A Reddit user and member of the r/CryptoCurrency community claims that his stock price has risen by 25%, or $19,500, after taking out three personal loans totaling $59,000 in the past 18 months to buy Bitcoin (BTC).

According to the Reddit user, roughly named “Vaginosis-Psychosis,” they now own a total of 2.65 BTC, worth $80,400 at current prices, and are betting that BTC’s price will reach $100,000 by early 2025.

on June 30 postal On r/CryptoCurrency, users gave brief accounts of how they took the high-risk approach to earning BTC.

Posted on r/CryptoCurrency. Source: Reddit.

The first two loans will be disbursed in February and June 2022, totaling $15,000 and $20,000, respectively. Their fixed annual interest rates (APR) are 6% and 4.9%, respectively, with total monthly payments of $225 and $326.

The third loan, worth $24,000, was taken out in June of this year, with a fixed annual interest rate of 8% and monthly payments of $405.

So far, the Reddit user claims to have recently paid off a $15,000 loan in May and paid off a second loan of $3,500. From here, they plan to attack the most recent loan, which has the highest APR.

They claim the average price is $24,000 including interest paid and $22,264 excluding interest paid.

“It seems to me that the value and prestige of the U.S. dollar is rapidly decreasing. Therefore, I will take out loans to buy Bitcoin and pay back these loans with the inflated dollars I earn from work.”

“I don’t expect Bitcoin to trade in this range for 18 months. I expect BTC to be around $100,000 per coin by then, so I’d be bullish on short-term high APRs to achieve Bitcoin’s long-term exponential Price appreciation,” they added.

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As of this writing, the post has over 500 comments, some of which support the idea, while many others warn of the dangers of taking this approach.

“Lending for crypto investments sounds like a horror story to me,” wrote the 457-vote popular comment from user “middlemangv,” “NotAdoctor_but,” adding: “Because it is. It’s the best Survival bias, the OP is taking a calculated risk, but most don’t.”

Comments on posts. Source: Reddit.

The Reddit user provided further background, saying they are single, have no children, and earn about $60,000 a year from their jobs. They also stated that they have affordable rent and are happy to invest 25-30% of their income in BTC every month.

So the main risk in this scenario is basically that the price of bitcoin drops significantly and doesn’t recover in the next few years, or if they do keep bitcoin in a hot wallet, lose their holdings to a hack asset.

Maintaining employment is also critical to a sustained reduction in lending.

“Looks like you can afford to pay for it. Winning here can change your life. A ‘loss’, where BTC hasn’t topped $35,000 in over three years, just means another year of work. Worth the risk, Congratulations to the OP,” wrote user “Kakoyiannaros”.

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