Debt settlement is a complex personal decision that should not be made without extreme caution and financial considerations. Since Bitcoin (BTC) has recently returned to a consistently high price, some Bitcoin bulls have started taking out bank loans to increase their position in the asset. While this may seem like a shortcut to wealth for some, others find such economic moves foolish given the internal fluctuations in space.
On Friday, in a tweet from Peter McCormack, What Bitcoin Did said he bought 2.55 bitcoins with a $ 46,250 loan, expecting him to repay over $ 57,000 over six years.
McCormack said: “If the price of Bitcoin in December 2026 were $ 22,669.35, I would be in line with that price.” “I wanted to borrow more. My cash flow could easily support [$ 800] monthly payments, but that was the limit I could set with my banker after a few minutes of thinking about the idea. ”
McCormack, a leading cryptocurrency expert, said he can “afford to lose” money by investing in bitcoins. Although he is currently generating podcast income, his portfolio also shrank in 2018 during the market downturn. At the time, he tweeted that he “converted $ 32,000 to $ 1.2 million and returned to almost zero.”
Vitalik Buterin was categorically against such loans. The Ethereum co-founder tweeted that he sold half of his BTC assets in 2013 when “he only had a few thousand dollars of equity capital,” instead of taking a bank loan to buy more cryptocurrencies.
Crypto enthusiasts by nature seem to be divided when it comes to low-income investors who take out bank loans just to make more cryptocurrencies. Redditor, who claimed to have taken out the loan at the end of September when bitcoin was below $ 11,000, said yesterday that they are “borrowing more” now that the price is above $ 19,000.
“Borrowing to buy at 11k was good,” Reddit user Jung-Split said in response to the investment. “Be very careful using it to buy now and as we grow. […] Your optimism can easily destroy you if you borrow and buy at a local peak. ”
“I made a bet and I was lucky,” said the editor Gremiflia. “Because you’re lucky, you think you got through this and did it right. This psychology will soon burn you. […] Anyone who thinks you can intelligently ‘invest’ other people’s money is an idiot. ”
In June, Cointelegraph reported that a flight attendant based in the United Arab Emirates was at risk of jail time and huge debts for failing to pay a $ 100,000 loan from Emirates Islamic Bank.
At press time, Bitcoin is worth $ 19,177, up 20.2% over the past month.