A Redditor and member of the r/CryptoCurrency community claims it has gained 25%, or $19,500, after taking out three personal loans worth a combined $59,000 to buy Bitcoin (BTC) over the past 18 months.
According to the Redditor, whose account is called “Vaginosis-Psychosis,” they now have a total of 2.65 BTC, which is worth $80,400 at current prices, and are betting heavily on the BTC price hitting $100,000 by early 2025.
On June 30th mail On r/CryptoCurrency, a user provided a sneak peek into how they deal with the highly risky method of acquiring BTC.
The first two loans were taken out in February and June of 2022, totaling $15,000 and $20,000 each. They had a fixed annual percentage rate (APR) of 6% and 4.9% each, with monthly payments totaling $225 and $326.
The third loan of $24,000 was taken out in June of this year, with a fixed APR of 8% and monthly payments of $405.
So far, the Redditor claims he recently paid off a $15,000 loan in May, along with $3,500 down on the second loan. From here, they plan to attack the most recent loan, as that one has the highest APR.
They claim to have accrued BTC at an average price of $24,000 when including interest paid, or $22,264 when not including interest paid.
“The way I see it, the US dollar is rapidly declining in value and status. So, I’m going to take out loans to buy Bitcoin and pay off said loans with the inflated dollars I earn from my job.”
“I don’t expect bitcoin to be trading in that range 18 months from now. I expect bitcoin to be around $100k per coin by then, so I’ll bite the bull on the short-term high APR for bitcoin’s price hike in the long term.”
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The post has more than 500 comments at the time of writing, with some supporting the idea, while many others warning of the dangers of taking such an approach.
“Getting a loan to invest in cryptocurrency sounds like a horror story to me,” says the top comment with 457 upvotes from user “middlemangv,” with “NotAdoctor_but” adding: “Because it is. This is survival bias in His best, and the OP took a calculated risk, most wouldn’t.”
To give more context, the Redditor mentioned that they are single with no kids and make around $60k from their job a year. They also mentioned that they have an affordable rental situation and are happy to invest 25-30% of their income in BTC every month.
As such, the main risks in this case would be primarily around the price of BTC crashing hard and not recovering over the next few years, or losing their holdings via hack if they keep them in a hot wallet.
Preserving employment will also be vital to continue reducing loans.
“Looks like you can pay this. Winning here can change your life.” “Losing,” i.e. BTC is only $35k for three years+, then it just means another year of work. “Kakoyiannaros is worth the risk, congratulations OP,” user wrote. .
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