Depending on your country, what about taxes?
If you report under a negative tax regime, that will definitely take a dent off your profit.
If you continue selling bitcoin to pay off the loan, won't you end up with less and less bitcoin in the end..? I know you will still have more than before you took on the loan, but the same can be said for just buying bitcoin with dollars you already own.
You are 100% guaranteed to see your loan stack get reduced from its initial size, yes. But any amount you have left after paying the loan is benefit.
There is risk involved, more risk than just buying with dollars already owned. Whether it is worth the risk is up to the individual, but generally I'd advise against it as most people will not think it through as well as you seem to be doing.
Agreed, anyone should give plenty of thinking to something like this, but people often don't. To that matter, people even do it with mortgages, as history has proven time and again. It always blows my mind when someone close to me gets into a mortagage without having ran a single spreadsheet to analyze things. So yes, I concur that this idea is not fit for most.
Another thing depending on country you could have fiat in an offset account that reduces interest while it sits waiting to be turned to btc
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