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RE: If you are not White or Asian American then it might actually be smart for you to use some of your financial aid to buy Bitcoin
I think that is a terrible idea. Investing can be done with leverage but leverage can be used correctly or incorrectly. Here is why the student loan idea is an incorrect use of leverage. Student loans cannot be discharged in bankruptcy. Not that you would believe you’d go bankrupt but it would be smarter to use leverage without such an onerous provision as that.
Now onto the use of leverage in investing in general. Leverage such as a loan to buy more bitcoin, stock, etc can accelerate the gains but will also accelerate any loses.
If the only loan you can get is a student loan and you are aware the college system is one big debt trap, why wouldn't you hedge your bets so you have a gamblers chance to escape it?
There are no gains and losses until you sell. If you buy a cryptocurrency at a cheap price and wait until it's higher than what you bought it for then what losses? Additionally you're gambling if you get a degree because it's not like you're guaranteed to land a high paying job. So why is it okay to gamble your money on an education but not elsewhere when the odds are actually no better?
On average the stock market goes up every year by around 7-10%. So just investing in stocks vs a higher education seems to favor stocks at least for some students but both are a gamble. It depends on what you have a degree in, it depends on what school you are graduating from, it depends on your race, and many other factors which go into the odds of you making a high income from your career.
Why is leverage for an education considered okay? Why is leverage for a house considered okay? But for cryptocurrency it's not okay?
My argument is this in bold letters:
If your goal is to get rich then you are better off in crypto than you are in college (particularly if you are black or hispanic). You probably will not get rich from a college degree but you'll go into just as much debt. I say this because it's not usually possible to get rich without taking big risks, and it's not likely the people who ask for an opportunity politely will have the opportunity handed to them, when has that happened?