Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
⭐ Merited by JayJuanGee (1)
Why would you want to get a loan in paper bitcoin, though?
I don't 
But I can imagine bankers coming up with this scenario for profit.Quote
Why not take a loan in paper dollars, and use them to buy bitcoin? This way, you don't have counterparty risk (bank going bankrupt, or practicing fractional reserve with no reserves), while you do borrow the bitcoin. You're also increasing the supply of dollars, while decreasing the market supply of bitcoin, driving the price up.
I wouldn't invest borrowed money, but I'm risk-averse when it comes to debt.I wouldn't have the balls, but got a friend who took on a huge loan (about 3x his annual income) and bought BTC @60k.
he is able pay back the full loan + interest with his income over the years while his BTC stash gains value against the fiat he borrowed.
If he looses his job... too bad, his BTC are already on some addresses nobody has access to apart from him.
I really consider it a smart move without too much risk...