Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
If you have another sources that can generate an income, taking loans may give advantage to you like if you want to increase or widen your investments. The more investments you have, the higher the chances you will live a good and profitable life. But if you only want to take loans for your first time investment, most likely it would not work. There are still no guarantees that you will succeed on it so how would you repay the loan amount. Believe me, it will only give you a lot of headaches. Better save then invest. And only invest what you can afford to lose.
Another source of income would be the key because you wont really be able to pay those loans or debts if you do only rely with your crypto investment since we know that it wont really give out any assurance
that you could make out profits on the right time and if you do depend on those gains then this is something that wont really be that effective yet we know that everything is unpredictable or cant be known.
Taking loan for crypto investment is something a risky thing to be done but if you do see some opportunity and you could pay it out without any problems then i dont see any issues with it.