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.
If you want to invest with debt and if you want to repay your debt with the money from that investment, then it will be a completely wrong decision. Because the goal of investment is to increase capital for the future, which is usually done through long-term planning.
If you cannot afford to pay your loan from income that is other than your bitcoin investment, then you likely cannot afford the loan.. and you are really too tightly cash strapped to be using debt as a leverage.
People are still going to take loans that they are not able to pay back in the event that their investment does not go well, and that will sometimes make persons worse off than they would have had been if they had not taken the loan.
It is better to strive to build up your finances in basic ways before you start to use debt, even though there are some kinds of debt that are really long term, such as student loans and even some housing loans can be quite long.
There are people who already own homes or they own equity in homes, and sometimes they will take out loans to use that money to live, so they get themselves into a worse and worse situation because their income is not high enough to pay for their loan.
Another thing is that Bitcoin is very volatile. It is never possible to say in advance what will happen in the market. If you invest with debt and if there is a decline in the market at the time of your loan, and your entire investment is lost, then how will you repay the debt? Then you may have to sell your land or something else to repay your debt. If you want to manage your investment in this way, then you may be a victim of a very bad situation.
Yep.. People get themselves into such bad situations a lot of the time. Debt and loans are not bad as long as you have an income to service the loans, and even when folks get business loans, they can end up getting into a bad situation if their business does not produce enough revenue to pay for the loan.
Investing with debt is never a right decision.
That is not true.
You can invest with debt if you have an income to cover the servicing of the loan and you are willing to take chances with bitcoin.
It is always better to continue buying based on your discretionary income.
That is not true. If you do proper calculations you can use debt and/or other financial instruments that are risky, and sure there is additional risk, and it might put you in a worse situation by employing such debt or financial instruments.
I frequently suggest that if you do not use debt, then the most that you can lose is 100%, but if you use debt and/or other financial instruments, you can sometimes lose way more than 100%. You can take a winning bet (bitcoin) and turn it into a loser.
If you do not do this and want to invest with debt, you may go bankrupt after a while.
It is true that you may well not need to take extra risks in order to try to leverage your position, yet there are people who successfully employ those kinds of techniques and they may well also have various back up plans to cover themselves too.