sounds like strike will have a loan product sometime between here and May...
curious to see what interest rates are like
Discussion
I’d be surprised if they’re more competitive than a HELOC rate. I’m very skeptical of loaning against my coin but hopeful.
Fair, more curious than anything at this point.
Looks like there are a lot of these products coming to market in the next year
Yes, many companies are coming out with this offering.
I’m speculating, but I can see it leading to a market correction. I’m weary of people using these products to leverage themselves when the bull market kicks in and they start to FOMO.
I remember him saying on his Monday livestream that the rates may go down over time as they negotiate with dealers, but they’re a just trying to get it shipped.
After he said that I’m bracing for 8-10%
Agreed, maybe it goes down with the fed rate too?
Yeah, probably. If I had to guess it’s a locked in 1 year loan, so the rate is probably closely tied to Fed discount just like the 1Y bond. Ideally, I’d just want a variable rate line or credit with some premium to those current fed rates. I like not having fixed payments so long as it’s severely overcollateralized
I’m hopeful and will probably use it if it’s decently priced. I trust Jack to make the best product he can
I've come to think the interest rate doesn't really matter, it's more about what your liquidation price is to make sure the corn doesn't go missing, loans can keep getting rolled over so no need to pay them and as Bitcoin goes up over time you can take out more money without adding more collateral until one day you have taken out more then you put in