Post
Topic
Board Speculation
Re: Buy Buy Buy or Sell Sell Sell?
by
Pi-network314159
on 21/06/2024, 04:25:26 UTC
[edited out]
If you are thinking of borrowing to invest then you should look further into yourself whether you can afford to do so or not.
Borrowing for investment may be a good idea, but you should have alternative repayment arrangements that can be repaid within a short period of time. If you are thinking of repaying the loan through investment profits, it is better not to because you cannot predict the market conditions. But if your buying luck is good or if you get dips then the profit potential is high with repayment of your loan.

One can question how rational it can be to invest with debt. But I can say from my personal opinion, investing with debt cannot be reasonable at all. Why would you invest with debt if you can pay off the debt in a short period of time after investing with debt? You can invest in self-financing a little later, when you have the money. Borrowing has some risky aspects. For example: after taking a loan, there is doubt about whether you can pay it back within a certain period of time, you may feel stress after taking a loan, you may have to repay the borrowed money before the time if the borrower is facing danger. When you invest with debt, you cannot create any kind of funds. Because, if you have the money to build the fund, you don't have to worry about borrowing money from anyone. What would you do if you were in danger? On the one hand, the thought of paying the debt, on the other hand, the thought of freeing oneself from danger. In such a situation you can think of withdrawing money from your investment. You may have suffered a loss then. Hence, the idea of ​​investing with debt can become self-inflicted.
Investing with loans is not a bad idea, but if the person taking the loan is aware, then the loan will not have any negative effects. Some people have enriched their investments with loans and today they are reaping the benefits of the investment. If a good investment plan is not taken with the loan, then the loan becomes a burden. I wouldn't say investing in Bitcoin with debt is bad because investing in Bitcoin with long-term debt has the potential for a good return. But of course the borrower needs to be able to repay the loan at regular rates so that they can invest in Bitcoin with no stress loan facility. Buying and holding Bitcoin in a bearish position can create an opportunity to make that money even in a short period of time. But to avoid the risk an investor needs to invest with a long term investment plan.
Though your idea of taken loan to invest in any kind of business including bitcoin may be right to you but to me I don't  see any reason to borrow money to invest in bitcoin, even though it is a long term loan. because bitcoin is volatile does not mean it can give you what you need before the expected time frame of investment. What if you take a loan to pay back in 5 to 6 years and the loan you took to invest in bitcoin didn't give you the capital and the profit to be able to settle the people you took loan from, what will you do? If the price of bitcoin dips so badly within the expected time to withdraw your HODLing to pay off the loan what will you do? As for me it is a bad idea to take loan to invest in Bitcoin. I prefer using my money which I received as salary to invest in bitcoin than loan because there is more comfort when you use your money to invest in Bitcoin than taken loan.