No that's not the implication - you simply chose to read it that way.
What’s your Crypto Exit/Investment strategy?
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No that's not the implication - you simply chose to read it that way.
A home loan is debt like any other.
That doesn't change the simple point that is being made.
I know you think it does - but it doesn't.
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BreadKettle
Guest
It very clearly is the implication of this - "Would you remortgage your home to buy €200k worth of Bitcoin?"
How else would you read that? It's clearing trying to convey whether or not someone will gamble their home for Bitcoin, as if some sort of madness is about to take hold and we'll all end up homeless.
No BreadKettle, it wasn't.
The point is really very, very simple.
Investing while carrying a mortgage on a property is exactly the same thing as remortgaging that property for the purposes of making the same investment.
That should be really obvious.
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BreadKettle
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I understand completely the point, you don't need to repeat it.
You're in denial if you won't admit that the wording is very purposely overly dramatic. That should be really obvious.
TheBigShort
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Ok my bad, reading brendans post in full, (which was admittedly, advised by brendan) I instead responded in haste.
But its all whataboutery. The implied assumption is that money to buy bitcoin is being borrowed.
There is no sense of reality here, that if someone has €200k in their bank account, with a €200k outstanding mortgage on family home, that should someone spend their bank account on a Ferrari, a Monet, or bitcoin.
When in reality, if we apply general financial assumptions, the money I have in my bank account (despite my existing mortgage obligations) is actually my disposable income.
If that is not accepted, then every mortgage holder who buys a latte, goes to cinema, buys nice shoes, upgrades car, goes on holiday is also 're-mortgaging' their home.
In which case, no big deal, we all do it every day to lesser or greater degrees.
But its all whataboutery. The implied assumption is that money to buy bitcoin is being borrowed.
There is no sense of reality here, that if someone has €200k in their bank account, with a €200k outstanding mortgage on family home, that should someone spend their bank account on a Ferrari, a Monet, or bitcoin.
When in reality, if we apply general financial assumptions, the money I have in my bank account (despite my existing mortgage obligations) is actually my disposable income.
If that is not accepted, then every mortgage holder who buys a latte, goes to cinema, buys nice shoes, upgrades car, goes on holiday is also 're-mortgaging' their home.
In which case, no big deal, we all do it every day to lesser or greater degrees.
Whether you consider this bitcoin investment leveraged or not is irrelevant to me, since these allocated funds (for high risk investments) were never destined to pay off my mortgage and instead of squandering them on depreciating or worthless assets such as the latest I phone or 172 reg new Car, I have instead invested in what I consider to be an appreciating asset.
I think this is important , I was under the impression that most people had around 10 Bitcoins minimum so they are sitting on 200k worth of value.
Surely the minimum anyone can have is 1 Bitcoin? or can you buy less than 1 coin? If the above was someone's assets I wouldn't even bother trying to convince them to sell up that it's a bubble it's a tiny % of there portfolio and an amount they can easily speculate and afford to lose.
I think both myself and probably Brendan and others from reading posts probably wrongly assumed that most of the Bitcoin investors here had about 200k+ worth of Bitcoin , that was my thinking anyway that maybe most of you's had 5-10 Bitcoin with an odd person having 20+. If in fact people are only holding 5k worth of Bitcoin then go for it ride the wave and see how you get on.
What is dramatic about the word remortgage?
It just means taking out a new mortgage on a property that is already or was previously mortgaged.
That's no more dramatic than taking out a first mortgage on a property.
You say their is no grey area....
But for someone who has maxed out on their pension has a relatively small capital and interst mortgage on the best possible tracker tracker rate and is overpaying their mortgage payments as I do and is interested in allocating a small amount of monthly income to equities, have you not ever advised in the financial makeover threads that this is a reasonable strategy. Sorry I don’t have time to go through them, so I will just trust you will respond honestly.
D
Dan Murray
Guest
I am happy that Sarenco has entered the Bitcoin arena (ok, there may have been some tentative posts earlier by him!)
