Topic: What do you think about borrowing against your bitcoin? (Read 565 times)

It seems like a great theory. However, the collateral has to have certain value, no? I mean, it must be nice if bitcoin price increases, then you will have profits. But what if the price crashes? Then would it still worth it as the collateral as the value is not as high as the initial amount? Well, I don't really understand how it works, but the theory seems great for me if only the price remains high, and increasing. However, in this market full of volatility, I don't think things will go as easy as it seems. But there might be chances it works though, maybe someone can try and share their testimony of doing that?

Borrowing without selling to get a few bucks it's quite a great thing for me. Last month I needed to buy both a washing machine and a vacuum cleaner and since I was short of cash I borrowed from Nexo credit line and sent the day on my crypto.com visa card. Next month I will repay in full and that's it.

What is the used of borrowing money and making bitcoin as a collateral when you can exchange bitcoin into fiat and used the money that you have earned in cryptocurrency to sustain tha needs of your family right. Borrowing money is a total kind of risk plus let's add to your burden the fact that whether you have a source of income to be able to pay your monthly due or not you need to provide it. Better you think a better and wise decisiob before you put your bitcoin into collateral.

Considering out those lenders into this forum where loans or borrowed btc should really be paid up on btc form and not on basing on the amount in fiat and thats whats really an advantage for those who do lend you off money and a very unfortunate event into those who borrowed up money.We know on how volatile the price is which means you do need to pay it up fully with bitcoin on exact number.
It would really be putting you in shock this is why i never intend to make out some loan in btc form.I would rather taking a loan in fiat with other viable source or ways i could rather than
on getting some loans in form of crypto.You wouldnt know on what comes next on next month .

Borrowing is very risky as this market is a very volatile one. I won't advise someone to do it if he has other means. Just be contented on what you have and make use of it. Lucky, if the market is in the positive direction when you need to pay the loan. But how about, it is in the negative direction when the lender wants the money? For me, this is not a very smart move.

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.

Borrowing BTC rhymes with gambling BTC: since the value of the loan is usually fiat based and not bitcoin based, if the loan-to-value ratio falls under the emergency threshold it becomes a big liquidation risk! It is not an option to borrow money against bitcoin fro me now. Better to keep on holding.

Mostly people borrow to pay debts but if borrowing fair to extend your Bitcoin possessions is fine, just make beyond any doubt simply have sufficient cash to pay for that obligation or else you’ll finished up offering your Bitcoin fair to pay for it. I moreover don’t like to borrow cash and I just purchase bitcoin with my additional cash so I don’t got to constrain myself hurrying into this showcase, its superior to continuously learn to earn no matter in small but one day it will handsome amount.

It's totally like gambling. Professional investors can't predict the market and they will be in serious risks of loss if bitcoin suffers a temporary devaluation. Bitcoin is good on long run, but it should never be put as guarantee for something on short-medium run. The traditional  holding strategy is still the most efficient in crypto universe and if you want to risk yourself a little more you can also invest your coins to earn passive income, but borrowing against your btcs is insanity.

Borrowing doesn't make your situation much comfortable, it makes it worse. I dont prefer borrowing but after I watch Robert Kiyosaki talks about lending it will change everyone's perception about it.

https://youtu.be/dN5qHjnd_xk

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.

If we are not completely sure about the price growth of bitcoin for the duration of the loan, then obtaining such a loan for investing in bitcoin looks like a gamble. Since the price growth of bitcoin is almost completely unpredictable, then the use of credit is clearly inappropriate here. Many have already talked about their negative experience of obtaining a loan for subsequent investment in cryptocurrency. However, some learn only from their own mistakes.

Possible but this cant really be attained by everybody which do simply means that experience is a must and taking a loan from an experienced person might really give out
different outcome compared to those who did just took up some loan without any idea on when to enter the market.Also, it is somewhat need some sort of luck when you do
deal into this market due to unpredictability then no matter what analysis you would make through.If you do saw some opportunity that you cant let it pass then
its a matter of risk if you do decide to do it but be sure that you do know on what are the next things that you do need to settle.

I don't want to suggest anyone to borrow Bitcoin for trading. Bitcoin is a very volatile currency. And if you borrow 1 Bitcoin at 10000$ rate and used this amount. And Now price of Bitcoin is 50000$. It means that now you have to pay 5 times more then your borrow amount. So, it is very dangerous.

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....

