1Bitcoiner.com

Oh yes, that’s a clickbait title indeed, it isn’t as bad as it sounds.

$20,000 loan

I took out a $20,000 loan for my home renovation at a 3.38% interest rate for 5 years, paying $390 monthly. The bank earned $3,380 in interest over this period. While I could have paid for the renovation with my savings, I opted for the loan to invest the $20,000 in Bitcoin, my “dry powder” for potential growth. With Bitcoin’s estimated Compound Annual Growth Rate (CAGR) of 20-30% per year, using my savings for renovation would mean missing out on potential returns of $25,000 if I don’t allocate my funds strategically.

$2000+ iphone purchase

I tend to be quite thrifty, waiting until my 5-year-old iPhone finally gave out before considering an upgrade. I’m a fan of Apple products for their user-friendly nature and durability. Instead of paying upfront, I opted for a 12-month installment plan at 0%, with a monthly payment of $166+. This decision allows me to maintain liquidity, using it as “dry powder” to invest in stacking Sats. By investing $2,000 in Bitcoin, I anticipate a potential gain of $500 within a year, compared to paying for the iPhone in full with no return on investment.

In conclusion, I view this type of debt positively—a manageable amount that I can handle. It’s important to be in debt that’s within your control and not excessive. Moreover, I prioritize investing this liquidity in assets with promising returns, avoiding low-yield options like Gold or Bonds.