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I don't like the idea of rolling over debt to pay old debt, because then your debt just keeps increasing unless you have fiat income to pay it down with time. Maybe I'm just too dumb to understand how that works without eventually selling the Bitcoin.

The Bullish ₿itcoiner 11mo ago

What scenario are you thinking about when you say rolling over debt to pay old debt? Like a loan that pays off another loan but has a better interest rate? Maybe I’m too dumb too. 😄

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Discussion

Jay 11mo ago

I just tried to think like, I take a loan of 10k with 20k BTC down for a year.

At the end of the year, I owe say 11.5k and my Bitcoin is worth 25k. Do I take out a second loan with 23k BTC to repay the old one and reclaim more Bitcoin? I'd have to have a hell of a lot of Bitcoin to buy a year's worth of fiat and roll it over with less Bitcoin in collateral ever year. 4 years worth of Bitcoin to keep the scheme going.

The Bullish ₿itcoiner 11mo ago

Yeah that’s interesting. This scenario assumes that all goes well right?

Jay 11mo ago

Yeah, like your Bitcoin can only go up and can't lose too much value too fast. I'd seriously have to be playing with 1/10 of my stack in collateral at any time to feel safe.

SoapMiner 11mo ago

Bitcoin always causes max pain.

The Bullish ₿itcoiner 11mo ago

No lies detected.

Jay 11mo ago

But after that first repayment I don't have any more fiat actually, if I spent it all. Now I'm just in debt. Can't wrap my head around it.

The Bullish ₿itcoiner 11mo ago

Same. Think I’m gonna have to stay humble and stack sats about it.