We are currently in a dip, an investor who regularly invests $200 weekly and wants to take advantage of this dip can take a loan of lets say $5,000 with an interest rate of 5% in order to buy more quantity of bitcoin at this reduced price. Now, this $5,000 is equivalent to 6 months and 1 week of his normal accumulation timeline if we go by 4weeks for a month calendar and possibly, he spreads the repayment to about a 9 month timeline. The totality of what he is to pay is $5250 and spreading it across his 9 months timeline would see him repaying approximately $146 monthly while he still has $54 to continue his DCA.
Where do you think one can get a loan with an interest rate of 5% and for how long? I asked you because I've not really seen that and for how long. Your Narative is actually wrong because I am still contemplating who is going to give you a loan of 5% to pay all in 9 months. Most loan I've been seeing is between 15% and 35% depending how long it's going to take you to clear the loan.
Just imagine getting a 5k loan with an estimated interest rate of about 15% to 25% although this could depend on your region and what platform you are using to get the loan.
If you multiply 5k × 20% to be paid within 9 months timeframe. That means you are paying 1k extra making it 6k to be paid.
The question here is that what's the assurance that you 5k investment could worth more than 6k in 9 months timeframe. You know that the market is unpredictable and it would make sense to take risks without proper planning for backup funds which is very important.
China gives at an interest as low as 3.10% benchmark per annum. The value for China is from last month.
Switzerland had the cheapest interest rates on personal loans, it was around 2.86% as at 2023, but I'm not getting the accurate figure for now, but it's really low.