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0 sats \ 0 replies \ @crrdlx OP 19 Jan \ parent \ on: Nostr referral stats possible? nostr
Good button and good to know about customizing the link.
remind me in 100 days
April 30, 2025 will be Trump's 100th day as president #47...time for a report card.
"Which instigates the moral reflection that life is made up of sobs, sniffles, and smiles, with sniffles predominating." O'Henry, "The Gift of the Magi"
https://webhome.auburn.edu/~vestmon/Gift_of_the_Magi.html
Unfortunately, I do not. Writing this, I looked around for such a thing, though only with a half effort. Maybe another stacker has some insight here.
And like clockwork...
https://www.coinbase.com/loans
So, if you've knowledge of financial engineering, then using margin is not reckless? And you therefore become rich? Hmm. That sounds like, if you have NASCAR knowledge/skill, then driving really fast is not dangerous. No doubt it's less dangerous than Joe Average driving fast, but 200 mph is still 200 mph.
the unrealized capital gains may be greater than the amount paid for the loan
I didn't even think of that, but yes! If Alice had taken out a $25,000 loan five years ago at a 10% interest rate, she would have had to pay $37,500 total over those five years. That's a lot more for a 25k car, but that's interest and taking out loans. Her $25k worth of BTC would have gone up by 1,0026% (from $8,902 to $100,186 currently). I think she'd be okay with the extra car cost.
So, Alice has some BTC and wants a new car. She doesn't want to sell her BTC for cash to buy the car. Her preference is to use the BTC as collateral, get a loan in fiat, pay it back like any other loan with the lender's interest, say 60 months. At the end of the 60 month's, Alice has a 5 year old car, it costs her more than had she bought with BTC on day one because of the interest, but she still has her BTC along with the car. Personally, I see this as a wise move.
I see only two possibilities loan-wise though, both requiring trust:
- A third party holds the bitcoin...both parties must put their trust in them. This option would mean relinquishing ownership of your bitcoin (ouch!) by sending it to the third party. You would no longer hold the keys to the coin (ouch!). Even if Alice proved to the lender that she controlled the keys, there's no way a lender would allow her to hold the bitcoin/keys on a promise, "Oh yeah, if I don't pay back the loan, I'll send you my bitcoin." In the same way, Alice wouldn't trust the lender who said, "Just send the bitcoin to me, I'll hold it, then after you pay off the loan I'll send it back."
- Smart contract...both parties must trust the smart contract is bug-free, hack-free (eg, The DAO). This option would also mean relinquishing your keys/coin by sending your BTC to the smart contract (ouch!). You'd really have to trust that the contract is foolproof (ouch!).
Down the road, I imagine firms and smart contracts will simply build trust over time. Kind of like depositing money in the bank, we trust that it will be there next week. That's not ideal, but are other options even possible?
I think of Makinac Island in Michigan. Every year it freezes over. Some imbecile volunteers to become the first person to drive a snowmobile across the ice to test if it's solid enough to support the weight. They might make it no problem, they might break through the ice and die. If they make it across, another person follows those tracks, then another, then another. Eventually there's a full-fledged back and forth highway across the trusted ice road. Maybe this is how the (a) trusted third party and/or (b) smart contracts will pan out.
Placebo Credits aren't nothing. By definition, you feel better by sending them. 😀
I like that you feel $25 is worth it. Im skeptical though. My guess is that it is money given for no purpose other than sustaining an organization. I could be wrong though.
Actual point...to quell my annoyance via catharsis.