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The Myrical Group Wealth Series

How to get Bitcoin for FREE!

Bitcoin Mining with Other People’s Money

Bitcoin Mining PlatformShort term borrowing has always been considered “Bad Debt” because, traditionally it has been used as a stop-gap to fill an immediate cash flow shortfall and this was usually in the form of monthly expenses for most people. Before they knew it, they were caught in the debt trap with no way out until the day they died. This is the exact strategy of the powerful money lenders…they own you for life.

But what if you could find a strategy where the cash flow you generate is so rapid that it exceeds the monthly repayment on the loan. Now suddenly, the “Bad Debt” has the potential to become “Good Debt” if managed in an efficient and responsible way…after all, this would be a high risk strategy to be exercised with good caution.

So, along comes Bitcoin Mining generating returns of 14% to 20% per month. (Note that this will halve at the next event). This means that you can more than double your money every year.

Bitcoin Mining PlatformYou are already mining Bitcoin and receiving superlative returns but how can one enhance the returns even further! Well, now suddenly one can profit from the traditional “Bad Debt” Loans. Because investment is in Bitcoin mining, borrowing would be in Bitcoin if the strategy is to obviate currency risk. Note however, Bitcoins will be traded for Mining Power, so exposure to the BTC/GHS exchange is a real risk to take into account.

Given that the BTC/GHS exchange price remains constant, below is a simple example of profits that can be achieved. The interest rate is set rather high in this example to reflect that profits can be made at a high interest rate loan:

Borrowing

 

Investing

Loan

1 000.00

Investment

1 000.00

Interest Rate

60%pa

Return

120%pa

Term

12 Months

Term

12 Months

Repayment

112.83pm

Income

146.76pm

Total Payback

1 353.90

Total Capital

1 761.16

Profit

Percent

30%

Monthly

33.94pm

Total Profit

407.25

P2P Bitcoin LoansSo where does one borrow Bitcoin. There are a number of platforms that offer P2P Bitcoin lending. The most efficient found is BITJam where funding was achieved in 12 hours. Another slower but effective platform is BitBond, an auction site that takes a while but with much lower interest rates. Note that these are pools of individuals who, based on your profile, elect to fund you. Your credit score is determined a host of algorithms based on social media, shopping sites (eBay and the like), payment sites (PayPal), personal references and so forth.

The first step you after creating an account is to get your credit score up to maximum. Do not be tempted to apply for a loan before maximizing your credit score as the interest rate is determined by the credit score…so go through all the verifications required first; this may take a few days but be patient…it is well worth the wait.

When ready to apply for a loan, note that lenders, being individuals, are backing you with their own money and you will be grilled over your business plan. These individuals are well versed in the Bitcoin industry and many of them are averse to Bitcoin Mining so you want to provide sufficient evidence of alternative cash flows to service the loan outside of BTC mining. If you have other investment strategies, include these in your business plan e.g. Real Estate, Gold, Silver etc.

Essentially, you need to convince them that you have the means to repay the loan under any and all circumstances.

When applying for a loan, start off with a small amount; First timers asking large amounts causes jitters. You need to build a reputation first and this takes time. We initially listed a loan for ฿20 but after a few days, it became evident that this was too high, so we cancelled the application and relisted for a loan of ฿7 and received funding within 12 hours.

If you are not averse to currency risk, you can approach your banker or other sources locally for a personal loan or draw on your property bonds. Note though, that you will be exposed to both currency risk and BTC/GHS exchange risk if borrowing in your local currency.

Disclaimer

The author is not a financial advisor and is not registered with any institution required by law to act as such. The strategy alluded to in this article is based purely on personal experience and is not a recommendation of any sort. Any investment and/or borrowing strategy must be considered under proper due diligence which is the sole responsibility of the one considering such a strategy. There is no guarantee that the strategy herein will be beneficial and the author is not responsible for any losses that may occur as a result of following this strategy.

 
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