Cryptcoin users split when borrowing to buy at Bitcoin falls
Some investors in crypto currencies are willing to risk large financial obligations in order to have the opportunity to enter Bitcoin.
Taking on debt is a complex personal decision that should not be made without great care and financial consideration. With the recent return of Bitcoin (BTC) to the highest prices of all time, some astonished Bitcoiners have begun to take out bank loans to increase their asset position. While this may seem like a short path to wealth for some, others see these financial moves as nonsense, given the inherent volatility in space.
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In a Friday tweet from Peter McCormack, the podcaster of What Bitcoin Did said he’d bought 2.55 Bitcoin with a loan of $46,250 with the expectation that he’d have to pay back more than $57,000 in six years.
„In December 2026, if Bitcoin is at $22,669.35, I can’t make it,“ McCormack said. „I wanted to borrow a lot more. My cash flow can easily support the [$800] monthly payments, but this was the limit I could do with my bank after thinking about the idea for a couple of minutes.
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McCormack, a high-profile figure in crypto space, has said that he „can afford to lose“ the money from the investment in Bitcoin. Although he currently earns income from his podcast, his portfolio was also affected in 2018 during the market recession. At that time, he tweeted that he had „turned $32,000 into $1.2 million and was back to almost zero.
Vitalik Buterin has faced these loans. The co-founder of Ethereum revealed in a tweet that he sold half of his BTC holdings in 2013 when he „had only a few thousand dollars of net worth“ instead of taking out a bank loan to buy more crypt.
Please don’t do things like this. I would NEVER recommend anyone get a personal loan to buy ETH or other Ethereum assets.
Normal cryptology enthusiasts seem to have divided opinions when it comes to non-wealthy investors taking out bank loans just to get more cryptology. One Redditor who claimed to have borrowed at the end of September when the price of Bitcoin was less than USD 11,000, said yesterday that they were „borrowing more“ now that the price is above USD 19,000.
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„Taking on debt to buy at $11,000 was a good move,“ said Reddit user Yung-Split in response to the investment. „Be very careful about using it to buy right now and once we go up. […] your optimism could easily destroy you if you get into debt and buy at a local maximum“.
„What you did was gamble and you got lucky,“ said redditor, Grimeflea. „Because you were lucky to think you hacked in and did well. This psychology will burn you out in no time. Anyone who thinks they can intelligently ‚invest‘ someone else’s money is an idiot.
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Cointelegraph reported in June that a flight attendant based in the United Arab Emirates risked jail time and massive debt after he failed to repay a $100,000 loan to the Emirates Islamic Bank.
As of this writing, Bitcoin’s price is USD 19,248, having risen 20.2% in the last month.