Put part of 401k into Bitcoin
I’m looking for opinions on taking a loan out on my 401k and putting it into Bitcoin. The money will be untaxed, I will have to make a biweekly payment on the money for whatever term loan I decide I want. I have to pay 8.5 percent interest, but all the interest goes back into my 401k. The only downfall is if the market goes up that portion I pull out I lose gains on. I’m allowed to pull out up to 50k.
I know everybody always says don’t take a loan to buy Bitcoin, but I feel like this route isn’t a horrible idea? Im 24 and I’ve had a really good job as an electrician since I’ve been 19. If Bitcoin went to 0 (which I can’t imagine) it wouldn’t effect my style of living. I’ve been trying to accumulate as much Bitcoin as I can afford while the prices are what I feel are good, and Ide just like to secure some more at this price point as I don’t currently have extra money to dump into it besides my extra money from my paychecks.
Let me know what you think, and if it’s a terrible idea or a reasonable gamble at my age.