Okay is this a silly ideaā¦?
Discussion
Smart idea (not financial advice).
The fiat system is meant to be abused...
People will say why would you borrow now, why would you do a fixed rate... blah blah.
But if you need the money now for something you can't defer, you simply need it now, not when rates are lower. Same if you don't "need" the money but you see an investment opportunity that must be taken now, that will yield more than the monthly installment.
The only factor I would consider non-negotiable is whether you can afford those 195 pounds every month or not.
Also, as we all know, as bitcoiners, those 10k will be worth approximately 7k in 5 years, and the 195 pound installment will "hurt" proportionally less too.
Only you can answer that. Personally I've done it twice with credit cards at effectively 4% interest rates if paid off within 12 months. If it's for Bitcoin the only question to ask is can you service the repayments?
I've done exactly the same with HSBC. Ā£15K @ 6.6%.
Already WELL into the green!
When exactly? Congrats though!!!
Just went back to look at the details...
Initially I took 13k out mid-2021. Think the interest rate was around 4.5% on that one. Repayment was roughly Ā£250 per month.
In June this year I topped the loan balance up to Ā£15k and went for a longer term which kept the Ā£250 monthly payment the same and gave me an extra Ā£6k to throw at BTC. (So I've borrowed Ā£19k in total)
Assuming thatās to buy more Bitcoin. As long as you can make the loan repayments and you wonāt need another loan in the next few years.
Playing fiat at its own game
Grfsurbias red u us scout bay butsiesta at a
the only question is can you afford the payments. regardless of what it is for
Think of it as reverse DCA. You lump sum buy now and then DCA the cost in over 5 years. It locks in a guaranteed price for BTC now and pre-define monthly outgoing to hedge against future volatility but at a cost of price uncertainty.
Side note is that be sure you are ready to commit and the capital will be used productively.
Btw, When the prices start coming down for loans (as rates cut) you can roll over into cheaper loans and pay off the original which can help bring down the month costs.
The only thing not silly about a loan like that is putting it in bitcoin and making more than 17% over 60 months
If the market stays the same meaning fed continues to prop up the treasury market then yes. We are trying to move to a new system not bring risk with us. Thatās y I disagree with the saylor trade however we do need a mechanism to force dollar creation for the masses to exit which means ngu
Got a āspecialā loan at 0% a few years ago - those loans were meant to āhelpā Covid-hit businesses. Not in favor of loans, but in the Fiat world debt is convenient since real inflation will always overcome interest rates.
So look for lowest possible rates and do it.
Hurdle rate multiplier.
