Debt Settlement · 3 min read
Bitcoin or Gold? How ₹10 Lakh Vanished in the Debt Trap
Borrowing money to invest in Bitcoin left many Indians trapped in debt, while gold delivered steady returns. Learn why using loans for risky investments is dangerous, how to avoid debt traps, and which safer strategies can protect your wealth.
In 2021, thousands of Indians jumped on the crypto wave, hoping to become crorepatis overnight. Many even took personal loans and credit card debt to invest in Bitcoin.
But reality hit hard. Someone who invested ₹10 lakh in Bitcoin back then would now be left with just ₹6.5 lakh. The market crashed, portfolios shrank, and yet the EMIs kept running.
Meanwhile, if that same ₹10 lakh had gone into gold, the amount would have grown to nearly ₹12.5 lakh. It may not sound glamorous, but it’s slow, steady, and safe.
The Double Burden of Borrowed Investments
Investing with your own savings is one thing. But when you use borrowed money — through loans or credit cards — the risk multiplies.
Here’s why:
Market Loss + Loan Repayment: Even if your investment loses value, you still owe EMIs at high interest rates.
Debt Trap: When you’re paying off a loan with no returns, you’re effectively stuck in financial quicksand.
Mental Stress: Watching both your portfolio and your bank balance sink creates a cycle of fear and anxiety.
This is the harsh truth of using loans to gamble on high-risk assets like Bitcoin.
Bitcoin vs Gold: The Safer Bet
Let’s be clear — Bitcoin has given massive returns in the past, but it’s also highly volatile. There’s no guarantee of safety.
Gold, on the other hand, has always been the go-to safe haven. Across generations, it has delivered steady appreciation and protected wealth during economic crises.
For example:
Bitcoin investment (2021): ₹10 lakh → ₹6.5 lakh
Gold investment (2021): ₹10 lakh → ₹12.5 lakh
One wiped out capital. The other created security.
What Should You Do Instead?
If you’re serious about wealth creation, avoid borrowing to invest. Instead, follow these smarter steps:
Invest Only From Savings
Never risk loan money in volatile assets. Put aside a portion of your income and invest from that.Build an Emergency Fund
Always keep at least 6 months of expenses in liquid form. This protects you from panic borrowing when things go wrong.Choose Stable Options
Explore SIPs, gold ETFs, or government bonds for long-term growth. They may not make you rich overnight, but they keep your money safe.
Conclusion
At the end of the day, Bitcoin bina guarantee ka risk hai, gold safe return ka promise.
Investing isn’t about chasing hype, it’s about securing your future. If you truly want to build wealth, focus on using savings, plan ahead, and choose options that won’t keep you awake at night.
Remember: Quick gains can vanish in a crash, but steady planning creates lasting freedom.
Must Read: https://www.lawyerpanel.org/blog/whatsapp-recovery-legal-rights-india/
