Napkin math. Trying to think about the ₿ backed loans coming from Strike. Lot's of assumptions. But let's say you wanted $5k a month fiat.

At a loan to value of 50% you would put up 10k of ₿ to get it plus pay an annual interest rate of say 5% for one year. That means you would need to come up with the $450 a month to pay it back. If you did that every month for a full year you would put up $120k of ₿ and have a $5,200 a month payment with 12 loans.

So come month 13 you would get your initial 10k of ₿ released which could be rolled over for the next loan in a loop.

So you need to come up with the $5200 fiat a month and lock up your $120k ₿ year one. But by rolling over ₿ at the theoretical 50% yearly return you lower your monthly fiat payment by reducing your loan to value over time. Putting up $15k ₿ for $5k fiat with reducing fiat monthly payments each year creating a spread.

I think I would rather lock up a coin to live off it and watch my payment trend to zero than pay the irs an increasing amount and lose my coin.

This looks like if you have a whole coin worth $120k and cashflow $66K a year and live on $5k a month you may never need to sell your ₿ with a bottom of $60k.

In four years you get $5k fiat a month for near zero monthly for one coin collateral.

Am I thinking correctly.