Depending on your retirement timeline….#Bitcoin will be pristine collateral to lending institutions. There is reason blackrock, jp, goldman are entering space.
Rather than sell stack off, take loan against a percentage of it. Live off loan and refinance every halving, or invest loan in syndicated commercial re that yields 12-15 IRR. Rapid depreciate against cashflow….rinse repeat.
Sorry, but for me a 2-3x needed collateral for a loan is too much trust in the Bank and the government. I won't risk it.
That’s a fair argument, but remember Unchained Cap and others offer custodial lending thru multisig. You’re assuming tradfi models will be the only lending offered. This space will evolve quickly in the next bull phase.
Curious your alternative plan? drawdown and incur the tax and reduction in stack? I’m ok with that but like the idea of using a conservative % of total holdings in Bitcoin to generate retirement cashflow with a business of some sort.
I only know about Unchained and it's offering only to US citizens. Are there any other companies with multisig? Maybe for non-US citizens? I don't believe in taxing my Bitcoin spending, so I will resolve this cleverly. :)
Cant speak to OUS unfortunately but know that we collectively tend to underestimate innovation and the pace of discovery. There will be a “goldrush” of tools built on the hardest money known to man. Custodial lending will be just the beginning.
My timeline may not see hyperbitcoinizarion unless I’m grossly underestimating adoption curves and the collapse of fiats around the globe. So, tax strategy is one critical component to living outside of a W-2 job or running business day to day.
Someone asks if there is anything you will do in life with your bitcoin and you answer with glee that you look forward to emergence of a new sort of fiat standard under which you will continue ordinary life as a consoomer.
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Um no. We already did that and look where it got us. There's a popular quote about insanity you should look up.
Did what…Bitcoin lending? Blockfi/Celcius/others offered non-custodial lending platforms, as well as yield for depositors and like fiat banks, rehypothecated deposits engaged in all sorts of scammy activites and got wrecked.
The original question was how to retire on BTC and my suggestion was about how to fund a business or other cashflow positive endeavors by using your BTC as collateral in a multisig custodial lending setup where you appropriately manage risk. This was an alternative to just selling sats and paying capital gains, assuming you didnt have a boating accident.
Collateralized lending will remain a thing like it has since money was created…BTC is the most pristine collateral and lenders are realizing this. Technology advancements will enable you to cold store your stack, verify it 24-7-365 with your own node, and still use it as collateral against an interest bearing loan to fund cashflow producing ventures.
