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    Thoughts on leveraging student loans into BTC

    As a graduate student, I can borrow ~15k/semester in “living expenses.” Payments are deferred until graduation. The interest rate is 8-9% and can be paid back between a 10 and 25 year term.

    If you watched Michael Saylor’s speech at BTC Prague this year, he recommend leveraging a loan into bitcoin that was less than 10% APR and at least a 10 year term. So he would approve. What do y’all think?

    Thoughts on leveraging student loans into BTC
    byu/AggressiveCod2359 inBitcoin



    Posted by AggressiveCod2359

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    20 Comments

    1. xlvi_et_ii on

      It’s a question of risk.

      No returns are 100% guaranteed, would you be ok if you had to service the loan with additional borrowing during a bear market or loss of income, and are you ok with the extra stress that could come with using leverage?

      If the answer isn’t emphatically”yes” to any of those then it’s probably not worth it. 

    2. Own_Captain_3716 on

      I’m a big bitcoin believer but it’s not worth the risk. Leveraging debt could result in a very bad situation if BTC were to plummet in value. DCA a small amount weekly, this is the way.

    6. _lazzlo_ on

      While it is risky this is exactly what kids were doing in the 2013 bull run.

      It was one of the stories that first got my attention.

      I will say that it’s not 2013 and BTC isn’t moving the same way.
      If you are comfortable paying back the debt go for it.

    8. MosesHarman on

      Federal loan or private loan? Assuming private loan, way fewer options upon default and limited payment flexibility. If federal, possible forgiveness, possible income based repayment structure (which is not asset dependant). But if you default on federal loan, AWG, Treasury offsets, lost security clearance, and more if you don’t quickly fix it.

      Could work out if you can stomach the risks and the long timeline on the bet you are making. But you will hate those loans if BTC tanks!

    11. hooterdado on

      I think that’s actually a GENIUS idea. Take out the loan, 30 yr payback. Low interest. Interest only payments. You’d definitely be way better off than going to college in ten years.

    12. cosmicchitony on

      This is an extremely high-risk strategy that treats a volatile asset as a guaranteed win, which it is not. You are essentially gambling with debt that cannot be discharged through bankruptcy.

    18. m_genesis2002 on

      Early 2007 I took out a 10K loan AND used my wife’s student loans to invest in AAPL when the iPhone first came out.

      I could barely pay the P&I but knew iphones would blow up.

      By October 2007, the stock didn’t move like I thought it would. The price didn’t go up on pace with demand for the products. So I sold and bought a really hot stock.

      It was CROCS.

      A few days after I bought shares, the Great Recession hit. I basically lost most of it within a few days.

      It was frustrating to pay back a loan after all of it disappeared and I got nothing for it.

      Moral A: Nothing is a lock, and it was a dumb thing to do.

      Moral B: I was in my 20s and could make mistakes like that.

      Take the risk.

      My suggestion, if BTC has only one more leg up for Q4, sell your initial investment and pay the loan back. Whatever left, just let it ride, then DCA when you can.

      GL

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