It is risky to use debt as an investment for Bitcoin. Firstly, what will you tell the bank about how you will use this money. Popular bitcoin influencer Peter McCormack used debt to buy Bitcoin and after a while, he posted that his bank does not want to work with him anymore. He said that he will use it for a new car but he invested that money in Bitcoin to buy a better car, I guess. Secondly, you cannot predict the cryptocurrency market since it is too volatile and your money can drop significantly. Finally, if you decided so then you should borrow as much as you can afford to lose. It is not financial advice and no one should risk the money they cannot pay back.

The one who do that will have triple worries since he need to come up with the interest + lose from possible volatility as well might lose everything he loan since he didn't know what is the exact thing to do since I'm sure that he do that(taking loans) because some has been hyped up that they can possibly earn thousands of dollars for investing or trading with bitcoins and crypto.

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.

The amount of money that you do not currently have is also important in terms of how you choose whether or not you should get into the borrowing land.
To me avoiding debt is very important to keep some financial health. When I was young and not having any money I wanted to buy stuff, like everyone else I guess. It was always a great despair not being able to buy things like my friends.
With time and study, I built my financial foundations which now gives me peace of mind.

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.

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. 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.

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.

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.
 

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.

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.

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.

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.

^ 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.

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.

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.

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.

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.

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.

That's a good idea I hope one company will take that idea or an institution that is government funded or regulated will take that idea, so we can avoid selling our Bitcoin when we badly need fiat, many investors are doing and it's recommended to avoid crash on the market, selling a portion like 5 to 10% will not hurt the market and your profit in the future.

Borrowing just to increase your Bitcoin holdings is fine, just make sure that you have enough money to pay for that debt or else you’ll ended up selling your Bitcoin just to pay for it. I also don’t like to borrow money and I just buy bitcoin with my extra money so I don’t need to force myself rushing into this market, its better for me to always play slow that to rush myself from owning Bitcoins.

I guess that is not a good practice, borrowing money and your collateral is your bitcoin, right?

Instead of having profit while you are holding your bitcoin, it will be lost because to pay the interest of your debt or you missed the bull trend that supposed to be you are cutting your profit at that time. Just to avoid having debt, this will not help, I guess it may consider with the small amount but the comment above was right, the debt will still remain debt and you need to pay this with full interest.

Correct!

I would rather prefer that one rather than on getting stressed just because you do have something to repay in due time.Its better to be debt-free than to have that kind of problem.

You wont even know if those loaned money or borrowed amount will really be gaining up knowing that investment in bitcoin doesnt really guarantee profit anytime.

If you do have other source of fund to patch up to pay your loans then its up to you but depending on the profit to repay then better not to proceed at all.

I agree i am against in any debt especially with bitcoin I rather missed out any opportunity to buy it rather than taking a debt or borrowing just to buy and go with the flow. Remember a debt is a debt it will continue to grow because of the interests, I would do another job for me to create money and not to rely with anyone, having a debt for me is a big burden, yes bitcoin may pump and bitcoin may dump in an. instant as well, there's no assurance so do not take debt.

Debt is the worst thing you can do to make yourself financially stable, consider debt as your last resort for anything, debt comes with many things beside the money that comes with it, the favor that you need to do because you are indebted is one of them. Borrowing money to grow it is the most crazy thing because instead of getting the full benefits, there are people that you need to pay some part of what you reaped because you need to payback what you owe and sometimes with interest. Debt only works if you have a company and your company is doing well to make the borrowed money make more money so that when you pay it back, you won't have any problem financially.

I am sure we have our own way to increase the bitcoin amount that we have. But borrowing money just for buying bitcoin will not be recommended, especially if you do not have another income source to pay that loan. Even if you have other income, you should think about your monthly expenses before deciding to borrow money.

I suggest you sell your bitcoin at a high price and buy back again when it is down, so you can increase the bitcoin amount you have while you can take profit from selling your bitcoin. 

I do not like to borrow money, even for my daily needs, because that can make me in trouble.

Well it's not that they have so little cash that they can't even buy groceries. I think in general consider they cash as junk that constantly loses value and that the less you have the better. But yes, they have little cash.

In my case I think it's okay to have a certain amount of cash for the short term. It is true that it is deflationary and that the speed of money printing has accelerated in the last year, but we are still far from hyperinflation like in Venezuela or the Weimar Republic.

Another point to consider here is that I think everyone in the thread has spoken out against getting into debt, but it is very common for large companies or very wealthy people to do so, even when they could pay in cash. See for example Mark Zuckerberg:

"Even billionaires like Zuckerberg have mortgages. Zuckerberg refinanced his $5.95 million Palo Alto, California, estate in 2012 into a 30-year adjustable rate mortgage at an interest rate of just 1.05%. Zuckerberg can clearly afford to just pay cash for any property he wants."

