Redditor Soars 25% After Boldly Taking Out $59K Worth of Personal Loan to Buy BTC

A Redditor and r/CryptoCurrency community member is claiming up 25%, or $19,500, after taking out three personal loans for a combined $59,000 in the last 18 months to buy bitcoin (BTC).

According to the Redditor, whose account was originally named “vaginosis-psychosis”, he now holds a total of 2.65 BTC, worth $80,400 at current prices, and he could make a bigger fortune if BTC reaches $100,000 by early 2025. placing bets.

on June 30 Post On r/CryptoCurrency, a user explained how he took a highly risky approach to get his hands on BTC.

The first two loans were taken out in February and June of 2022, totaling $15,000 and $20,000. They had fixed annual percentage rates (APR) of 6% and 4.9% each, with total monthly payments of $225 and $326.

A 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 to have paid off a $15,000 loan as recently as May, as well as deducting $3,500 on another loan. From here, they plan to attack the most recent loan, since it has the highest APR.

They claim to have earned BTC at an average price of $24,000 including interest paid, or $22,264 not including interest paid.

“The way I see it, the value and prestige of the US dollar is rapidly declining. So, I will take out a loan to buy bitcoin and pay off that loan with the increased dollars I earn from my job.

“I do not expect bitcoin to be trading in this range 18 months from now. I expect BTC to be ~$100K per coin by then, so I would cut short term high APR bulls for long term exponential price appreciation of bitcoin,” he said.

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At the time of writing there were over 500 comments on the post, some of which supported the idea, while many others warned about the dangers of taking such an approach.

“Taking a loan for crypto investing sounds like a horror story to me,” wrote the top comment with 457 upvotes from user “middlemangv”, “NotAdoctor_but” added: “Because it is. There’s a survival bias, plus the OP took a calculated risk most wouldn’t.”

Giving further context, the Redditor said that he is single with no children and earns around $60,000 a year from his job. He also said that he has an affordable rental situation, and he is happy to invest 25-30% of his income in BTC every month.

Thus, the major risks in this instance would mainly be around the price of BTC falling drastically and not recovering over the next few years, or losing their holdings through hacks if they keep them in hot wallets.

Maintaining employment will also be important in reducing the debts.

“It looks like you have been able to pay for it. A win here can change your life. A ‘loss’ ie, BTC doesn’t go above $35K for three years+, would mean just another year of work. It’s worth the risk, congrats OP,” wrote user “kakoyinnaros”.

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