Ninjastic
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Board Politics and society (Naija)
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Re: Balancing Financial security and Bitcoin Accumulation
by
ruykeri
on 19/09/2025, 14:31:51 UTC
⭐ Merited by Creeper0 (3)
Quote from: Barikui1 on September 18, 2025, 06:00:06 AM
Quote from: GIF-JOBS on September 18, 2025, 05:29:45 AM
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.
I understand your sentiment bro, but you are actually missing the point in this context. Take note that you are not paying it back from your Bitcoin investment, so it's proper to say that you repaying back the loan doesn't depends on what what Bitcoin is doing in the market, so you will be paying back from another source.
And I just want to point it to you that before taking such actions, by investing with a borrowed money, the key things to watch out for is the terms and conditions for it, if it's a loan that can be repaid back installmentally and the repayment plan is spread across three years or more with an interest rate as low as 0.6% yearly , then it too good to ignore because these are one of the opportunities the rich utilize to build wealth overtime, but the poor choose to borrow money for consumptions.
You are talking about something completely unrealistic. I don't think any bank or financial institution will give a loan at an annual rate of 0.6%. Where the average interest rate in the world is 5.5%, taking a loan at a rate of 0.6% and investing it in Bitcoin is just a fantasy. Banks or any type of financial institutions take money from us at a low interest rate and lend it to others at a higher interest rate. If a country's interest rate is 4%, it means that the value of all the assets it had last year has decreased by 4%. In such a situation If a bank gives a loan at a rate of 0.6%, the bank itself will lose. Bitcoin cannot be invested with such unrealistic thinking. In the case of investment, one should always make decisions by thinking about one's own financial position and reality. So that there is no obstacle in investing for a long time.

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So I would like to add another thing, that is, the rate at which inflation is increasing in the world. In this case, if we keep our country's currency with us or deposit it in the bank and want to increase our wealth as annual interest, it will be a wrong decision for us because the annual inflation rate is increasing. As a result, if we keep money in the bank for one to two years or more, we may get a profit according to interest rate but if it is less than the inflation rate, then that profit will not be of any use to us because even after keeping the money in the bank for so many years, the value of the money has not increased. That is why I think investing in Bitcoin with proper way is a much better way than keeping money in the bank.