Quote from: Justbillywitt on September 16, 2024, 06:34:56 PM

Quote from: adultcrypto on September 16, 2024, 01:33:57 PM

Quote from: letteredhub on September 15, 2024, 11:59:28 PM

Quote from: Ludmilla_rose1995 on September 15, 2024, 04:54:58 PM

smart investors will only make Bitcoin their main investment, and when they need money, they will use the Bitcoin they have as collateral in a lending platform, they are very smart because they realize that there are only 21 million Bitcoins and the amount cannot be increased or decreased.

No, no, no! Anyone using his bitcoin investment as a collateral is no worth regarding as smart because it makes no sense using your bitcoin to take loan on fiat. This is why we are advised to while planning on investing for a long time we also have a reliable income source if possible a stream's of income in order to avoid finding yourself in a messy situation where you would have to make such unwise decision because it's like telling an investor to stake his bitcoin for an altcoin.

How the discussion moved from buying bitcoin for long term holding to loan is what baffles me. The discussion have completely shifted to a new ground that is more or less a distraction. Why would someone doing DCA, for instance, consider taking a loan? The mere though of it simply means that the investor does not really have the cashflow needed to sustain a bitcoin investment for long term so investing in bitcoin may not be the best decision for him but to fix the cashflow. To succeed in bitcoin investment, there should be plans for emergency fund which will serves to keep the investment going when there is some development that requires money which was not seen or planned for in beginning. Without emergency funds, the investment is continuously exposed to risk. Taking a long is never in any of the process of healthy bitcoin investment.

The truth is any person that's taking loan to invest in Bitcoin shows that the person is not in for the long term. The person is basically in for the short term profit and is looking for every little opportunity to make little money by trading off the Bitcoin holding. Because the moment there is a little bullish tend and he see little profit, he/she will sell off the Bitcoin holding to repay the loan. Such people shouldn't be seen or considered as an investor. Because the approach adopted in the first place is not that of an investor but that of traders, because only traders will have that kind of mentality. And these set of people will never listen to what other people will tell them. That's why I don't give a fuck about them when they run into trouble eventually.

Those who take loans are hoping that the price is going to rise and when they get profit they repay the loan. It's such a bad idea to me. Do they ever consider that they can take a loan and buy Bitcoin at $65k and the price reduced to $50k? If it is 10% interest in a year the price might take over 6 months going to one year returning to the buying talk more of making profits.

My solid advice to investors is to get out of debt. Invest with what you have. Its better to have X amount of Bitcoin without debt, than having an X + Y amount of Bitcoin with debt. It may turn out to be X - Y which means there won't be any profit at all if it he doesn't get the profit within the loan timeframe. Such investors will end up paying the interest plus the capital without any profits.