I have a negative fiat net worth, get paid in bitcoin, save in bitcoin, pay bills, and never have to sell bitcoin or incur a taxable event with my bitcoin-backed loans.
I live my life on bitcoin and my life gets half off every 1-2 years on average (1.44 years with 50% BTC CAGR to be exact).
Might need to make a video tutorial on this if people don't get it. It is magical.
A video would be cool for people
Any ETA you can share on loans availability for TN?
"Yo, fam! š¤ Any word on when them TN loans gonna drop? We tryna make moves over here! šø #LoanWatch"
Oh wow this is dope
strike doesnāt re-hypothecate, but you give custody of the coins to NYdig so they can re-hypothecate.
is that right?
no, thatās wrong
Can you please explain what does happen.
As I think itās important for people to be aware they are actually giving up custody. I donāt think that is very clear to the uninitiated.
the bitcoin sits in an address with us + the partner.
is it not clear you are giving up custody to get a loan? there is no such thing, otherwise. thatās what a collateralized loan is, right?
Based on experience of speaking to people who are new. Yes. Itās not always clear to a lot of people. Might seem to silly to you and me. But we have experience on the magic internet money. For many new less tech savvy. It really does seem like magic. And we find ourselves explaining a lot of things we might take for granted as logical. And they really are not clear on the risk model. No silly questions or assumptions that everyone understands it. We meet people where they are. And patiently walk them through it.
ah, I understand. yes, one should always do their own research.
all of this is documented in our FAQs and we have on-call/24-7 support for those that have questions š
A tutorial would be great.
Me with my five dollars in bitcoin:
Strike is a great great tool. Just promise that if the government goes rouge you wonāt provide detailed information of your bitcoiner clients/users. ššš
Thatās not a choice heāll have. All of these centralized apps are a honey pot for dems when they take back over in 2026 and 2028.
Strike IS a great tool, I DCA with it every week, day, and hour! But, don't leave life changing money on there without a reason... Buy, use as needed fo monthly expenses, and hopefully every time your amount hits a certain (self set) threshold you sweep it to cold storage.
I don't worry about my sats on Strike... Maybe once a month or so, I sweep my balance off, so if I WAS to get my account frozen or compromised it is only the last 1-2M sats I might lose/get frozen. That is where I am comfortable... Your tolerance may be more or less.
I modeled this strategy (minus the lending component) backwards to 1/1/2021. Very under evangelized how powerful these tools are youāve given us.
when fiat go to 0 bitcoin go to 0
when fiat go to 0 my coin still = 1 egg
eat your $hit and die little boy.
1 BTC = 1 BTC
Iāve just started working on a parametric model for Bitcoin-backed lending.
The goal is to define key variables: if you want to withdraw an āXā value each year, how much āYā Bitcoin would be required to refinance that annuallyābased on dynamic parameters.
At first glance, it looks sustainable. After 20 years, youād only need to part with a fraction of the Bitcoin you lived off.
Iāll share the details once Iāve finalized and double-checked the key numbers.
The assumptions Iām using:
ā 7% annual USD inflation
ā LTV increasing from 40% to 65%
ā Bitcoin interest rates declining from 11% to 3.5% by 2045
What do you think, @jackmallers?
And when you decide to get off the debt train In 20 years when Bitcoin stops rising? A significant inflation effect, you have to sell your BTC some day.
WTF
I would love a deep explanation of how you see this lending product. I looked into it and it just seems like you end up with ballooning debt which turns me off immediately
The Capital expands at a faster rate
you have a billion dollars worth of bitcoin. that's why it makes sense.
IF I CAN DO IT SO CAN YOUā¦ASK ME HOW ITS GOING IN A COUPLE WEEKS OR MONTHS?? I JUST SUBMITTED MY PAPERWORK TO MY COMPANY TO DEPOSIT 100% AT STRIKE :)
Can you help a rifle company based in Oregon to accept payments in Bitcoin?
Hey. Would be happy to share what I know and talk about options that would fit your needs.
That would be awesome! Thank you so much!
I'd love a tutorial. But its the fiat side that I don't get. The bitcoin side is easy.
Video tutorial! šš
I don't understand this! If you keep buying bitcoin and increasing your loan then won't you eventually have to pay your loan back and won't this happen at the worst time? I'm thinking that the this could hurt if someone can't afford a big drop in price.
Some me the cheat sheet kid ā“ļøšŖ½
don't you have monthly payments to pay back your loans? where does that fiat come from?
no, I use Payment At Maturity. i donāt 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. iām 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 youāre saying? š§
Is refinancing a feature that is built into strike already? I havenāt 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.
Testing zaps for this noteā¦ we made six attempts toā”zap this note, at ln@swapmarket.online, over a period of 32 minutes. In each case, we found that your lightning address service or server did not respond correctly. If you wanted to fix this... you could try a free Rizful account -- https://rizful.com ... when u have it set up, pls reply here so we can do this ā”zap test again.
Yes sir a tutorial would help spread the message š«”š§”
that CAGR looks to be dropping off a cliff quickly
With a loan, the taxable event is postponed, not avoided.
How do you avoid the annually refinanced loan compounding by 10% (or whatever the rate is) each year). Eventually you pr your estate will have to pay off an enormous loan. This is only really possible or sensible if you have a very large stack of bitcoin.
