Debt - Plague or Panacea?
I had a conversation on the phone with my father a few days ago and among many other topics, I brought up the crypto market discussion, as usual. He knows about BTC, from yours truly, ever since I first purchased my first cryptos, but never owned any. He hardly uses his laptop and smartphone so no thought of owning any crypto... and he doesn't speak English either so it would be a pain to even handle such things.
After I shared with him about the recent run ups in the crypto markets I mentioned to him that at this point if I were an employee and having a decent wage I would take all the money from the bank I could to buy crypto with. I never had any credit, neither he had, we're not the types living on debt, but at this point, if I'd have a certain degree of financial security I would definitely take a credit and buy crypto. 100%.
Unfortunately there's a lot of uncertainty in the world right now and many folks are actually unemployed, so who's taking money from the bank to buy BTC or other cryptos right now... I only read once on twitter about Peter McKormack who took some $64,000 credit to buy BTC. I guess that's one reason why we have this crisis, so the wealth transfer can happen smooth, Bitcoin being one of the assets that are part of this wealth transfer this time.
I can't take any credit that's for sure, as I'm unemployed for more than three years, and I somehow regret not getting back to work in 2019, at least, as I could have done this move that I am writing about now. Regrets are too late and I'll have to appreciate what I own and make the most of my investment. Coming from a developing country, that is developing ever since I can remember, and being aware of the poor financial education my people has I'm amazed to see on how much bullshit these people are spending their bank borrowed money.
To some extent I consider buying a house or a piece of land as quite legit for a bank credit, or even opening a businesses, but other than those it's useless debt, especially what I see for some many conational of mine, from the ones living inland and the many who work and live in other more profitable European countries. Getting in debt for liabilities is the last thing I'd do and probably that's why I never had credits.
I never had any profitable reason to invest bank given debt money either, but at this point crypto seems too legit to ignore for a credit. I mean instead of buying expensive cars that you have to pay leasing or credits for years and years, that are not even as reliable as the old ones, or expensive furniture, gadgets and whatever, I'd definitely get a credit to buy crypto.
At this point I believe that paying back that credit, whatever sum you may think of, and cashing in some nice profit in less than a year is highly probable. Yes, the bubble looks like it's going to burst when looking at the charts of BTC, while some altcoins are still a bargain imo, but we have to take in consideration that the halving occurred just about eight months ago and it takes BTC more than a year to peak after the halving. There's still time to be profitable on this one I'd say.
Another important aspect worth taking into consideration is who is buying BTC at this point... Well, I guess most of you know by now that it's large financial institutions that are doing that and those are not in for a quick buck, soon there will be pension funds, banks and so on. The average worker is not much into crypto at this point, he's more into buying second hand Mercedeses that will make him look cool, expensive smartphones, clothes he'll probably wear a few times over a couple of years and so on...
Stuff that don't make money is what the dumb money are taking credits for. I was once hearing Robert Kiyosaki talking debt and wasn't really getting his point, but I now do. Stuff that make you more money are definitely worthy getting in debt for, liabilities not, it's that simple. However most of the bank credit clients are not playing that simple game, and are kept in poverty and continual debt for things they don't need to impress people they don't really care about, and pay for all of those with the money they don't really have...
Anyway, hope you enjoy this ride, hope you're mentally prepared for a potential heart breaking correction ahead and the continuation of the upward movement that's to come. Have a great Friday and stay healthy and happy!
Thanks for attention, Adrian
Posted Using LeoFinance Beta
