Post
Topic
Board Economics
Re: Bitcoin Investment: Good Debts vs Bad Debts
by
xSkylarx
on 27/06/2023, 10:13:22 UTC
Would you classify borrowing money to invest in Bitcoin as good debt or bad debt?
Depends on the interest rate of your bank. If it's two digits, on the upper side (20-30-40 percent), then it doesn't worth the risk to my mind but if it's a low percent and you have a salary enough to pay your loan and you won't ruin your life doing so, then why not? He who does not risk will never drink champagne, you know.
By the way, if someone takes a loan to buy bitcoin when it reaches its ATH, I would call it a bad debt but if someone buys for example before halving or soon after halving or after the crash of its ATH, then I would call it a good debt.

As long as you can pay it off, then it is okay, because that is really your problem if you invested at ATH, as you haven't researched more. You are right, you can't drink a wine if you are staying in your comfort zone and just waiting for luck to come to you, and even now, most people take out loans to take a risk on their businesses. How much more on us if we know about bitcoin and have the capability to gain profit from it? But again, we only invest what we can afford to lose, as we don't know what will happen to our investment. That is why it is better that if we take out those loans, we can still pay them off even if we lose all our investment.