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Replying to Avatar Dikaios1517

Yeah, there's a reason I don't have existing experience with it. I have been avoiding taking a loan on my stack like the plague.

I am currently in a bind though. I don't have other assets that could be used for this amount that I have any equity in at this time, and I don't have cash sitting around to pay for it out of pocket.

My current options are:

1. Sell my Bitcoin to pay for it.

2. Borrow against my Bitcoin to pay for it.

Which of those bad options is the better route? If I sell, I risk having to buy back at a much higher price. If I borrow and the price drops, I risk having to pay it off faster, or put up more of my stack as collateral. Neither option is appetizing, but given where we are in the cycle, I am far more worried about option 1 than option 2 at present.

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Low Information Voter 2y ago

There's no right answer, unfortunately. I only have questions.

If you didn't have the unexpected bill, would you have considered borrowing against your stack to buy more BTC?

(Status quo bias means we are often willing to take poor gambles to avoid a loss that we wouldn't have done to make a gain.)

And if the hype cycle peaked now for whatever reason and BTC then dropped back to its lowest price in three years, could you survive financially whilst repaying the debt?

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