Replying to Avatar Matt

Thinking about playing with a small Bitcoin backed loan to buy a new vehicle.

There are obvious risks with doing this, especially with a large stack percentage, but I think it could be cool for conservative toe dippers like me. If the thesis is correct, the car should be free over time. Again, with risks. One being that you can't roll the loan over as expected and have to liquidate to pay it all back at once. Definitely wouldn't do this with large amounts.

Anyone trying this strategy?
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Bill Cypher 2mo ago

I question the timing. 3 green 1 red. Taking out a bitcoin loan right before a bear market crash couldn't be worse for you and couldn't be better for the custodian hoping to liquidate your Bitcoin during an 80% drawdown.

I've been around long enough to notice that the loan hype level pushed by influencers is inversely correlated to how wise a time it is to take out a bitcoin backed loan as a pleb.

I'd also note that unless you have shit credit you'll probably get better rates with a tradfi loan and your Bitcoin takes on no risk.

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