Nostr Web Client

You don’t have to take a loan against your bitcoin to get a loan. And when your sats get liquidated to cover a loan you incur a taxable event. Playing with fire.

Liberty Farmer 7mo ago 💬 2

I don't disagree, but one doesn't need to get liquidated unless they a)don't pay back the cash, or b) doesn't add more bitcoin

And remember, they would only liquidated on an amount. If the price drops and an event is triggered, it's not like all the collateral is now gone, only those amounts needed for the LTv to come back in line.

It's a product for whales, large holders, and those who have plenty to re add margin. No reason to sell and pay the taxes for them for a new business, commercial property or home, a kids college costs with easy terms, and so forth.

It isn't for 99% of bitcoiners likely.

People also need to realize that while drops happen, the last short term huge price drop was March 2020, covid. It's not like they happen every few weeks.

People have been acting like there are 40-50% drops all the time.

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Discussion

corndalorian 7mo ago

My fear is that 99% of the customers using it are going to be plebs attempting to larp as “mini Saylors” and then they get rekt 😂

Liberty Farmer 7mo ago 💬 2

Ha. Could be.

With current limits of 75k though. That's a few hundred k in Bitcoin. Now, if they drop to 25k, 10k, 1k.... Totally different users. Yikes.

I don't see myself ever using it, but I absolutely see the value in being able to access massive amounts of dollars in 1 business day. No credit checks, underwriting, and all the other nonsense. Just post Bitcoin, get dollars. That's huge, especially in non US markets.

I've done a ton of house flipping, rentals and wholesaling in my day, short term hard money is not cheap. These days you are talking 12-20% for a 90-180 day loan.

Enter Strike... Faster, easier, there if you need or want it.

I like options in life. A heloc is a nightmare. Personal loans the same.

For whatever my opinion is worth. 😂

corndalorian 7mo ago

Since the conference they dropped the minimum loan to $10K. Gotta put up at least 2x in sats to begin with for collateral.

Liberty Farmer 7mo ago

Those are decent numbers. Anything less than 10k could have issues. 50% margin is decent.

But honestly, I could care less of some gets rekt on a loan and blows it. Not my concern.