In a very interesting development, a man identified by his handle in an online community had on the 11th of May 2017 made a very remarkable move by purchasing $325,000 worth of Bitcoin with hopes that the price will hit the $10,000 price mark predicted by cryptocurrency market experts.
The man, who goes by the online alias gingerbreadfutters and said to have terminal disease, recently purchased the flagship digital currency as it achieved an all-time high of $1700.
Bitcoin price has increased significantly since then, reaching $1,866 as global average across major markets on May 11. However, users in the online community wherein gingerbreadfutters made his announcement harshly criticized his decision to all in on Bitcoin after they discovered that he obtained the capital through a loan.
To be specific, gingerbreadfutters acquired an equity loan of $325,239 on his house in order to purchase 191 Bitcoins. He stated;
“I decided to make my newest lunge using what equity I have accrued on my estate over the past 10 years since 2008 financial crisis. If Bitcoin reaches the 10k mark – which I see as a distinct possibility, or I would not have taken such a risk – I plan on moving to the West Coast and getting away from all the angry people here where I reside”
Investment or gambling on life savings?
An equity loan is a type of loan in which the equity of the borrower’s home is used as collateral. In other words, gingerbreadfutters is gambling on his life savings that is his real estate and betting yet another $325,000 obtained by using his life savings on collateral to make a mid-term profit on Bitcoin.
More to that, gingerbreadfutters told his online community that he plans to sell all of his Bitcoins once Bitcoin price hits $10,000 and purchase a new real estate on the West coast.
However, the online community criticized gingerbreadfutters’ extreme risky and frankly foolish investment strategy. Investors should always prevent from initiating risky investments for short term and mid-term profit because there are potential situations wherein investors may be in urgent need of capital but their assets or money are locked up.
So what are thoughts guys? Will you go all in for Bitcoin this year? Let’s hear them in the comments.
Culled from: bitcoin.info
I have been in the Cryptocurrency ecosystem for about three years. My passion for this niche of financial tech space inspires me to share with you all I can in the world of Cryptocurrency, Blockchain and financial technology.