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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Aldocstr 2mo ago

This type of loan will get more and more popular as time goes by, might as well feel out the water if it is a manageable amount. However the LTV requires more bitcoin than what the loan migjt be worth and if you get margin called very little warning time to either add even more bitcoin or pay fiat toward the loan amount.

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Matt 2mo ago

Yeah, a consideration. It's definitely easier to ride out fiat loans during market turbulence. This is the main reason I think it's a bad idea to do this with large amounts. I'm essentially writing off the sats and hoping they don't liquidate. If they don't, I win. Has to be a line though to keep it safe.