How do you get on zero fiat if you have to service the interest of your bitcoin loans with fiat every month? Am I missing something?
Discussion
Youāre not. I was talking about this earlier and the reality is that if you donāt have a tremendous amount of capital the idea of rolling your loans over perpetually is not feasible. That said I support such loans because we want the products available.
There are many bitcoin products that I'm not sure how I'd use/implement them but I'm grateful they exist for when my brain expands enough to utilize.
Youāre not. #thatssofiat
Thank you š Itās literally the most fiat thing ever. Spending Bitcoin is the only way.
I donāt blame people though. We need to do a much better job of onboarding merchants. Thereās a ton of work to do.
Iām teaching a Bitcoin for merchant class upstate next month at my local organic farm store.
Crazy to think that 2013 levels of Merchant adoption was probably higher than today...
It's tough because for those of us earning fiat, we prefer to spend fiat (cash) for day to day things and save in Bitcoin. It's a hard thing to fight.
I would have way more Bitcoin if I'd never spent (obviously)
Iām not convinced they actually were. Seems like fan fiction, largely speaking. Probably true in a few places like NH though
Pay the interest and refinance at the end of the year. Hope the price is higher.
Thank you.
You're not suppose to pay it back...
Even if you donāt pay back the principal you have the service the interest every month.
strike offers a zero monthly payment optionā¦ the interest and the principal are paid at the end of the termā¦ so interest is higher but if the bitcoin price goes up in that timeā¦ the borrow can roll it over paying the interest and principal of the old loan with the new oneā¦ then repeat if theyāre lucky or just get rekt and loose their bitcoin if theyāre are unlucky.
been using loans for a couple years. never paid the monthly interest. get rate at 5-7%. bitcoin's risen 20%. arbitraging 13-15%. have closed out loans with a fraction of coin. other times, just rolled with smaller amount.
you don't have to use it.
question though: if someone uses their bitcoin to close their loan, is that still considered spending or not?
Thatās a great question! Maybe nostr:npub1drlw0wmu9tq37usx4qt3u6u4zj44mrf3zsfa6xhcdyrh3n4wpmgqr4rfg0 would know. Maybe not because youāre settling debt?
Also where do you get rates this low without any monthly payments?!! That is absurdly low. Even Helocās are higher.
I guess my question is more about the semantics around bitcoin being used.
What does it mean to "sell" versus "spend?"
If by selling, are we talking about simply selling Bitcoin for fiat and then that's it?
If by spending, we're talking about using Bitcoin as the medium to settle all debts (buying groceries, bills, etc), then wouldn't using Bitcoin to settle a loanāor credit card billābe considered spending it?
I'm not in favor of the former. I do support the latter.
Loans: I've used Ledn, Strike, Firefish and a bunch of others. They're OK. Not great. What kills me is their interest rate. And the wait... I've switch to Aave (gasp!). But it's "self-custodial" (grain of salt), no kyc, no questions asked, flexible, and straightforward. Plus, a 5% from Aave v a 12% from Ledn... If Bitcoin is "the most pristine collateral ever" then why are interest rates so high? Make it make sense. Competition is healthy. If there was a platform that BEAT a 5% rate, and it was Bitcoin only, then let's go.
Going "zero fiat" for your monthly expenses is just LARP at the moment. If you're paid in fiat, pay interest in fiat. Save the rest in BTC. Keep it simple.
Itās annual not monthly with most platforms.
Also - being on āzero fiatā and taking a ābtc loanā is contradictory and makes zero sense.
That I agree with. I was just gently taunting people like Mallers that say they own zero fiat when they borrow against their BTC š
I think you misunderstand what he is saying lol.
āOwning zero fiatā = saving everything in bitcoin. This does not mean that you donāt use dollars to interact with our current financial infrastructure.
Donāt try to sound smarter than Jack - losing proposition.
I think I understand what he means, but he still owns fiat in my book. You need fiat to service the loan interest payments.
Yes, if you pay interest monthly, you are on the wrong type of loan.
Pretty sure every loan on strike and unchained have monthly interest built in even if the duration of the loan is a year long.
Nope, you can either choose (Strike) or pay yearly by default (Ledn).