Topic: What do you think about borrowing against your bitcoin? (Read 539 times)

Meehn I don’t think I like that kind of idea. I believe that most of us here are business people at least, so why not maybe take profit from the Bitcoin and use it to finance and boost your business to a higher level and then when you sell and make enough profit from your main business, you can then invest more money if the price of Bitcoin has reduced by then.

I think putting yourself in debt will be very bad, although I do know it’s possible that the price of Bitcoin can go up, but what if it doesn’t go up and it happens to be at the time you’re meant to pay the debt back? You will then be in a really tight position which wouldn’t be good for you. Well, it’s still left for you to decide, and moreover this is why you’re being told to invest what you can afford to risk, that way you wouldn’t have things like this to worry about, and will only withdraw whenever you want to, even if it’s in five years.

Let’s think, the person who would hypothetically borrow you BTC at price of 50 000 will want not 50 000 but the whole BTC back by the market price together with some per cents for instance in five years. So in five years BTC can cost one million as well as 20 000 and the person who borrowed BTC would have to give it back with per cents (not money but BTC and per cents). If he/she is a good trader than it might work but just hodling can't help hear.

I prefer not to borrow atall. I would instead invest only a part of my whole savings  into Bitcoin rather than everything, then use the other parts to finance other important things when I need to . Or I will simply just focus on accumulating small bit of Bitcoin regularly.

Borrowing can be addictive. And imagine getting addicted to it but not using the borrowed money well and being profitable.

The idea would be to borrow using the Bitcoin as collateral, and refinance as the price continues to rise. That way you don't sell your Bitcoin and you don't pay taxes, income tax or capital gains.It should be done with a low debt ratio, which will allow you to weather a bear market storm for a couple of years.

I do not see it clearly, I understand that in general the best you can do is to avoid debt and increase your net worth, and you can only sell partially when the price reaches certain milestones. For example, you sell 25% when the price reaches $100k, another 25% when it reaches $250k, and so on.

I don't like the idea they propose either, because if it were to become generalized, bitcoin would be encouraging the very thing it proposes to flee from: bitcoin is an alternative to money as debt and encouraging massive indebtedness by taking bitcoin as collateral seems paradoxical, to say the least.

I completely agree with all users who spoke negatively about a loan for investing in Bitcoin, but at the same time, if we are talking about an experienced investor who has sufficient knowledge, it may well be profitable to invest the money received from the loan. Almost the end of 2020, as well as the beginning of 2021, provided quite extensive opportunities for profitable investments, including even such cryptocurrencies that showed lightning-fast, but short-term jumps in price, such as AME, DOT, Dogecoin....

I completely agree with all users who spoke negatively about a loan for investing in Bitcoin, but at the same time, if we are talking about an experienced investor who has sufficient knowledge, it may well be profitable to invest the money received from the loan. Almost the end of 2020, as well as the beginning of 2021, provided quite extensive opportunities for profitable investments, including even such cryptocurrencies that showed lightning-fast, but short-term jumps in price, such as AME, DOT, Dogecoin....

I do not like debt.
I think a lot of the financial problems the world is dragging down come in large part from debt. The over-indebtedness of people, of states, of companies. Money is created as debt. At first it was mortgages and personal loans, then credit cards, but today you can finance practically everything.
I've been hearing the idea that selling your Bitcoin to take (some) profits is stupid. That it would be better to borrow against it and let it keep growing. I heard this from Saylor a Max Keiser. If you really believe that Bitcoin is going to keep growing, that it's going to reach $1M or more, why are you going to sell it at $50k?
The idea would be to borrow using the Bitcoin as collateral, and refinance as the price continues to rise. That way you don't sell your Bitcoin and you don't pay taxes, income tax or capital gains.It should be done with a low debt ratio, which will allow you to weather a bear market storm for a couple of years.
I do not see it clearly, I understand that in general the best you can do is to avoid debt and increase your net worth, and you can only sell partially when the price reaches certain milestones. For example, you sell 25% when the price reaches $100k, another 25% when it reaches $250k, and so on.
I don't like the idea they propose either, because if it were to become generalized, bitcoin would be encouraging the very thing it proposes to flee from: bitcoin is an alternative to money as debt and encouraging massive indebtedness by taking bitcoin as collateral seems paradoxical, to say the least.
I'd like to know what you think about it.

Agree to the point, indeed its highly risky against the bitcoin due to its volatility and you never know just like the prices from 57k fallen till 46 and what if it continues to fall. So, the one who has taken the loan will just be unable to repay it. It’s always better to earn first and then only start with the capital you have it so that you do not have any lenders as such else that is different stress.

taking a loan to jumpstart your cryptocurrency journey is something that I am actively against and is advising to avoid, We may be very hopeful about bitcoin reaching the moon or solar system but we are also fully aware that there is that chance where we could lose everything in a snap, and we don't want that to happen to you, so only invest what money you can afford.

As much as possible if you really wanted something that you still cannot afford to have as of the moment, you better not to include the idea of borrowing money no matter what the reason is for the fact that you still have lots of time until you can afford having such thing. The point is that if you have been familiar into the concept of always borrowing money is that you will not progress that easy because you are being dependent into someone or something that can let you borrow money just to afford what you wanted to have. In terms of Bitcoin, we all do know how unstable or volatile price of Bitcoin is so why do make it an idea borrowing money and using it as a collateral when you are still not sure of how the price will be keep going? As much as possible avoid getting into debt and do only limit yourself into things you can afford.