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When a Reddit user recently inherited $70,000 and asked whether to pay off debt or invest in Bitcoin, the responses revealed a fascinating split in modern financial thinking. The debate highlights a growing dilemma facing many Americans: how to balance traditional debt management with the allure of cryptocurrency’s potential returns.

The original poster’s situation isn’t unique. With Bitcoin trading near all-time highs and credit card debt hitting record levels nationwide, many investors are grappling with similar decisions. The Reddit thread became a battleground between two financial philosophies: conservative debt reduction versus aggressive cryptocurrency investment.

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“Credit card debt is toxic,” wrote one highly-upvoted commenter, echoing traditional financial wisdom. The math supports this view—with average credit card rates hovering around 21%, paying off high-interest debt provides an immediate, guaranteed return that most investments struggle to match.

Several experienced investors proposed a nuanced approach based on interest rate thresholds. The consensus emerged around a 4.5% benchmark, matching current high-yield savings account rates. Debt above this threshold gets priority treatment, while lower-rate obligations can potentially wait.

“Pay off anything above 8% immediately,” suggested one user who claimed to have managed a similar $100,000 inheritance successfully. “I reduced my monthly bills by $700 and freed up cash flow for future investments.”

This strategy acknowledges that not all debt is created equal. Federal student loans at 3-4% might remain while credit cards at 20%+ get eliminated immediately.

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Bitcoin advocates in the thread weren’t deterred by debt concerns. They pointed to Bitcoin’s historical performance and argued for significant allocations ranging from $25,000 to $50,000 of the inheritance.

“Bitcoin’s annual return rate could exceed 20% for the foreseeable future,” one proponent argued, “and it will definitely outperform 8% APY over a 4-5 year period.”