Ninjastic
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Board Politics and society (Naija)
Re: Balancing Financial security and Bitcoin Accumulation
by
GIF-JOBS
on 18/09/2025, 05:29:45 UTC
Quote from: Proty on September 17, 2025, 08:34:12 PM
Quote from: Zackz5000 on September 17, 2025, 06:40:59 PM
Quote from: JayJuanGee on September 16, 2025, 12:27:31 AM

There are various ways to consider a loan, and surely any loan will have terms that cause it to cost money, and surely if the loan has favorable terms in regards to length of time and/or fees, then it could be worth while to enter.  A loan can be used as a way to frontload an investment into bitcoin with income that has not yet come in.  You should be able to pay off the loan no matter if bitcoin performs well or not during the term of the loan. 

If bitcoin performs poorly then you might realize that the loan did not work to your advantage, and you would have had done better to just invest with your normal income and you would not have had to have had paid the fees.

If bitcoin performs well during the term of the loan, then of course, you will feel like a genius that you were able to buy more bitcoin than you otherwise would have had been able to buy through your regular income.

The main things are the fees, the term of the loan and your ability to pay back the loan, even if bitcoin goes to zero during the duration of the loan.
Your break down about opting for a loan to invest in Bitcoin is understandable, first of all we should know that Bitcoin is a volatile asset and also a long time investment so we shouldn't hope on our Bitcoin investment to pay back our loan there should be a different means to pay back and not hope on our Bitcoin investment.

The ability to pay back is really what matters no matter the outcome of our Bitcoin investment one should not borrow money if the hope of paying back is through your Bitcoin investment it is better not borrow because you won't like your self when the time to pay back has exceed.
Definitely borrowing money to invest in bitcoin with the hope of paying back from the profit our investment will yield is very lame idea. Bitcoin is a volatile coin an as such it won't really be a nice idea to be hoping of making quick profit from bitcoin in other to salvage our loan . In other not incur unnecessary debt it will be wise not borrow money to invest in bitcoin if we are sure or certain of the means of getting money to pay back.
Taking a loan means that you have to repay the loan in any way, and investing in Bitcoin with a loan means that if you cannot achieve success from this investment, then you will not be able to repay your loan. Now the question is, Since you are investing in Bitcoin with debt, Is the success of your investment guaranteed? Bitcoin is a currency thats moves very volatilely, so there is no guarantee that you will succeed here, now that there is no guarantee of success here, then how can you invest beyond your means here? Even with a loan, which you have to return with more interest after a certain time? Making such a decision is definitely very foolish, market fluctuations can cause losses in an instant, and then it will be difficult to repay the loan, so you have to invest with what you can afford to lose, decide to invest from discretionary income.