2.5 Year Update: I took out $125,000 in Personal Loans & Balance Transfers to Buy Crypto

tl;dr: Over the course of the past 2.5 years, I took out ~$125,000 in personal loans and credit card balance transfer loans to purchase 4.5 Bitcoin. I’ve paid ~$8,000 in interest so far and currently have a ~$45,000 remaining balance.

The average price I paid is ~$29,550 per Bitcoin which brings my cost basis to ~$133,000. The current value of the Bitcoin as of today, August 16th, is ~$265,000 which comes to a 99% profit or ~$132,500 in dollar terms.

I have no plans to sell any of it. Just buy and hold. I service the debt with earned income from my job. I can easily afford the payments. I should have it all paid off by summer of 2025… so long as I don’t take out even more loans to buy more Bitcoin!

I’ve made updates every 6 months. Feel free to view my post history to learn more about my strategy.

Two of the most Frequently Asked Questions I get.

Why take out loans when I could just buy Bitcoin from earned income?

I do that as well, but if I only did that, then I would not have been able to buy nearly as much Bitcoin as I did at the lowest prices. Back in 2022, I knew we were in a bear market. I also knew that it wouldn’t last more than a year or two.

So think of it like a reverse DCA. I pay the loans each month instead of DCA. This allowed me to buy a lot more Bitcoin than I otherwise would have been able to buy. I can easily afford the monthly payments to service the debt.

2. This is too risky. You’re insane. You’re gambling. Never take out loans to buy Bitcoin!

Not at all… I have a thesis an a strategy!

My thesis is simple: due to reckless fiscal and monetary policy (money printing) by our government, the US dollar will continue to depreciate in value, i.e. inflation.

My strategy: take out loans in USD and buy hard assets like BTC which will appreciate in value against the USD.

The strategy is basically a speculative attack on the US dollar. Wall Street traders do the same thing all the time. Have you hear of the Yen Carry Trade? I’m doing the same thing except with USD and BTC.

Taking out loans to buy assets is fine, so long as you can afford to service them. Just don’t take out loans to buy liabilities!!!

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