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Although it might look tempting to borrow and jump into Bitcoin, the real issue isn’t just about whether you can repay the loan, but also what kind of mindset it builds. Borrowing makes people treat Bitcoin like a get rich quick scheme because there’s pressure to see fast results. That goes against the whole idea of Bitcoin as a long-term savings technology. If every dip starts to look like a threat to paying back a loan, then the person isn’t really investing anymore, they’re gambling with borrowed time.
The real strength of Bitcoin comes when you buy with calm money, the type you don’t need for survival or obligations. That’s what allows someone to hold through cycles without fear. Even if the market stalls or drops, there’s no creditor breathing down their neck. Borrowing might get you in faster, but it also sets you up for panic decisions that erase the very benefits of holding.
Bitcoin investment is a time of investment in which you plan its success from the beginning. Planning the success I mean is not starting from the beginning to predict how much bitcoin price would be in 2 years time or in 3 years time. This is not what it means to plan for bitcoin success! To avoid panic during your process of accumulating bitcoin, it is very advisable to invest strictly by discretionary income as this is the best way to ensure you HODL for a long-term. Discretionary income is the money you won't need anytime soon or an amount that remains after taking care of yours basic responsibilities.
This means that borrowing to invest in bitcoin is running on a negative balance and such person could be glued to the chart always and could panic sell at any slight opportunity. Such a person may envisage holding for a certain period of time which is not always long enough (because of the interest or pressure to repay). This has a higher probability of disappointment and mostly ends in losses. Even though an investor has a stable source of income, as long as he is not ready to become a bitcoin gambler, it is not advisable to borrow and invest in bitcoin.
Come to think of this, if the market dips to $90k and you quickly borrowed a given amount to invest due to FOMO, all your mind would be set on bitcoin not to dip beyond that price. What happens if bitcoin goes on to dip down to $80k, you may run out of patience and tend to regret your actions due to the financial stress it would cause you. The best practice is, define your financial situation, work on your cashflow management and set your DCA approach accordingly using any discretionary income you may have. This would help you to avert any panic if market volatility sets in.