A Redditor and member of the r/CryptoCurrency community, known as “Vaginosis-Psychosis”, recently shared their success story of investing in Bitcoin (BTC). They claim to have made a profit of 25% or $19,500 by taking out three personal loans totaling $59,000 to purchase the cryptocurrency over the past 18 months. Currently, they own 2.65 BTC, which is valued at $80,400.
In a post on r/CryptoCurrency on June 30th, “Vaginosis-Psychosis” explained their approach to acquiring BTC through highly risky means. They took out two loans, one in February 2022 for $15,000 and another in June 2022 for $20,000. These loans had fixed annual percentage rates (APR) of 6% and 4.9%, with monthly payments of $225 and $326, respectively. They then obtained a third loan in June of this year for $24,000, with a fixed APR of 8% and monthly payments of $405.
According to the Redditor, they have already paid off the $15,000 loan in May and made a dent of $3,500 in the second loan. Their plan is to focus on paying off the most recent loan, as it has the highest APR. They calculated their average BTC purchase price, including interest paid, to be $24,000, or $22,264 without considering interest.
Their rationale behind taking out loans to invest in Bitcoin is their belief that the value of the US dollar is declining, and they expect BTC to reach $100,000 per coin by early 2025. They are willing to accept the short-term risk of high APRs for the long-term potential appreciation of Bitcoin.
While the post received more than 500 comments, opinions were divided. Some Reddit users expressed support for the strategy, seeing potential for life-changing gains. Others, however, voiced concerns about the risks involved and warned against following a similar path.
To provide more context, the Redditor disclosed that they are single with no dependents and earn an annual income of around $60,000. They also mentioned having affordable living arrangements and are comfortable investing 25-30% of their income into Bitcoin each month. The major risks they face include a significant crash in the BTC price without recovery over the next few years and the possibility of losing their holdings through a hack if they keep them in a hot wallet. Moreover, maintaining employment is crucial to consistently repay the loans.
Despite the risks involved, many Redditors commended “Vaginosis-Psychosis” for their ability to handle the financial commitment and believed that a successful outcome could be life-changing. However, the prevailing sentiment was that such a strategy should be considered with caution, as it carries substantial risks.
In conclusion, the Redditor’s journey of achieving a 25% profit through taking out personal loans to invest in Bitcoin has garnered attention and generated a discussion within the r/CryptoCurrency community. While some praise their approach, others emphasize the potential dangers and advise against following a similar path without considering the risks involved. It serves as a reminder of the volatility and unpredictability of the cryptocurrency market and the importance of careful consideration before making significant financial decisions.