Thanks for the feedback nostr:npub19q7cfcez62fhqf6m700mujaec05gkvmk4te03xg00aa3s23cgm2sj33ajd , you can reach out to me privately now for a quick conversation on SimpleX app using the link belowā¦
https://smp11.simplex.im/a#DgGSsmMQmKcZ3HkAQWmmt8rchcgjuaPRjyWSMj8Ku04
Iāve been working on getting a STRIKE business account. How many rounds of questioning should I expect before they allow me to do so? Itās for a new business, a start up, self funded. Itās taking longer than expected and I donāt know why they wouldnāt ask me all the questions they have all at once. Is this normal?
Strike is needed in Canada
Thanks for the feedback nostr:npub1w73fl4v5zkqzl8l6vztfgcs87hq5q7hqls4cgxnns0jr0vvrwwzsmwhxk2 , you can reach out to me privately now for a quick conversation on SimpleX app using the link belowā¦
https://smp11.simplex.im/a#DgGSsmMQmKcZ3HkAQWmmt8rchcgjuaPRjyWSMj8Ku04
š¤š¤š¤
Taking a loan backed by bitcoin may backfire in some countries with wealth tax and obligation to report crypto assets.
Jack, does strike have a way to deposit physical checks with a phone like banks do? As farmers we get a lot of checks written for our products. If strike was able to deposit these into an account I would ditch the bank completely!
Thanks
strike works best the more senior you are then. Every session feels like an audit.
Would I fk rely on it doing its job as a daily driver. Total capitulation to the regulator.
Someone knows if a similar model with bitcoin backed loans is possible in Europe?
Firefish.io
Until we can pay on lightning or ecash everywhere, you should consider carrying some amount of physical cash. Privacy is important. If we donāt continue to use cash we may lose the option more and more.
You could have less than 0.1% of your savings in physical cash, lose a small amount to debasement, and make a huge privacy gain.
Bill pay with strike using bitcoin is great by the way. š
Thanks for the feedback nostr:npub13yg7upgshphywdsc0eqwsraf0vzmknqmfc8ywl0qgqx772u2jmwswl9fdk , you can reach out to me privately now for a quick conversation on SimpleX app using the link belowā¦
https://smp11.simplex.im/a#DgGSsmMQmKcZ3HkAQWmmt8rchcgjuaPRjyWSMj8Ku04
Yes please
Thanks for the feedback nostr:npub1sggqq456wg8qd4kjgzfxznga0k6zaz988nd0llke8p7zmcvcpz0ssu85ya , you can reach out to me privately now for a quick conversation on SimpleX app using the link belowā¦
https://smp11.simplex.im/a#DgGSsmMQmKcZ3HkAQWmmt8rchcgjuaPRjyWSMj8Ku04
Iām sold!
Yes please make the video tutorial.
Doesn't the loan compound forever? What if loan gets enormous and has to he paid off, that would result in a taxable event? (Sell BTC, pay loan). Thank you
Thanks for the feedback , you can reach out to me privately now for a quick conversation on SimpleX app using the link belowā¦
https://smp11.simplex.im/a#DgGSsmMQmKcZ3HkAQWmmt8rchcgjuaPRjyWSMj8Ku04
Thatād be greatājust make sure to include how to navigate a bear market too. I think if someone can make it through a bear market living on Bitcoin, it really boosts their confidence to stay off fiat.
Thanks to you I have joined the negative fiat club!
Unreal Jack mate. Definitely pathing the path I have been listening and watched those earlier videos. I know you said debit/credit cards are not a priority and the process of saving in bitcoin borrowing in dollars butā¦ the Strike marketing and ease of use I think maybe a missed opportunity. Even as alongside reward points old school credit cards (I get it), not to mention fees Strike would acquire more bitcoin I canāt imagine why you would pass up that opportunity. I think with all the products and services you offering if you keep the maxi rep, self custody and lightning options no reason to use any other platform for anything and reporting would be a lot easier for everyoneā¦
nostr:nprofile1qqsvf646uxlreajhhsv9tms9u6w7nuzeedaqty38z69cpwyhv89ufcqpzamhxue69uhhyetvv9ujucm4wfex2mn59en8j6gprfmhxue69uhkummnw3ezummjv9hxwetsd9kxctnyv4mq25cm22 ^
hey -- we want to send you a test zap, but couldnāt find a NIP-05 or ā” lightning address on your profile. u can set one up for free on rizful https://rizful.com ... then pls reply here and we will do a test zap.
Can you walk me through the mechanics of this? Or direct me to where youāve already done so.
My life costs about $80k per year. So assuming I am conservative, only utilizing 25% LTV, Iām assuming I would need approximately $325k worth of BTC. However, assuming I roll these loans, what percentage year over year gain and/or additional investment would be required to repeat this yearly?
Thanks for the feedback nostr:npub18px38l97mvrwx3aynmztj8r9nrl0krj48kapmtcft54znymq930qq6qefw , you can reach out to me privately now for a quick conversation on SimpleX app using the link belowā¦
https://smp11.simplex.im/a#DgGSsmMQmKcZ3HkAQWmmt8rchcgjuaPRjyWSMj8Ku04
Iāve been šÆ BTC only since 2018ā¦ I think itās almost a requirement to be a cyber warrior or at the very least a cyberPUNK to be able to comprehend how to navigate life with BITCOIN!! Call it Survival Evolved ššš“āā ļø
nostr:nevent1qqs862nhq44cs9s7uuz7rawhlhy0jg4zv5tp7jumfgrnu7thpr26u6gezmjgf
nostr:nprofile1qqsvf646uxlreajhhsv9tms9u6w7nuzeedaqty38z69cpwyhv89ufcqpzpmhxue69uhkummnw3ezuamfdejsz9mhwden5te0wfjkccte9e3h2unjv4h8gtnx095sey2wlc is there a way to do it with debit cards ? I donāt like credit cards .
