Borrowing Fiat Money to Buy Bitcoin ... Good or Bad Idea?
Michael J. Saylor has become an example for many in the Bitcoin world. He follows a DCA strategy of buying Bitcoin no matter what whenever he gets the chance with MicroStrategy. Even though Bitcoin is currently in a Bear Market, he continues to have confidence in his strategy and is betting that his strategy will be a winner in the future.
Once you understand the why of Bitcoin, it becomes obvious that you should accumulate as much BTC as possible. Michael J. Saylor understands this, as do you and I. If you are reading this article, I assume that you have already figured it out or are in the process of doing so. If not, please tell me why you still doubt Bitcoin in the comments.
If you've been following Michael J. Saylor's journey into the world of Bitcoin, you may have noticed that he used the leverage of credit to accumulate more BTC. At the time, many people wondered about the wisdom of such a strategy.
While poking around the internet, I had already noticed that some people were already wondering about this strategy long before Michael J. Saylor became a Bitcoiner. Indeed, in November 2017, I could find a trace of people on Reddit pondering borrowing US dollars to buy more BTC by betting that the price of Bitcoin would rise sharply in the future.
So I thought it would be interesting to study the relevance of such a strategy in more depth. Please note that this is only a case study and not investment advice. Everyone is free to make their own choices by integrating this study into their thinking.
Keep reading with a 7-day free trial
Subscribe to In Bitcoin We Trust Newsletter to keep reading this post and get 7 days of free access to the full post archives.