loans have interest and your investment in crypto is too risky which is you didn't know if you are going to take profit or loses. That's why always said that "Only invest or buy crypto the amount that you can afford to lose". What if you take out loans then you lose it, then you don't have other job, how you can pay off your debts/loans? It will just give you headaches and problems.

FaucetKING

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Taking a loan isn't the right move nowadays, i might say that people could take a loan for buying a hause, a car, marrying their girl friend or taking their children to a good school. That would be nice if the loan isn't that big or if there's a good shelter to buy if you find a cool opportunity. Taking a loan to buy something virtual using a big sum of money is risky, just imagine if you have an undiscovered malware rigged in your pc and you don't know about it? Imagine if you pick a wrong choice, just imagine these risks and imagine yourself in front of your pc losing 60% of your debt, is that cool?

Furious 7

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Quote from: Taskford on December 19, 2020, 06:08:02 AM

We can't deny that there are so many people got tempted to take a loan now especially the market is doing a amazing performance recently and many want to join just to gain money from it.

And borrowing is not really a good option here since there are so many consequences that we will possibly faced and might it will give us a big problem if we miss handle the borrowed funds for doing a mistake on our trades.

That's right, man, so many are tempted by the movement of bitcoin, maybe for them it is very promising to get rich, but sometimes they don't think about the risks that will be faced, that's what many people are afraid we can turn into big losses if not right.

Of course I will use the free one and not burden my family's finances, it can also be dangerous, but every time I get paid I always set aside a little at a time for crypto or other benefits so it's not too heavy, because borrowing is only a little temptation because of the high price. really not recommended.

CryptocurencyKing

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Times are hard people and do, the people seems to go harder by taking drastic decisions such as stated in Buterin's tweet on getting loans to invest in crypto. It's not surprising how people tend to invest when bitcoin and other cryptos is surging but what they always fail to realize is the reason for this surge.

Looking at the current price of Bitcoin, it's evident that it has doubled in price as compared to it's price in the last 6 months, this has led investors to see more potential surge in less time. Like contained in Buterin's tweet, the investor who took a loan of $47k+ to pay back $57k+ in 2026 might seem like a profitable investment, looking at the years ahead and the time it took bitcoin to double in price but then, investors also need to understand that, the surges in crypto space is not based on our thoughts or imaginations.
If the necessary constraints aren't in place, you would find a stable and ranging crypto market hence, the investor ends up in depths. We need to be wise on decision taking and not to land ourselves in trouble. It's not an entirely unwise decision but then, there should be a means of paying back loans other than blindly believing in growth of cryptos.

KaratX

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People tend to have interest in Crypto only when the price is surging but what they failed to understand is the perfect time to get into crypto is when the market is in bad shape, some buy their bitcoin for 3700$ to 4000$ in March of this year, they are the smartest and the most patience too. Some went ahead to take loans for crypto investments in 2017 thinking that Bitcoin will grow over 20,000$, this put them in a very bad shape, loans is never good for crypto

Taskford

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Quote from: AakZaki on December 19, 2020, 05:55:35 AM

For those who make loans to buy crypto it is very risky. Crypto can make you rich but vice versa. You need techniques that are learned and mastered to minimize losses. Borrowing for crypto I don't like it, and I advise you not to do it for you newbies to crypto. When viewed easily or the story may look easy but it is difficult. Use your freest money to buy crypto or even I think there are some people who play the faucet (myself too) to collect crypto then we use it for trading or something else. This method is better because we have no responsibility to return it if our money runs out.

We can't deny that there are so many people got tempted to take a loan now especially the market is doing a amazing performance recently and many want to join just to gain money from it.

And borrowing is not really a good option here since there are so many consequences that we will possibly faced and might it will give us a big problem if we miss handle the borrowed funds for doing a mistake on our trades.

AakZaki

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For those who make loans to buy crypto it is very risky. Crypto can make you rich but vice versa. You need techniques that are learned and mastered to minimize losses. Borrowing for crypto I don't like it, and I advise you not to do it for you newbies to crypto. When viewed easily or the story may look easy but it is difficult. Use your freest money to buy crypto or even I think there are some people who play the faucet (myself too) to collect crypto then we use it for trading or something else. This method is better because we have no responsibility to return it if our money runs out.

abdulodoi

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Someone posted here few days ago about being so proud of taking a personal loan to buy bitcoin and made profits, I'm hoping he/she reads this and be careful next time. Though you may win when gambling but the chances of losing is also high when gambling with money. Crypto is way too volatile to take a loan for, the danger of loss involved is way too high. Rather to invest a little at a time or as much as you can afford to lose.

