Redditor Takes Bold Approach by Taking out $59K in Personal Loans to Invest in Bitcoin, Sees 25% Gain

7:40 am
July 1, 2023
Featured image for “Redditor Takes Bold Approach by Taking out $59K in Personal Loans to Invest in Bitcoin, Sees 25% Gain”

A Redditor from the r/CryptoCurrency community has shared their success in a recent post, claiming to be up 25% or $19,500 after taking out three personal loans totaling $59,000 to purchase Bitcoin (BTC) over the past 18 months. The Redditor, who goes by the name “Vaginosis-Psychosis,” now holds a total of 2.65 BTC, valued at $80,400 at the current price, and is optimistic about BTC reaching $100,000 by early 2025.

In their post on r/CryptoCurrency, the Redditor explained their approach to acquiring BTC through this highly risky method. They obtained their first two loans in February and June of 2022, amounting to $15,000 and $20,000 respectively. These loans had fixed annual percentage rates (APR) of 6% and 4.9%, with monthly payments of $225 and $326. In June of this year, they took out a third loan worth $24,000 with a fixed APR of 8% and monthly payments of $405.

Currently, the Redditor claims to have paid off the $15,000 loan in May and reduced the second loan by $3,500. Their plan is to focus on paying off the most recent loan, as it has the highest APR. The Redditor states that they acquired BTC at an average price of $24,000, including interest paid, or $22,264 without considering interest.

Although the Redditor’s post has received over 500 comments, with some in support and others warning of the risks involved, they remain confident in their strategy. They believe that the declining value of the US dollar justifies taking loans to buy BTC and paying them back with inflated dollars earned from their job. Their goal is to hold onto BTC, expecting it to reach $100,000 per coin within 18 months. They acknowledge the short-term high APR as a trade-off for the potential long-term exponential price appreciation of Bitcoin.

It is important to note that this approach carries significant risks, primarily the possibility of a major BTC price crash without recovery over the next few years or the loss of their holdings through a hack if they store them in a hot wallet. Maintaining their employment is also crucial to continue paying down the loans.

FAQs

Is taking out personal loans to invest in Bitcoin a good idea?

Taking out personal loans to invest in Bitcoin is a highly risky move. It can potentially lead to significant gains if the price of BTC rises, but it can also result in substantial losses if the market crashes and the price fails to recover. Additionally, relying on borrowed money to invest in a volatile and unpredictable asset like Bitcoin is a speculative strategy that should only be undertaken with careful consideration of the associated risks.

What are the risks involved in borrowing money to invest in Bitcoin?

The main risks of borrowing money to invest in Bitcoin include the potential for a significant decline in the price of BTC without any recovery, leaving the borrower in debt. There is also the risk of losing the invested funds through hacking or other security breaches if the Bitcoins are stored in a hot wallet. Additionally, if the borrower is unable to maintain employment or experiences a decrease in income, it could become challenging to make loan payments, potentially leading to financial difficulties.

What should investors consider before taking out personal loans for investments?

Before taking out personal loans for investments, investors should carefully evaluate their financial situation, risk tolerance, and investment strategy. It is essential to consider the potential returns and risks associated with the investment, as well as the ability to repay the loan. It is advisable to seek professional financial advice and thoroughly research the investment opportunity before making any decisions.


Share:

More in this category ...

7:34 pm April 17, 2024

Crypto Exchanges Bitcoin Supply Can Only Last For 9 Months, ByBit Report

Featured image for “Crypto Exchanges Bitcoin Supply Can Only Last For 9 Months, ByBit Report”
7:27 pm April 17, 2024

SUI spikes 11% as BTC, ETH slide: Here’s why Sui value is surging?

Featured image for “SUI spikes 11% as BTC, ETH slide: Here’s why Sui value is surging?”
4:46 pm April 17, 2024

Using dig +hint to know DNS solution from begin to end

Featured image for “Using dig +hint to know DNS solution from begin to end”
12:15 pm April 17, 2024

Puffer Finance raises $18 million in new investment spherical

Featured image for “Puffer Finance raises $18 million in new investment spherical”
7:37 am April 17, 2024

XRP Price Recovery Could Soon Fade, These Are Key Levels To Watch

Featured image for “XRP Price Recovery Could Soon Fade, These Are Key Levels To Watch”
5:06 am April 17, 2024

IBM and TechD companion to safely percentage knowledge and gear insights with gen AI

Featured image for “IBM and TechD companion to safely percentage knowledge and gear insights with gen AI”
5:03 am April 17, 2024

