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 are sure that it will profit in the next possible months, then its never wrong to take a loan. But the problem is, crypto never guarantees when will you make a profit, even if you come to invest in bitcoin which is the most prominent crypto asset. The reason why we should not consider taking loans especially with high interest as you might lose your money if you mismanage your investments. Just save and invest a portion of it, that way you will always be safe from huge loss.