The trader has thus far accumulated 2.65 BTC at an average purchase price significantly below the current market rate of roughly $30,000.
A Redditor and an active participant of the r/CryptoCurrency community purports to be 25% in profit, translating to $19,500, after procuring three personal loans amounting to a total of $59,000 to buy Bitcoin (BTC $30,682) over the preceding 18 months.
According to the provocatively named Redditor, r/Vaginosis-Psychosis, they now possess an aggregate of 2.65 BTC, which is valued at $80,400 at current market prices, and they’re staking big on BTC’s price soaring to $100,000 by early 2025.
In a June 30 post on r/CryptoCurrency, the user elucidated how they adopted this high-risk strategy to acquire BTC.
The initial two loans, amounting to $15,000 and $20,000, were obtained in February and June 2022, respectively. Each loan had a fixed annual percentage rate (APR) of 6% and 4.9% respectively, with monthly payments amounting to $225 and $326.
The third loan, amounting to $24,000, was procured in June 2023, with a fixed APR of 8% and monthly payments of $405.
So far, the Redditor asserts they have repaid the $15,000 loan in May, along with paying off $3,500 of the second loan. Their next target is the most recent loan, which bears the highest APR.
Including interest, they claim to have procured BTC at an average price of $24,000 or $22,264 excluding interest.
“As I see it, the US dollar is losing value and prestige rapidly. Hence, I’ll borrow loans to purchase Bitcoin and repay these loans with inflated dollars I earn from my job,” they explained.
“I don’t foresee Bitcoin trading at this range 18 months from now. I anticipate BTC to be around $100K per coin by then, so I’m willing to bear the short-term high APR for Bitcoin’s long-term exponential price appreciation,” they further noted.
The post garnered over 500 comments at the time of writing, with some users endorsing the idea, while others cautioned against the perils of such a strategy.
“The thought of taking a loan for crypto investment gives me the chills,” the top-rated comment from user r/middlemangv reads, with r/NotAdoctor_but adding: “It should. This is classic survivorship bias. The original poster took a calculated risk, something most won’t do.”
Providing additional context, the Redditor revealed they are single with no kids, earning roughly $60,000 annually from their job. They also have a manageable rental situation and are content to invest 25–30% of their monthly income into BTC.
The major risks in this case would predominantly surround the price of BTC plunging drastically and failing to rebound over the next few years, or the potential loss of their holdings to hacking if stored in a hot wallet.
Retaining their employment would be crucial to continue reducing the loans.
“Given your financial situation, you appear to be capable of handling this. A win here could be life-changing. A ‘loss’, for instance, if BTC doesn’t exceed $35K for the next three years, would merely mean an additional year of work. The risk seems worthwhile. Congratulations, OP,” opined user r/Kakoyiannaros.