I paid the first installment of Rs. 200,000 loan I took to be returned in three months, to buy Bitcoin with it and see if I make profit or loss at the end of three months. The total amount to be returned is 209069, roughly 5% more. This is part 2, please read part 1 before going forward.
As a crypto educator, influencer, media guy my responsibility it to try and educate my viewers/readers to not invest in cryptocurrencies with money they cannot afford to lose. To demonstrate that how bad it can get, I personally took a short term loan to buy Bitcoin and show you in what circumstances, can you actually profit from it?
I paid the first installment of the loan on July 9, 2020 at a little loss. But the current price rally has put me in profit.
I borrowed the money from credit card on the day which was the last day of payment for the previous bill, hence the first EMI had to be paid on or before July 11, 2020. Similarly the last installment can be paid until September 11, 2020.
First of the three installments paid
While I have to pay only 68116.30 as EMI, after paying all three I should still have enough BTC to get Rs. 4720 in hand which is the processing fee for this loan.
|BTC Balance Left||0.1814|
|Installment Payment Date||July 09, 2020|
|Current BTC Breakeven Price||Rs. 777026 (includes Processing Fee Expense)|
It appears that I may have lost value when I paid the first installment of the loan on July 09, 2020. However the recent rally has brought the BTC price in India to the level that I need it to be to simply break even.
Read Part three to know what happened.
Bitcoin Purchase Details
I purchased BTC from an Indian exchange by depositing Rs. 200000 into the exchange and buying BTC with it. I moved the BTC to my private wallet and I will withdraw the funds needed each month to repay the loan.
|Fees for transfer||0.00018251|
|Total BTC Balance on June 21, 2020||0.27641673|
|BTC Purchase Price (adjusted with fees)||~Rs. 723500|
I want to reiterate that never invest money in crypto that you cannot afford to lose. While this might be going well for me, it can turn sour in the next part. So be careful and to discuss this, you can join me on our telegram group.
Disclaimer: The article is meant for education and understanding of investment and concepts of Crypto assets. It is not an investment advise. Any funds invested are by the author. Coin Crunch will not be held responsible for any losses.