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.
My personal motto, "if you can't buy four of those, then you can't afford it", which of course does not apply to investing, a simple mantra to help me control my spending, and to keep me from borrowing money. 
Topic: What do you think about borrowing against your bitcoin? - page 2. (Read 539 times)
Debt is truly bad indeed, personally I am in debt right now and I can't emphasize how awful it is to wake up everyday knowing that anytime soon your bank could call you asking for the money. Which also became my driving force to invest in bitcoin. Now regarding your question, you have to understand that people have their needs too, and for sure bitcoin is bound to reach perhaps even $1 million, but that's going to take a very long time, and everyone's gotta eat today, not next decade. And of course, we wouldn't advise borrowing money to invest in bitcoin, as hopeful we are with bitcoin's mooning, we are also aware that all of it can be gone in a snap of a finger.
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.
by any means, it is not advisable to borrow money just to invest in bitcoin. though the value of btc in the market is very promising, however, that should not be the reason to borrow from someone and hoping that it will increase afterwards. and also, you dont know what will be the value of your btc when you need to cash out and pay for your loan.
wont advise this move especially for those who are just starting to know the crypto market. if you want your mind to be at peace, dont borrow money for a very volatile and risky investment.
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.
You can borrow money to buy bitcoin and not selling your bitcoin because you believe that the price will reach more than $100k. But you must remember that the price will not increase, but the price will fluctuating before the price can really hit $100k or more. So I think you should think twice before deciding because before the price can increase more than $100k, you need to pay the debt every month.
It is better to use some part of your bitcoin to sell at a high price and buy it back again at a low price. Using that method, you can have a chance to have more money as a profit, and you can also have an opportunity to have more bitcoin as your investment.
It is better to use some part of your bitcoin to sell at a high price and buy it back again at a low price. Using that method, you can have a chance to have more money as a profit, and you can also have an opportunity to have more bitcoin as your investment.
Well Bitcoin has become a hard asset, so I can't see any problems with using it as a security. The real question is - should you be borrowing money? Borrowing to service living costs or luxuries is a bad idea. Borrowing to purchase an income producing asset may be a good idea if you are sure that the project is viable.
I'd never borrow money for stupid things but the moment I'd need some fresh cash I'd like to use my bitcoin as a collateral. What scares the shit out of me is that bitcoin's volatility could definitely kill the LTV loan ratio anytime as we all know the wild price swings bitcoin is able to do.Today, that's what prevents me to leverage my bitcoin to borrow some money.
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.
Who is going to lend you fiat while taking bitcoin as a collateral, if you think that it is the best option then you can create your own business but tell me how you are going to profit in the long term and how you will sustain the business with a high volatile asset like bitcoin. Suppose you keep gold as collateral you get around 67% to 70% of the valuation depending on the financial institute, how much percentage do you think you can risk with bitcoin.
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.
If you are looking for profits and you hate debt and if you have the assets in bitcoin and you are in emergency why take a loan when you can sell the coins.Suppose you kept the bitcoin you were holding as loan and what happens the market rallies during the period and you were not able to return the loan in time, what do you think will be your benefit as anyone willing to give out loan keeping bitcoin as collateral will not be a fool as they know the market will go in either directions, do you think you can benefit from the rally or you will be forced to share the benefit with the institute as well.
I feel similar about debt, it's a bad idea. Whenever we can avoid debt we should do so. Sure there might be same opportunities where is actually good to go into debt if you can save taxes like it. In such cases however I would recommend to have the borrowed money available to repay the loans at any time. Borrowing money that you need buy might lose is a very risky business and I wouldn't do it. In the end it all depends if you can live with high risks or not. Being unable to sleep because of it would be devastating.
Well Bitcoin has become a hard asset, so I can't see any problems with using it as a security. The real question is - should you be borrowing money? Borrowing to service living costs or luxuries is a bad idea. Borrowing to purchase an income producing asset may be a good idea if you are sure that the project is viable.
I do not like borrowing debt with collateral like that, sure collateral could be a "thing" but it should not be money. In my country for example, if you show 1000 dollars as your money, you could get 2000 dollars in debt, but I do not see that as making sense and in crypto that is not that way neither because you may not get 2x of what you put in as collateral. But, showing your house? Your car? Your things could be a collateral and that would be fine by me.
Assets and money are different and I think crypto is money and not asset, there is a reason why it is called "crypto currency" and crypto should be approached like that.
I believe we should probably do the reverse, get regular fiat loan from regular banks and use that for crypto instead, that would be being in debt as well but it would also be something that would help us a lot as well if crypto goes up like it does all the time.
Assets and money are different and I think crypto is money and not asset, there is a reason why it is called "crypto currency" and crypto should be approached like that.
I believe we should probably do the reverse, get regular fiat loan from regular banks and use that for crypto instead, that would be being in debt as well but it would also be something that would help us a lot as well if crypto goes up like it does all the time.
If debt is made to build a business then it doesn't matter as long as debt is not for consumption purposes.
But the idea of making BTC as collateral to get a loan is not a good idea, it would be better to sell the BTC we have to finance our needs, especially if it's to start a business, BTC itself is an asset, so why add debt if we still have assets that can be utilized.
But the idea of making BTC as collateral to get a loan is not a good idea, it would be better to sell the BTC we have to finance our needs, especially if it's to start a business, BTC itself is an asset, so why add debt if we still have assets that can be utilized.
