as much as i love strike and jack mallers, i still think that putting up your btc for a 12% interest usd loan at 40% ltv is the dumbest thing you can ever do with your bitcoin. it’s also unclear to me what they do with the bitcoin and where it’s stored once it’s sent, which begs a clear (very clear) answer to attract even the dumbest slice of bitcoiners. imagine getting a usd loan with these terms at a cycle top. i was originally thinking these types of btc loans could accelerate draining exchange balances, but now i’m thinking the opposite.
Discussion
I just posted something similar about it. I like Jack very much (no homo) but this is such a dumb idea.
https://primal.net/e/nevent1qqswdkar49fa5cgefd29uqxpcypl805spzcmp8qs5707fryqrvqvf7qxgljrx
This is the forbidden fruit that you shouldn’t taste unless you really, really know what you are doing. It can easily put you in a spiral of debt.
Bitcoin is a pristine collateral but not for you pleb, it is for the holder of your BTC. Once hyperbitcoinisation is done and volatility is down we can rethink the approach.
And maybe using P2P platforms like hodlhodl...
While I agree it’s probably not the wisest use of your Bitcoin, this is clearly the direction the financialization of the asset is heading.
If you’ve got $2 million in Bitcoin in the 2030s and decide to post $400k as collateral to borrow $100k, you’re likely going to be just fine even if there’s a major drawdown.
That’s assuming, of course, you’ve also got other assets in place like a 401k, cash, equities, a home, etc.
This isn't for your everyday pleb (like most of us), at least for now.
while I agree this is not the moment for plebs to it , how to you propose people keep their bitcoin and still harness it to build additional wealth?
i think keeping your bitcoin off exchanges and being patient is the only real instrument plebs need.
be patient and ... then sell?
if you consider spending your bitcoin as a sell event, yes. its almost like we created the perfect money but now we dont wanna use it. but i get what you’re saying. as long as inflation and money printing exist, bitcoin will be a store of value first and a medium of exchange second.
tough for me to see a world in my lifetime where you trade 0.1 btc for a house or business, and then don't regret the trade 5-10 years later, but we shall see.
Regret the trade while comfortably living inside a house?
Or keep the bitcoin and sleep in the cold and rain for 10 years and maybe die of some disease?
If you’re looking at a house as an investment vehicle then absolutely.
If you’re looking at a home as a shelter of comfort and stability where you can raise your children and have a good life it changes the equation.
It also changes the equation as to where one sits in their stacking.
Imagine it’s 2030 and bitcoin is at a million. Someone stacking across the 2020s could easily find themselves in that situation where they’re not looking for strictly a monetary investment but a quality of life investment.
it's leverage, the market is full of it right now, Strategy is another example, not your key not your coin, if you want leverage, you give up your coin
Earn in fiat, save in #bitcoin. Leverage is a double edged sword and will not be for everyone. Just need to understand the risks before participating
fair enough!
Fair, but there are bitcoiners out there that can't get loans for things because they don't have assets banks will acknowledge as collateral, so my opinion is to just let the free market work and let people use the things that give them value.