An investor who borrowed $150,000 to buy Bitcoin will undergo a three-year update. But everyone wants to know – how he gets a 0% loan?
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Three years ago, a Reddit user made a high-risk decision: They borrowed $150,000 to buy Bitcoin using personal loans and 0% APR credit card balance transfer.
As of June 4, they said investment is paying off significantly.
Investors say they now own 4.75 bitcoins with an average price of $35,000. With Bitcoin trading around $105,000 at the time of update, its holdings are approximately $498,750. After considering the $15,000 interest paid and the original $150,000 loan, they sat after unrealized gains exceeding $330,000.
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“I have no plans to sell anything. Just buy and hold. Retire early.” The remaining debt is now about $40,000 from a credit card balance transfer, carrying 0% interest over the next six to twelve months.
They recently admitted that despite the price exceeding $100,000, they recently made another $25,000 balance transfer to purchase an additional 0.25 BTC despite the previous promise not to borrow more, despite the previous promise of not lending more. “I only have a balance of $20,000, but I can’t resist it at all.”
When asked why they not only use income to invest slowly, the investor explained: “If I just did this, I wouldn’t be able to buy as much bitcoin as I did at the lowest price.”
They describe their approach as “reverse dollar cost average.” When the BTC trades between $16,000 and $35,000, they don’t buy a little over time, but pay monthly installments.
For critics who say borrowing money to invest are reckless, they replied: “Borrowing loans can buy assets as long as you have the ability to afford responsible debts.
They believe that inflationary U.S. fiscal policy will continue to devalue the dollar. Their paper: Borrow USD and buy appreciation assets like Bitcoin. “The strategy is basically a speculative attack on the dollar,” they said.
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