So if bitcoin pumps hard enough, do y’all think it makes sense to sell some of your stack to pay off most or all of your fiat debt? Not just cars or credit cards but also mortgage.
I’m currently conflicted, but also a long ways from the price where I even need to make the decision 😅
FUCK NO. HOLD ON AS LONG AS POSSIBLE
I PAID OFF MY CREDIT CARDS AFTER GOING MORE THAN ALL IN, RIGHT AFTER PAYING THE DEBT THEY SHRUNK MY CREDIT LIMITS AND FUCKED MY SCORE OVER
The best way I heard it explained was: Bitcoin is forever money so you should only buy forever things with it. When I say forever things I mean like the pyramids of Egypt or the 2000 year old Roman aqueducts that are still in use today. Were any of the things you bought with a credit card going to last forever? The car certainly won’t.
For purposes of being reasonable let’s say that “forever” is the rest of one’s life. Is that the last home you will ever purchase? Then yes, paying off a mortgage now to stack more sats for the rest of your life would be pretty reasonable.
Ya I mean I actually don’t have credit card debt, was just using that as an example. I do like your point on the house, though. Our goal is to never move again, so that may be a good framework to work off of.
My thought is that you can not truly exit fiat while having debt. You can make the argument you’re “shorting the dollar”, but I have a strong desire to have 0 debt, so I’m not obligated to earn a certain amount every year. I’d rather live on a bitcoin standard where everything gets cheaper and I’m only paying for day to day expenses.
I get it. I became debt free before I found bitcoin. I may have a different opinion if I were in your position. Regardless, the financially independent lifestyle doesn’t change much after you become debt free. Instead of paying bills you put the same money into investments.
Sound advice, make sure you have a Fiat emergency savings fund as well.
Bitcoin is a good assets but I would say focus on tackling debt because debt will destroy faster than anything.
That being said depends, you could do a collateralized loan instead but that is also risky.
Would recommend asking a financial advisor 👍.
