15 sats \ 1 reply \ @gnilma 24 May 2023 \ on: Have you used hodl hodl for borrowing against your stack for mining? bitcoin
I suggest you stay humble and stack sats. If you want to buy miners, buy them with your own sats instead of borrowing sats to buy them.
Maybe many of us are too used to using debt money and with a constantly devaluing currency, debt makes sense. Yet, with a deflationary currency like bitcoin, it will be much harder to service your debt unless the return on investment from investing your borrowed money is greater than the increase in value of the currency. In other words, your mining venture better be making bank for you to come out on top in this trade; however, with the competitiveness of the bitcoin mining industry, I’m not so sure this loan is a good idea…
I get you thanks for your insight mate. I am deciding. I guess my only concern is that if price takes a deep dive on a 50% LTV collateral I will for certain loose my sats if I don't chip in more sats.. so I guess there is a time and place for doing this or there isn't at all. I like the non custodial lending offered by hodl hodl. I am only afraid here of the volatility.
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