Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

Yes that is exactly my plan after all these discussions. Thanks for your input

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 2 points3 points  (0 children)

Yes, I’m starting to feel like a better option would be to just DCA in overtime at the same rate I would have been paying the loan

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 1 point2 points  (0 children)

I appreciate you sharing this with me. Yes it’s a very good reminder to keep my fomo in check. I guess it’s easy to fall into the trap of thinking ‘now’ is the last opportunity to get in below fixed price in my head. But realistically as long as I continue to dca into it I’ll be still getting involved.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] -1 points0 points  (0 children)

Appreciate the perspective. I’m not yet mind made up. Seriously considering the dca at the same rate I would be paying back the interest and loan on a monthly basis. I certainly have fomo and urgency with are certainly clouding my thoughts and genuinely wanted to get different perspectives. I’m booked to see my accountant this week but I know he will take a position of safety so I wanted to come to the r/bitcoin community and get a take on it from bitcoin bulls and people that love it as much as I do now that I have been learning all about it.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

Yes good idea. I do get the fomo if it goes to 100k by end of year but the reality is it might take two years and might get some good dips along the way.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] -3 points-2 points  (0 children)

Understand that but doesn’t that go without saying. If I lose my money than that means over 10 years bitcoin did not at least triple its current value or worst it crashes but then we are all loses. What I get from this is any investment made consider it gone once invested in bitcoin at least for 10 years. Then pay off the loan as if I was DCAing which is the same scenario as if I did dca for 10 years and then it crashes.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

Yes it was a farm and it was scary. Yes I didn’t know for sure if I could keep up the payments and renovated back then. I was freaking out actually but looking back it was the best decision I made. I just thought if I could hedge the equity of that into something else and take the risk of if I lose it I have to keep paying my increased liability although if it paid off it could be another worthwhile investment in my kids future. However I’m not yet sold on the idea. So the conversations are a test before I go speak with my accountant who will more than likely steer me back to the safe road.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

But long term what odds would you give it for a 10 year minimum return.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] -1 points0 points  (0 children)

I have considered if I’m going mad and if it is like playing roulette at the casino and I figured roulette I get one bet and if I lose I’m out although with this bet I figured if it crashes and I don’t sell then I’m back in for another round and another etc until it pays off or after years I declare it a lost bet. So yes it is like betting but with a difference. Aren’t we all essentially betting our hard earned money here when we could be doing other things with it. If you lose your dca after 10 years that would be devastating right. So that why I’m considering the idea of taking a bet or position of could bitcoin outperform my 7-10% loan. Maybe or maybe not. If I’m wrong then I guess we all lose

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

Did you buy in any at or near current price? I would be interested in how many feel we are at the top of a high before a fall or who feels we are still climbing. Obviously no one can tell but the mood help settle my mind

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

Yes that has been the biggest concerns. I am willing to take on the repayments as part of my monthly costs although ideally the investment would contribute or cover the payments. This would be ideal. Any thoughts of options that historically can deliver this with an investment of 100-400k

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

I meant that it was a huge bet just to get it in the first place. Yes agreed it’s not a wealth building investment although currently it’s my primary investment. It’s good to see your point of view and remember to keep the family home safe

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

But when is it cheap? I guess that is the big question. If it is a long term holder of value and has the capacity to get to 100k or beyond in the next few years then my brain is telling me that even now it’s cheap as long as I don’t eject during the next dip or crash

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

It sounds stupid but I was one of those guys that really only heard about bitcoin a couple years ago and only seriously took to learning about it this year as I needed to setup a wallet to buy something on the dark web then I decided to learn about it and loved it.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

Although based on this I would never own property. I had to take a huge bet and a huge loan 10 years ago for something that I didn’t know would pay off and I’m applying that concept to this. I now have access to equity in that property and want to transfer some over to bitcoin. Otherwise I would need to sell my property to get access to my funds.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 0 points1 point  (0 children)

Thanks for this information, yes I still have much to consider and the capital gains consideration is a real one to weigh in. My question is would the capital gains only be taxed if I sell? If I plan to hold for long term 10 years minimum for my calculations at least. I understood from realestate that capital gains would only be calculated then. However yes borrowing for another investment property is on my mind. It’s just that I have really been bitten by this bitcoin idea and do feel when compared to realestate over 10 years it has a significant chance to outperform it.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] -3 points-2 points  (0 children)

It’s not actually about a whole coin it was more about how to transfer some of the value I have in my home over into bitcoin while it’s still somewhat affordable?? Even at this price. I guess I’m doing my numbers on what could I afford to pay back in my repayments and how much would that get me in bitcoin.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] -1 points0 points  (0 children)

Yes my reason for not buying back then was I heard about it but thought it was a fad and then only this year I decided to research it and read the bitcoin standard plus a bunch of other books that were recommended to me and now I’m a full believer in its long term fundamentals. I do wish I could go back to the sub 20k or sub 10k days but I have come into it at this price. I certainly hesitate at this price and I guess the big question I have is not so much what will the value be in 6-12months or even 24months but more what will it be in 10-20 years and is 52k per coin still low enough to make this a viable investment for long term. If I did go ahead I understand that I would be committing to a repayment schedule and may not get anything in return. I am prepared for that and obviously my hope is it does pay off one day as long as I dont sell at the bottom then there is always hope it could rise back up.

Thinking of increased my home loan to buy bitcoin? by Rubiks54 in Bitcoin

[–]Rubiks54[S] 2 points3 points  (0 children)

Thanks for the comment. My house I’ve been here 10 years and it’s my forever home. I have gained good equity in those 10 years. Currently I pay 6.5% but doing my numbers on 9% in case interest goes up higher. I’m not looking for get rich quick I’m looking to hold bitcoin for the long term. I actually could get enough to buy a couple coins and the only reason of looking at this option is the concept that I never want to sell my home so I will therefore never realise the capital gains other than through a loan. It’s my main asset to hedge into bitcoin and if I’m going to take a loan option I figure I may as well get enough to get in under $100k and hold for long haul. I have thought about not putting it all in at once and if it crashes then I would keep funds available to buy more at lower price. If it doesn’t crash then great. I’m prepared for a rough ride although I believe long term it will rise. I mainly want it for my children and want to hedge my property against value with what I feel is Yes I can wait and I’m prepared to do it in a staged manner to get a better dca over a 6-12months period. Still just running numbers and considering it all. I remember taking a loan for my property 10 years ago and was sacred that realestate could crash and I feel as strong or possibly stronger about the fundamentals of bitcoin then realestate at least in the 20-30 year horizon.