IMEO, Sarenco is one of AAM's brightest - not a false flattery, just a pretty obvious statement of fact.
This quote, however, is more symptomatic of AAM's founder - there are, for sure, elements of truth but it's just too black and white. Sarenco, himself, will appreciate more the most that risk takes many forms! Just my $0.02
TheBigShort
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What is dramatic about the word remortgage?
Nothing much, but remortgaging your home implies a sense of risk taking, the consequences of which, can go far beyond financial loss or gain.
Indeed you can buy / have as low as 0.00000001 btc. Divisible 100 million times or up to 8 decimal points.
There is talk to change the basic unit of account to micro-bitcoins, μBTC, called 'bits' as we are more used to dealing with large numbers than we are dealing with 0.00xx.
https://en.bitcoin.it/wiki/Units
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BreadKettle
Guest
He knows well, sure that is the whole point of Brendan wording it like that in the first place.
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BreadKettle
Guest
I reached a position of being able to pay off my mortgage some time ago from cryptocurrency (majority was not BTC). I do not immediately intend to do so. I have cashed out periodically after a pre-defined target was reached.
I am actually waiting for a large correction in BTC and will re-invest slowly as I try to judge the bottom, in the hopes of catching the next wave again.
I am actually waiting for a large correction in BTC and will re-invest slowly as I try to judge the bottom, in the hopes of catching the next wave again.
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2 friends
Both have identical jobs, pay and Pension.
Both have maxed out their pension, have a relatively small capital and interst mortgage on the best possible tracker tracker rate and are both overpaying their mortgage payments.
One allocates 5% of his salary to crypto investments, the other to gym membership.
Would you say to the guy with gym membership, I would think twice about that subscription as it will involve risky leveraging and you will see no financial return from your health conscious decision. Instead divert those funds to paying off your mortgage!!
One friend stands to loose financially from this decision the other might potentially gain something.
Hell I am going to tell the other half that dinner tonight in her favorite restaurant is called off because it involves too much financial leveraging and instead we should use the money to pay off the mortgage.
Where do you draw the line as to how you class the the allocation of your EXCESS funds?
Both have identical jobs, pay and Pension.
Both have maxed out their pension, have a relatively small capital and interst mortgage on the best possible tracker tracker rate and are both overpaying their mortgage payments.
One allocates 5% of his salary to crypto investments, the other to gym membership.
Would you say to the guy with gym membership, I would think twice about that subscription as it will involve risky leveraging and you will see no financial return from your health conscious decision. Instead divert those funds to paying off your mortgage!!
One friend stands to loose financially from this decision the other might potentially gain something.
Hell I am going to tell the other half that dinner tonight in her favorite restaurant is called off because it involves too much financial leveraging and instead we should use the money to pay off the mortgage.
Where do you draw the line as to how you class the the allocation of your EXCESS funds?
TheBigShort
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We have had;
The criminal underworld,
The dark web,
The North Koreans,
The family home,
Being robbed at gunpoint,
Losing your wallet...
....all as reasons not to buy bitcoin. There hasnt been one validated reason offered as to why it is apparently worthless and will return to zero.
The criminal underworld,
The dark web,
The North Koreans,
The family home,
Being robbed at gunpoint,
Losing your wallet...
....all as reasons not to buy bitcoin. There hasnt been one validated reason offered as to why it is apparently worthless and will return to zero.
D
Dan Murray
Guest
Lads,
Please be careful - reading this post is not without risk.
I can't figure how the Big Short missed the killer, mortal sin here? I'm beginning to wonder whether he even watched the bloody movie, let alone read the book.
The real enemy, as we all know now, is LEVERAGE
[And if leverage doesn't kill you, your coins will probably be hacked. Oh, if neither of those prove fatal, nay worry, as has been said many times, (without equivocation, definitely without equivocation) the coins are worth bugger all anyways!]