If the interest rates are lower than the inflation rate, then borrowing money makes sense. It is because you can buy them real assets with the loaned money and make profits. That's completely legal and it is a way to game the system. Right now the banks in my country let me do this and I am getting rich because of it. Of course somebody else has to pay for it and they are those who couldn't get any loans from the banks. I doubled my wealth doing this last year and it worked. Thanks for the cheap money bitchezz
Yeah, but did you buy back your 10 BTC, yet?
There are a lot of ways to dabble around with the accounting in order to say that we made a lot of money, but are we really being honest with ourselves?.. also think about short-term, versus medium term, versus long term. Sure. I am not saying that whatever you did is not working.. but do you have BTC? That's where it is at.. especially if we look at BTC as an investment from a longer time horizon... say for example accumulating BTC in 2018-2020 (or even before that) and being able to mostly HODL those accumulated BTC (perhaps even continuing to add value to the stash/stack) through the next 5-10 years or longer.
If you worried all of your money would gone since investment is risky, there's called diversification.
You are not technically wrong, yet I am not sure if you said that correctly.. because beginner investors (who are not gamblers) might not want to take a lot of risk with their investment(s), so they might be trying to consider how to NOT put their principle at very much risk, so the very first investments that anyone might make might be moreso considered to be savings rather than investments, so dollar accounts with interest or bonds, and once they get their dollar related investments (savings) up to a certain level then they might be ready, willing and able to start taking more risks.
Sure there are some folks, including younger folks, who might not adequately consider the risks, so they consider investing as a kind of gambling and they enter into various risky investments while mostly preparing for UPside price movements and not really adequately calculating and/or considering various downside scenarios.
So, yeah maybe we might call the beginning of investing into more risky (rather than safe) assets as a kind of diversification, and whether they might start out with stock market index funds - which are also considered to be safe, but maybe there might be some desire to go straight into bitcoin?.. but still having dollars and having bitcoin might be a kind of balance, and if there is also equities in the mix, then there might also be some questions regarding how to invest small amounts at a time, and bitcon allows the ability to invest small amounts at a time, but if you ONLY have small amounts to invest, there could be some problems to diversify into the investments. so it may well be better to stay somewhat concentrated, rather than diversifying, but still the level of concentration versus the ability to diversify (to the extent that it is even necessary or advisable) might still be questions regarding how much risk that you are willing to take in regards to how you are already allocating your investment into something like bitcoin versus cash/bonds versus index funds... and sure other categories are property and commodities, which are even more complicated including the need to have higher amounts of capital to even be able to invest into some kinds of property and/or commodities products.
I don't believe in diversification for the mere sake of diversification, but I do believe that if you start to build an investment portfolio (such as in BTC and cash) and the BTC portion starts to get quite large such as equal to a whole year of your living expenses or even 50% of a whole year of your living expenses, you might want to start to consider whether you might need to diversify beyond merely apportionments of bitcoin and cash... and if it might be less risky to have some other kinds of investments (and not referring to shitcoins) but maybe something like index funds, property or gold, and maybe there is no need to buy property until you have 3-5x of your annual income saved up in your investment portfolio..
....and the weighing of these kinds of needs to diversify for the sake of lessening risk are likely going to differ between individuals and their various individual circumstances including but not limited to their cashflow, how much bitcoin they have already accumulated, their other investments (including cash reserves), their view of bitcoin as compared with other investments, timeline, risk tolerance, and their time, skills, goals (investment/lifestyle targets , which includes figuring out the extent that they are in BTC accumulation, maintenance or liquidation stage) and their abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time to consider trading, reallocating, use of leverage and/or financial instruments.