Is it ok to use "bad words" in a positive/neutral way? (warning: post contains profanity)

Deema • nerd
Do you think it's a good or bad thing when people apply otherwise insulting words to themselves with positive intent? 
   
That is, does it make the word lose it's negative power? Or, is it wrong or degrading to use these at all?
   
Some examples include a woman calling herself a b****, an African-American referring to her/himself by the n-word, an environmentalist calling her/himself a tree-hugger, or a feminist calling her/himself a killjoy.
  
I don't know anything scholarly about this topic. I was just wondering, because I saw one girl call her friend a b**** but I think it was intended in a joking/positive manner. I call myself a tree-hugger lightheartedly, but I think the word was originally meant to insult people who care about the environment.

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