WOO unveils innovation hub thinking about Bitcoin’s ecosystem

Featured image for “WOO unveils innovation hub thinking about Bitcoin’s ecosystem”
9:51 pm April 16, 2024

OKX launches public mainnet for its ZK-powered L2 community “X Layer”

Featured image for “OKX launches public mainnet for its ZK-powered L2 community “X Layer””
7:40 pm April 16, 2024

Arkham Releases Top 5 Crypto Rich List

Featured image for “Arkham Releases Top 5 Crypto Rich List”
5:27 pm April 16, 2024

Ankr and Brevis coChain associate to reinforce web3 networks with ZK

Featured image for “Ankr and Brevis coChain associate to reinforce web3 networks with ZK”
5:48 am April 16, 2024

4 techniques generative Machine Intelligence addresses production demanding situations

Featured image for “4 techniques generative Machine Intelligence addresses production demanding situations”
12:14 am April 16, 2024

Germany’s biggest federal state financial institution companions with Bitpanda

Featured image for “Germany’s biggest federal state financial institution companions with Bitpanda”
7:46 pm April 15, 2024

Dogecoin Whales Send 800 Million DOGE To Exchanges, Dump Incoming?

Featured image for “Dogecoin Whales Send 800 Million DOGE To Exchanges, Dump Incoming?”
6:09 pm April 15, 2024

Data virtualization unifies information for seamless Machine Intelligence and analytics

Featured image for “Data virtualization unifies information for seamless Machine Intelligence and analytics”
5:02 pm April 15, 2024

NEO rebounds previous $22.8 as this meme coin presale surges previous $4.8 million

Featured image for “NEO rebounds previous $22.8 as this meme coin presale surges previous $4.8 million”
7:49 am April 15, 2024

SOL Price Dump and Pump, Can Solana Overcome Selling Pressure?

Featured image for “SOL Price Dump and Pump, Can Solana Overcome Selling Pressure?”
7:49 pm April 14, 2024

Bitcoin Bonanza Before The Halving? Analyst Sees Pre-Crash Buying Window

Featured image for “Bitcoin Bonanza Before The Halving? Analyst Sees Pre-Crash Buying Window”
7:52 am April 14, 2024

Avalanche (AVAX) Downtrend Persists Amid Market Uncertainty

Featured image for “Avalanche (AVAX) Downtrend Persists Amid Market Uncertainty”
9:49 pm April 13, 2024

Binance Labs backs BounceBit for Bitcoin restaking and CeDeFi revolution

Featured image for “Binance Labs backs BounceBit for Bitcoin restaking and CeDeFi revolution”
7:56 pm April 13, 2024

Market Expert Reveals Why Solana Price Is Poised To Go Higher

Featured image for “Market Expert Reveals Why Solana Price Is Poised To Go Higher”
2:37 pm April 13, 2024

Bitfinex introduces tokenized debt for El Salvador’s first Hampton by means of Hilton Hotel

Featured image for “Bitfinex introduces tokenized debt for El Salvador’s first Hampton by means of Hilton Hotel”
7:59 am April 13, 2024

Analyst Predicts ‘Realistic’ 5x Surge To $3

Featured image for “Analyst Predicts ‘Realistic’ 5x Surge To $3”
7:50 am April 13, 2024

IBM researchers to put up FHE demanding situations at the FHERMA platform

Featured image for “IBM researchers to put up FHE demanding situations at the FHERMA platform”
7:25 am April 13, 2024

Algotech’s 3rd presale degree surpasses $3.7m, with over 94 million tokens offered up to now

Featured image for “Algotech’s 3rd presale degree surpasses $3.7m, with over 94 million tokens offered up to now”
12:13 am April 13, 2024

Omni Network lands on Binance Launchpool as Algotech alternatives presale momentum

Featured image for “Omni Network lands on Binance Launchpool as Algotech alternatives presale momentum”
8:10 pm April 12, 2024

Merging top-down and bottom-up making plans approaches

Featured image for “Merging top-down and bottom-up making plans approaches”
8:01 pm April 12, 2024

Shiba Inu Sell Pressure Is Dropping

Featured image for “Shiba Inu Sell Pressure Is Dropping”
4:53 pm April 12, 2024

Hong Kong’s spot ETFs document drives BTC upper; traders pile into Bitbot presale

Featured image for “Hong Kong’s spot ETFs document drives BTC upper; traders pile into Bitbot presale”
9:41 am April 12, 2024

Monero (XMR) trade troubles proceed with some other main delisting

Featured image for “Monero (XMR) trade troubles proceed with some other main delisting”
8:31 am April 12, 2024

IBM Blog

Featured image for “IBM Blog”