Replying to Avatar Bill Cypher

When bitcoin was under 20k right after The FTX crash was the best time for you to take a bitcoin backed loan.

When bitcoin is within spitting distance of ATH in the 3rd green year in a row is the worst time to take a bitcoin backed loan. (3 green 1 red, red is traditionally ~ -80%)

Your odds of getting liquidated on a collateral that is down less than 5% from ATH are much higher than collateral that is down 80% from ATH already. (For sound collateral only, don't try this with shitcoins like ETH or USD)

TLDR, be fearful when others are greedy and greedy when others are fearful applies to getting bitcoin loans too.

So why is everyone hyping loans now? They get to confiscate your bitcoin in a liquidation next year.
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StellarStoic 7mo ago

Timing when is the best time to take bitcoin backed loan is no different then timing the markets.

I'm highly against any of that.

I lost some so you doesn't have to.

I hope someone will take my words seriously.

If fiat is going down in value. Why not taking a loan in fiat. Negotiate the best rates and in the end if inflation goes in your favor, you'll repay less then you borrow 😄

Stay Humble Stack Sats🧘

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Bill Cypher 7mo ago

Fiat loans are totally the way. The point of this post was that the people trying to sell you bitcoin loans aren't doing that to collect fiat interest. They're planning on you getting liquidated.

Unless you have shit credit you can probably get the same rates in fiat land unsecured as bitcoin loans want with your stack on the line.