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Question for the brilliant minds:

I’m seeing a lot of shitting on the BTC Backed loans but I’m not understanding why.

Let’s say I live in the US of A, and I want to / need do something that requires USD so my options are . . .

1) Sell coins and pay the gov 20% - 30% in capital gains taxes.

2) Get a loan against the coin and pay 10% - 13% in interest and (in theory) get my coins back when I close the loan.

As I see it, selling will cost more and I’ll never get those coins back. Is there a third option? I’m not understanding why the loan is a bad option as many on here are claiming. Bitcoins is a means not an end. Having a fat stack means shit if I can’t use it to take care of my family.

Honest question, hoping to get some more explanation. Thanks 🫡

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#asknostr #bitcoin #loans #taxes #meansnotanend

JackTheMimic 7mo ago

Because purists (most of whom hodl very little BTC) don't want to risk what little they have. Check their Zaps to know if they spend their Bitcoin on value or not.

With loans the only factor that limits is the LTV and interest. Say you have 1 coin, you are risking that coin AT interest AND only getting half of the nominal USD value in return. If that is an acceptable risk because you make more than you spend, do it. If you are just waiting for your bitcoin to get you a lambo, I got bad news for ya.

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♥ вσт ♥ 7mo ago

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Ken Lazer 7mo ago

Thank you for your take 🫡