A Reddit user and member of the r/CryptoCurrency community claims to have gone up 25%, or $19,500, after taking out three personal loans worth a combined $59,000 to buy Bitcoin. (BTC)) in the last 18 months.
According to the Redditor, whose account is crudely named โVaginosis-Psychosisโ, they now have a total of 2.65 BTC, which is worth $80,400. at current pricesand they are betting big on him BTC price hits $100,000 in early 2025.
On a June 30 mail On r/CryptoCurrency, the user explained how they approached the highly risky method of getting their hands on BTC.
The first two loans were taken out in February and June 2022, for a total of $15,000 and $20,000 each. They had a fixed APR of 6% and 4.9% each, with monthly payments totaling $225 and $326.
Then, in June of this year, the third loan was taken out for $24,000, with a fixed APR of 8% and monthly installments of $405.
So far, the Redditor claims to have recently paid off the $15,000 loan in May, as well as reduced $3,500 on the second loan. From here, they plan to attack the most recent loan, since it has the highest APR.
They claim to have accumulated BTC at an average price of $24,000 when interest paid is included, or $22,264 when interest paid is not included.
โFrom my point of view, the value and prestige of the US dollar is rapidly declining. Therefore, I will take out loans to buy Bitcoin and I will pay those loans with inflated dollars that I earn from my work.โ
โI don't expect Bitcoin to trade in this range 18 months from now. I expect BTC to be ~$100K per coin by then, so I'll bite the bull from short-term high APR to long-term exponential Bitcoin price appreciation,โ they added.
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The post has over 500 comments at the time of writing, with some supporting the idea while many others warn of the dangers of taking that approach.
"Taking [a] Loan to invest in cryptocurrency seems like a horror story to me,โ reads the top comment with 457 upvotes from user โmiddlemangv,โ with โNotAdoctor_butโ adding: โBecause it is. This is survivorship bias at its finest, also OP took a calculated risk, most won't."
Giving more context, the Redditor stated that they are single with no children and earn around $60,000 from their work annually. They also stated that they have an affordable rental situation and are happy to invest 25-30% of their income in BTC each month.
As such, the main risks in this case would mainly be that the price of BTC crashes sharply and does not recover in the next few years, or lose their properties through a hack if they keep them in a warm wallet.
Maintaining employment would also be vital to further reducing lending.
โYou seem able to afford this. A victory here can change your life. A 'loss', i.e. BTC doesn't go above $35K for more than three years, would just mean another year of work. Worth the risk, congratulations OP," wrote user "Kakoyiannaros.
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