Source: "Why Get a Mortgage if You Can Pay Cash?"

In this case, the reason is twofold: tax reasons and the fact that inflation is above 1%, so borrowing at 1% is making you money, but as we said before that implies risk.

I think this only makes sense to do if your wealth is much higher than the loan you are borrowing, so the risk is very low. If things go bad, there is a downturn in the market, etc. you can pay off the debt without any problems, and I would apply the same to borrowing with Bitcoin.

I guess most of us here agree that debt are traps that are just burdens in our backs lest we use it into something that will create more money. Personally, I think borrowing is acceptable only if you have a plan to repay it, and you use the money into something that will generate more money (and one that has low risk, and is mostly guaranteed to succeed). If you are to borrow fiat and use bitcoin as a collateral, that's one of the most stupidest call given bitcoin's volatility. Unless it's clearly defined in the terms that the price of the collateral at the time of the deal remains constant no matter what happens, perhaps I will think about it, but if not, then it's a no for me.

Also what Max Keiser and Michael Saylor are stating is trying to game the volatility of bitcoin in your favor. Most businessmen tend to think like this: maximizing the usefulness of a certain asset on their favor. I go against this, especially since it promotes debt even if bitcoin is poised for fruitful gains in the coming years. There's just too much risk still.

I also do not encourage this idea, I hate the idea of borrowing in general, so I will never think of taking bitcoin in the form of debt, do not forget that you must return the debt that you took in addition to the interest owed on this amount, so it does not seem like a good idea to me I prefer to buy Direct and investment rather than borrowing.

Likewise, I think people should move away from debts - not head for it. I find the idea of using Bitcoin as collateral very risky, also, I can't imagine what kind of organization would accept it. What if Bitcoin keeps dropping and there'll be no end to it? Anything can happen, and then what?
If these kinds of practices become popular it might lead to a serious crisis! It's bad enough that people take loans not exactly knowing how and when will they return their debt, and we all remember how the mortgage system overuse ended...
But if there were debts with collateral as volatile as Bitcoin - it would be a disaster.

Yeah, but credit cards tend to have outrageously high interest rates.  If you could use bitcoin as collateral for a bank loan, you could probably get a much better rate--but finding a bank (or any other lending institution) willing to accept crypto as collateral might be a problem. 

And imagine that the bitcoin collateral you put up for the loan suddenly drops 25-50%.  You're probably going to have to put up more collateral, much like a margin call.  And seeing as bitcoin is one of the most volatile investments in existence, a drop like that certainly could happen--and quick, too.

If you've got a bunch of bitcoin but need a loan, something's wrong there.  Situations like that make me think the person over-invested in bitcoin and didn't keep enough of a cash reserve on hand.  I'm sure that's happening a lot lately, given how high bitcoin has climbed.

I'm glad that so far the posts agree with what I think. Debt involves risk, and we don't know for sure what will happen in the future. Even if we are very clear that Bitcoin has a promising future, that in the long term it will go up a lot etc., the best thing to do is not to get into debt and if necessary sell small portions or other strategies to avoid debt.

Borrowing definitely is not a good idea at all. However, with regard to bitcoin, we have to change our minds. As long as you understand your money management and the risk involved, I believe we have the capability to earn more money from loans by using bitcoin as collateral.

There is another way to enhance your profit: leverage. Many exchanges offer leverage as a tool for us to have better profits. An x2 leverage can give you a really big amount of money.

Still, each person can have their own opinion on this issue. Lets ones choose himself the best way for his profit

If they are calling people "stupid" by shorting or participating in a short of Bitcoin then you can count me as one of the stupid people in the market right now. Unlike your idea on increasing your debt just to add more position on Bitcoin I think shorting or just simply taking advantage of the price drop when you have your exit plan is more efficient and is a good way of maximizing the capital you already own. Selling your position when it is falling down or is about to fall down is the best way to take profit and at the same time buy it back again at a discounted price.



This will work if you are looking at Bitcoin in the long-run but I don't know how exactly this loan will workout for you since you will definitely have a given period on when you need to pay it out and that is what you need to take in mind. Compared to observing the market and taking advantage of the price drops this for me is more riskier as not only you have a pressure coming from the market but also you have the pressure from your debt.

Personally I don't like this idea, but maybe someone can still agree with you. I wouldn't use bitcoin as collateral to ask for a loan from a platform or someone in fiat just because I didn't want to sell it. I prefer to manage my bitcoin on my own without giving anyone control over the asset I own. Placing it as collateral may be very risky given the market fluctuation non-stop over time. Ok, if the price can still go up 2-3 times, but what if the price goes down 2-3 times ? With a different price from before, of course, this is a loss that must be accepted by the borrower.