Stick to the idea of "invest what you can afford." Although BTC is promising, you'll be taking a big risk if you will borrow money to invest on it, or even spend all your savings to expect a huge income after a few years. I don't like the idea of borrowing money if it's not an emergency. Earn, save and invest what you can, don't be greedy and don't put your self in a big risk just to take chance to earn big.
This idea will surely bring regrets in the future. Getting fiat and having Bitcoin as collateral will never be a good idea because we all know the capability of Bitcoin to strike higher in the future. As for me, Bitcoin is best for investment. If you still have other collateral to offer then choose it over Bitcoin. Be wise so you'll gain a better profit than having regrets when Bitcoin reaches the best price.
This is like gambling where you are making yourself in a bad position or place, because when you take a debt and invest it in bitcoin, it is like you are putting yourself into a circus.
It is much better to work first then save then invest so that you are secured and you are confident to use your money in a bitcoin investment.
I don't guarantee you to use borrowed money because it will just haunt you when you lose it.
It is much better to work first then save then invest so that you are secured and you are confident to use your money in a bitcoin investment.
I don't guarantee you to use borrowed money because it will just haunt you when you lose it.
I think that debt is the source of all financial problems, so I avoid debt. If we need money and are looking for a way to make our Bitcoin become
collateral that's a stupid idea. Why make something volatile become collateral, that's a very big risk. Then if we already know Bitcoin can provide
profit in the long term, why let Bitcoin be used as collateral and make other people control our Bitcoin. I think we can live without needing to
borrow money, most of the people borrow money because of prestige and speculation.
^ Definitely right, your idea is good and convincible and probably that is the reason I will seek a loan when I most needed it but if not, I will not take a loan and have debt as long as I can find ways to provide my financial problem. BTC is a very volatile thing, you don't know when it comes to repayment day BTC will drop the value and you cant able recover the interest that you have borrowed, which is very risky to your side. As long as you can avoid a debt find a better solution and BTC is not good for collateral unless if that is a real state or even a car or your house loan much better. collateral that's a stupid idea. Why make something volatile become collateral, that's a very big risk. Then if we already know Bitcoin can provide
profit in the long term, why let Bitcoin be used as collateral and make other people control our Bitcoin. I think we can live without needing to
borrow money, most of the people borrow money because of prestige and speculation.
Giving bitcoin as collateral to get the fiat money doesn't look like a great idea, you are expecting it to grow meanwhile you are paying your interest but what if the price of BTC gets crashed? Lender will ask for more BTC for sure or they will never accept it as valid collateral to get finance. First of all understand that if you are going to pay interest rates then it will be too hard to see any returns so saving money is the only smart choice whether it is fiat or bitcoin.
Yes, that's the only problem although I overall like the idea because the price has to go up technically speaking since the demand is growing beyond expectation and although there are swings up and down but overall the price is only rising. I like the idea but only so much that I won't implement myself but I don't mind others trying.I would rather sell some part of bitcoins I hold and pay off my loans, then just focus on earning while locking my bitcoins in a safe wallet and don't considering selling or even trading them for years.
I think that debt is the source of all financial problems, so I avoid debt. If we need money and are looking for a way to make our Bitcoin become
collateral that's a stupid idea. Why make something volatile become collateral, that's a very big risk. Then if we already know Bitcoin can provide
profit in the long term, why let Bitcoin be used as collateral and make other people control our Bitcoin. I think we can live without needing to
borrow money, most of the people borrow money because of prestige and speculation.
collateral that's a stupid idea. Why make something volatile become collateral, that's a very big risk. Then if we already know Bitcoin can provide
profit in the long term, why let Bitcoin be used as collateral and make other people control our Bitcoin. I think we can live without needing to
borrow money, most of the people borrow money because of prestige and speculation.
It almost impossible to earn on crypto loans
Still depend on your self if you would like to risk at all some of the members would like to ask for bitcoin just for a different reason also this is the reason why we have the collateral to make sure that the borrower will give it back also some of those people who didn't pay will now tag as a defaulted loan. Also, it's all about risk-taking a loan but still, if you don't really need to borrow money just for nothing there is no reason to ask for a loan. On our local we have an amount in PHP even its not a bitcoin still the borrower doesn't need to lose anything because of the volatility.
Borrowing is not really bad because at a point borrowing really solve some certain issues now, borrowing above your income can be seen as a wrong altitudes from my views but I don't really know for others because here in community their is a particular board for lending which involves cryptocurrency especially bitcoin, so basically you borrow and be paying gradually with a Bitcoin, but that should not be above you monthly or weekly Bitcoin achieved.
Really? You can say that to the people that are drowning in debt and can't pay. Borrowing anything means that you will do anything to pay it back and there are a lot of things someone can do because they want to pay back what they borrowed. I do agree that you have a certain point where you are allowed to borrow but don't you think that it will be practiced in real scenario, most people who are in debt typically spiral out of control and borrow more money than they can pay back.The thing I understand through borrowing is that, it really help for quick solving problems, and a process whereby we are I needs of finance and the money is not available the problem will remain, is Better to borrow and solve issues than to allow problem to lead us to early grave.
I would definitely not do it just to buy bitcoin. Its price is very volatile like the market can't go well after you bought it then you can be in dept in just a few months. What will you do to pay the money you borrowed if that happens, the bitcoin's value you bought won't be enough to pay it. I would prefer to buy an amount that only I can afford even if it's just a small amount. Some of us are just really hyped now and FOMOing to buy bitcoin because of its rapid increase, but this bullish season won't last forever.
Jump to: