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.
The idea of borrowing to invest in Bitcoin just sounds like placing yourself in double risk, because not only are you relying on the uncertainty of the market, you are also dragging in a liability that must be serviced whether profit comes or not.. People forget that Bitcoin does not move at our command, it does not care if you borrowed or not, it will do what it does and if it decides to dip for months, the lender would not care that you’re still HODLing, they’ll want their money back. That pressure alone can make someone panic sell at the worst possible time, losing both the Bitcoin and still being stuck with the repayment stress..
Another thing is, Bitcoin in its real sense is not even designed for quick money rescue missions, it’s more of a long term preservation tool. When you look at people who succeeded big in Bitcoin, it is mostly those that bought with money they could forget about for a while, not money they needed back next month. Borrowing for such an investment is like planting a tree today and hoping to chop it for firewood tomorrow, it just doesn’t work that way. Even if luck shines and it pumps right after you borrow, that gamble is not sustainable as a strategy, because the same market that went up in your favor can just as easily dump next time..
In my opinion, the smarter way is to always use disposable income, the kind of money you would not cry over if the market takes its time. That way, you give yourself peace of mind and also allow Bitcoin to do its natural growth over the years without forcing your hand. The truth is, investing should never put you in a corner where you are sleepless thinking of how to balance a loan. It is better to miss a move than to force it with debt, because another opportunity will always come. Bitcoin always have opportunities, but your financial peace of mind should not be gambled away just because of fear of missing out…