$crypto$

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Quote from: The Cryptovator on December 17, 2020, 11:50:32 AM

I can't imagine borrowing money to buy cryptocurrency. Usually, I don't like to take a loan without emergency circumstances, so no question about cryptocurrency. Current cryptocurrency markets are quite volatile, even I can't dare to trade USDT/BTC at the moment. Because we don't know what would happen, the bull run would continue like this or it would dump as well. If in case someone buys bitcoin by taking loans and crypto markets dump suddenly then you may become a beggar and wouldn't return the loan. So, it's better to take such as high risk.

For me it is terrible to borrow just to invest in crypto whereas this volatile market is very risky for those who borrow only for capital that has no interest except for emergencies.
For me this will be thought of twice because a loan must be returned in full along with the interest, so in uncertain trade or investment, sometimes profit sometimes loss is what makes me reflect that many people defend to borrow when the situation is now, this is not now The game is still a long way off so think more carefully than borrowing just out of greed.

ultrloa

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Quote from: RapTarX on December 17, 2020, 12:24:24 PM

It was a news yesterday or the day previous posted in his twitter. And yeah, I have to agree with this. As crypto is way more volatile than any other investment, I guess no one should ever take loan for investment in crypto. Even fund out of your pocket should be invested carefully as high volatility may ruin your fund as after the 2018 ATH, a lot of people lost their 90% or even more value of their portolio.

It's dangerous act and I'm truly glad that Vitalik give some statement about this since it shows that his not biased to his coin and his concern for the welfare of people who's starting up on this industry. We need to think smart since investment in cryptocurrency is not really easy the market is so mysterious and best to invest our spare money while we are new or old to avoid any financial danger.

I agree that we need a financial literacy but sadly this thing is not been teach in schools especially on 3rd world country. That's why we need to DYOR in terms of investments.

JeromeTash

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Those who bought Bitcoin late 2017 very well know the drill when it comes to Bitcoin/crypto prices and the price volatility in them. I know people who lost their savings buying bitcoin at it's ATH. I know a married couple that even divorced because of the losses.

Trading crypto is similar to gambling in away that much as there is a chance to make some quick profits, there is also a high probability of making huge losses, and just like gambling, the same rules apply. The most notable one is only trade what you can afford to lose. By the time someone acquires a loan, I don't think they can afford to lose it.

Upgrade00

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There seems to have been so much hype around Bitcoin that most people have began to forget the rules of investing (or have grown so much faith in the potentials of Bitcoin), which includes, only investing amounts you can afford to lose.

Bitcoin has proven over the years to be a reliable investment, and considering the details of the loan Vitalek highlighted, there is a huge chance the individual would profit, if we're following the direction of the market and the low risk of the bet.

Update: And in fact they have indeed already passed the break even point, as was shared in a recent tweet.
Of course the fact that it worked out for him doesn't make it investment advise. Always do your own research.

harizen

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Back in 2017 when BTC achieved its previous ATH, there are lots of people that began to think that crypto is a quick money scheme. Because of that mindset, others even sold some of their belongings or take loans just to make sure they will able to join the uptrend.

And what happens next is history.

It's not totally wrong being in a FOMO state as it's usual but not to the point that someone will risk taking loans and rely only on volatility to expect a good return in the future. Instead of profit, the worst-case scenario, which is being pounded by a loan + interest, is more possible to happen.

hugeblack

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Unfortunately, the lack of financial literacy is what makes people rush easily and do not know when an excellent investment opportunity to enter or exit the market.
The market is now witnessing a peak of recovery and therefore it is the most dangerous time to enter the market and even achieving gains may not be so easy that a person can borrow for it. The excellent opportunity was when the pandemic was announced and prices fell below $ 5,000.

Also, following the advice of famous people may not be a good thing in the long run. Build your strategy.

Topic: Warning from ETH founder about taking loans. (Read 345 times)