A Reddit user and r/CryptoCurrency community member says he’s up 25%, or $19,500, after taking out three personal loans totaling $59,000 to buy Bitcoin (BTC ) had recorded.
According to the Redditor, whose account is roughly named “Vaginosis-Psychosis,” they now have a total of 2.65 BTC, which is worth $80,400 at current prices, and are heavily betting that the BTC price will hit early 2025 will reach $100,000.
In a June 30 post on r/CryptoCurrency, the user gave an overview of how he approached the highly risky method of getting BTC.
Post on r/CryptoCurrency. Source: Reddit.
The first two loans were taken in February and June 2022 in amounts of $15,000 and $20,000 respectively. They had a fixed annual percentage rate (APR) of 6% and 4.9%, respectively, with monthly payments totaling $225 and $326.
Then, in June of that year, the third loan was taken out for $24,000 with a fixed APR of 8% and monthly payments of $405.
So far, the Reddit user says he recently repaid the $15,000 loan in May and cut an additional $3,500 off the second loan. From here they plan to attack the most recent loan as it has the highest APR.
They claim to have accumulated BTC at an average price of $24,000 when the interest paid is taken into account, or $22,264 when the interest paid is not taken into account.
“In my opinion, the US dollar is rapidly declining in value and reputation. Therefore, I will borrow to buy bitcoin and repay those loans with inflated dollars I make from my job.”
“I don’t expect bitcoin to be trading in this range in 18 months. I expect BTC to be worth around $100,000 per coin by then, so I’ll be biting into a short-term high APR for Bitcoin’s long-term exponential price rise,” they added.
Related: US Securities and Exchange Commission finds spot bitcoin ETF filings insufficient: report
At the time of writing, there were more than 500 comments on the post, some supporting the idea while many others warned of the dangers of such an approach.
“Take [a] Credit for crypto investing sounds like a horror story to me,” reads the top 457 upvoted comment from user middlemangv, with NotAdoctor_but adding, “Because it is. This is survival bias at its finest, even OP took a calculated risk, most won’t.”
Comments on the post. Source: Reddit.
For further context, the Reddit user stated that they are single with no children and make about $60,000 a year from their job. They also stated that they have an affordable rental situation and are happy to invest 25-30% of their income in BTC every month.
Therefore, the main risks in this case are mainly that the price of BTC crashes sharply and does not recover in the next few years, or that they lose their holdings through a hack if they keep them in a hot wallet.
In order to further cut credit, it would also be important to preserve employment.
“They seem to be able to pay for that. A win here can change your life. A “loss,” meaning BTC not going above $35,000 for three years, would mean just another year of work. Well worth the risk, congratulations OP,” wrote the user “Kakoyiannaros.
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