Bitcoin

Bitcoin Prices Are Up 25% After A Redditor Took Out $59K Worth Of Personal Loans

07/01/2023
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Table of contents

  1. Redditor claims he has repaid his first three BTC loans at typical cost of $24,000
  2. Redditor: I earn $60,000 annually, I keep my BTC in hot wallet
A Redditor and individual from the r/CryptoCurrency community is professing to be up 25% or $19,500, in the wake of taking out three individual credits worth a consolidated $59,000 to purchase Bitcoin (BTC) throughout the course of recent months. The Redditor, whose account is simply referred to as “Vaginosis-Psychosis,” claims that they currently hold a total of 2.65 BTC, which is equivalent to $80,400 at current prices. Additionally, they are placing a significant wager that the price of Bitcoin will reach $100,000 by the beginning of 2025.

Redditor claims he has repaid his first three BTC loans at typical cost of $24,000

The initial two advances were taken out in February and June of 2022, adding up to $15,000 and $20,000 each. With monthly payments of $225 and $326, they had a fixed annual percentage rate (APR) of 6% and 4.9%, respectively. In June of this year, the third $24,000 loan was taken out with a fixed APR of 8% and monthly payments of $405. The Redditor claims to have paid off the $15,000 loan in May and reduced the second loan by $3,500 so far. From here, they intend to go after the latest advance, as that has the most elevated APR. They guarantee to have gathered BTC at a typical cost of $24,000 while including interest paid, or $22,264 while excluding interest paid. At the time of writing, there were more than 500 comments on the post. Some of the comments were supportive of the concept, while many others warned of the risks involved.

The most popular comment, which received 457 upvotes from user “middlemangv,” reads, “Taking [a] loan for crypto investing sounds like a horror story to me,” with “NotAdoctor_but” adding, ” Since it is. This is the purest form of survivorship bias, and OP took a calculated risk; most people won’t.

Redditor: I earn $60,000 annually, I keep my BTC in hot wallet

The Redditor provided additional context by stating that they are single, have no children, and earn approximately $60,000 annually from their job. They also stated that their rent is affordable and that they are happy to put 25-30% of their monthly income into BTC. As a result, the most significant risks in this scenario would primarily revolve around the possibility of losing their holdings as a result of a hack if they do keep them in a hot wallet or of the price of BTC plummeting significantly and not recovering over the course of the subsequent years. Keeping up with work would likewise be crucial to continue to chip the advances down.

“You appear to be able to pay this. Success here can completely change you. A “loss,” in which BTC does not exceed $35K for more than three years, would only necessitate additional labour. Worth the risk, congrats, OP,” the user named “Kakoyiannaros” wrote.

Source: https://www.cryptoknowmics.com/news/bitcoin-prices-are-up-25-after-a-redditor-took-out-59k-worth-of-personal-loans