don't you have monthly payments to pay back your loans? where does that fiat come from?
Discussion
no, I use Payment At Maturity. i don’t owe money until the end of the loan
I still don't understand how you pay back the loan. You would have spent all that fiat for living expenses.
So then you need to sell BTC in the end.
no, I refinance the loans. i’m buying BTC with all of my paychecks and BTC averages 30%-60% performance
Correct me if I am wrong, but this assumes that there will always be someone who expected to give you a loan on your btc.
And if you cannot refinance, you will have to sell, then tax hits.
So you go to strike, take a bitcoin backed loan, choose pay at maturity, and at some point (whenever you want?) just simply refinance the loan, so that you can kick the can of paying at maturity down the road?
Is this what you’re saying? 🧐
Is refinancing a feature that is built into strike already? I haven’t seen any screenshots of this or anything
So at the end of the 12 months you have the option to refinance ?
How does work?
Can you roll these loans over at the end of the term? If so, when is the interest and principal due?
Seems like the whole point is that yes, you can roll it over. But, as with any refinance it isn't guaranteed. Eventually, after several years of refinancing and a sufficient amount of compounding interest has accrued, probably during a market downturn when the collateral value gets a little too close to the balance due, that's when you'll be politely asked to pay the piper.
You sound like Mashinsky with his magical flywheel. So every year you refinance the old loan with a bigger new loan. You know the music won't stop because it is your own company lending you the money, and you have a huge stack of BTC to survive large drawdowns. For an average Joe with small BTC stack your strategy is very risky. You just shill your lending outfit to degen folks.
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