Taking on debt is a complex personal decision that should not be entered into without great care and financial consideration. With Bitcoin’s (BTC) recent return to all-time price highs, some moonstruck Bitcoiners have begun taking out bank loans to increase their position on the asset. While this may seem like a short road to riches for some, others view such financial moves as foolish, given the inherent volatility in the space.
In a Friday tweet from Peter McCormack, the What Bitcoin Did podcaster said he had purchased 2.55 Bitcoin using a $46,250 loan with the expectation he would have to pay back more than $57,000 within six years.
“In December 2026, if Bitcoin is at $22,669.35, I break even,” said McCormack. “I wanted to borrow a lot more. My cash flow can easily support the [$800] monthly repayments but this was the limit I could do with my bank after thinking about the idea for a couple of minutes.”
McCormack, a high-profile figure in the crypto space, has said he “can afford to lose” the money from the Bitcoin investment. Though he currently earns income from his podcast, his portfolio also took a hit in 2018 during the market downturn. At the time, he tweeted that he had “turned $32,000 into $1.2M and back to pretty much zero.”