Post
Topic
Board Economics
Re: Bitcoin Investment: Good Debts vs Bad Debts
by
Don Pedro Dinero
on 22/10/2023, 06:56:49 UTC
 Now in the hopes that Bitcoin will appreciate,  it then turns out to be a good debt of one borrows money to invest in it. Some might also say playing it safe doesn't bring in any real cash. There's always a tendency for things to go south when it comes to investments regardless of where the investments are allocated. Bitcoin brings forth the possibilities of financial freedom but it also comes with a cost.

The point is that the so-called good debts should not be used for investment in the case of low and medium incomes, only in the case of your house, which Kiyosaki would not agree with, but I give my take on it.

For people of moderate or low income what works best for them is to control expenses, try to increase income, and save constantly in assets in which they can do DCA, it can be bitcoin, index funds or we can consider the mortgage of your house a DCA. As much as Kiyosaki considers it a liability, from a balance sheet point of view it is not (it takes money out of you pocket but you build equity that you can cash in later on).

Companies, for example, or people with large amounts of capital such as Michael Saylor, who has bought a large part of the bitcoins he has by issuing debt, do it for investment. But they are on a different level.