What if BTC goes to zero? There is no grantee it will not be worth zero. There can be hidden infatuation and everyone got afraid there are more and they stop believe in Bitcoin. Bitcoin can have a fundamental unsolvable  flaw and some other coin takes his place. There are many other catastrophic scenarios. Chance for Bitcoin to go to zero is not zero. But it is something and you have to hedge against that chance.  Dr. Kim made a good video about it. Prospect Theory: https://youtu.be/REC5V7d3pqM?t=2165   About how we see this small chance as non existent same as the high chance as sure. And that can be a fatal mistake.

If you're the kind of person that willing to face the possible risk, then you're good to go on that strategy of having fiat and borrowing fiat against your Bitcoin.  It depends on me about the situation, if I probably badly need the money and didn't have a choice, it might I will grab the opportunity while I have collateral.  

This seems like gambling, either you will gain profit when upon borrowing or it will have bigger losses because the more days you didn't pay the interest and the more interest rate might the more chances that the interest payments will increase.  If interest rates went up by 3% or 5%, could you still afford the repayments?

But mostly it will end up selling my Bitcoin if I have badly needed money even though what will happen the price and I think, it isn't a good idea to take a loan against your Bitcoin.

They're selling out something that you might be at regret if ever you'll try it out. Why would you borrow your own bitcoin if you're the own holding it? with the idea, you're going to put it as a collateral and will take the cash. You're just adding burden to yourself.

Taking profits is essential for everyone and you can do it at any time that you want and at any price that bitcoin will have. You can sell in batches just as the example you've given and put aside a quantity of bitcoin that you'll hold until it reaches $100k or $1M.

Borrowing against anything is a Risk.
When you think about borrowing against your Bitcoins it becomes a lot worse. Here are my following assumptions:

1. Let us say that you borrowed when the price of the Bitcoins were x , the company seized a part of your Bitcoins as a safe keep now suddenly you wake up and see that the price is 3x. Would you call them and ask for it back ? Would they give it back ? No
Some companies do not require seizing the asset but what IF ! The company itself blocks you from selling those Bitcoins since you borrowed against then in the first place.

If I do own Bitcoins I would never let anyone take a hold of them in the first place!! They are yours , even if the hold is just the legal name listed in the contracts for debt.

2. The pre-qualification if taking the loan would be amazingly weird, high, unacceptable since you would take loan from a centralized body. Would you accept it ? It is indeed a very complicated thing when you consider Bitcoins. I woke trade them , maybe hold them but would not borrow against them , just my personal opinion because I do consider my Bitcoins to be **Money** and **investment** both which is far too valuable than fiat.

Well, the point is there is a calculation when to borrow, but I will not do it for any reason. plus the interest per month will burden us. automatically pay 2x the loan amount, won't this be stressful for us. to avoid borrowing and believe that bitcoin will touch $ 1 million. gradually it will happen.

Well, if I had Bitcoin, and if I believed that Bitcoin will one day reach $1 million, I would never take loan against it wither, because whatever small the interest of loan be, is actually my loss, when I can simply avoid that by just holding my Bitcoin and crypto assets instead of giving it to another lender or lending business then take fiat and then use fiat for use and repay back the loan. Secondly, if I would be borrowing fiat against my crypto, obviously I would must be having some source of income to pay off that debt with interest so that I can have my whole crypto back, so why wouldn't I just use that fiat income to meet my needs and let my crypto hibernate as I hold!?!

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.

It's really won't be easy if the person you are using Bitcoin as collateral is nimble with Bitcoin, the loaner would require the bitcoin of that amount as same as when you want to repay it, let's say it's 0.05BTC then if Bitcoin increase in dollars that's an increase in the collateral because you would repay same 0.05BTC and the value is different from when agreement, this is also a Gamble but who ever does this is a believes the future is Bitcoin because Bitcoin can also reduce in value.

I do not think this is a good idea either and I'm pretty neither of those guys you listed out are financial advisors of any kind, and have tons of money and so it's pretty easy for them to say things like that.  The truth is there is no guarantee of anything.. how do we know bitcoin won't go in to a major crash and bear market territory for the next year or two? We don't.  Yes personally I believe at minimum we are going to see a 100k bitcoin in the somewhat near future, but I think gambling like that, potentially wasting your money ..not for me. 

A lot of people used to use credit cards as their margin account, and that back fired for many users..this is the same principle.

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.