Ask SN: Fiat debt and bitcoin stacks \ stacker news ~AskSN

406 sats \ 26 comments \ @User21000000 11h AskSN

As ones bitcoin stack rises and in comparison to local currencies what do you do with your fiat debts

For example I have a substantial home loan in dollarydoos and a growing value in btc with bull runs coming should I be using bitcoin to pay out fiat debts to be off the hamster wheel or do you leave the fiat on long term loans 30 years and just pay the minimum and grow the btc stack on the side?

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5 sats \ 1 reply \ @OriginalSize 5h

We're still pretty early so if you can manage the debt and wish your stack was higher just stay on the hamster wheel and ride out a bull run or two because if you're thinking this is a possibility now just imagine how cheap it's going to be to do later.

0 sats \ 0 replies \ @User21000000 OP 5h

Yep I’m sold on holding and building possibly sell a bit if required when I want to retire if I have any small amount of debt left

5 sats \ 1 reply \ @f6287b82CC84bcbd 6h

Use any equity you have to buy more bitcoin. Buy income producing assets. Cut as many unnecessary expenses as possible

0 sats \ 0 replies \ @User21000000 OP 6h

Yes I could put bulk cash in bitcoin if I didn’t have a house to pay for

5 sats \ 1 reply \ @OT 8h

I guess it depends on the interest rates and how much you think the dollar will be inflated over the next decade.

It might be tough now, but likely to get easier over the next few years as interest rates come down, inflation rises and wages rise to try and keep up.

0 sats \ 0 replies \ @User21000000 OP 8h

Maintain the stack as long as I can and use fiat job money to maintain loans and hopefully the stack far exceeds the value owed

5 sats \ 3 replies \ @Bell_curve 10h

I would pay the loan minimum and grow your btc stack thru 2025.

Reassess on Jan 1, 2026

My 2 cents My 2 sats

21 sats \ 2 replies \ @User21000000 OP 10h

Yeah just keep punching on and reassess

0 sats \ 1 reply \ @Bell_curve 10h

We are still in the middle of a bull run. 2025 should be bullish too.

2026 will probably be bearish because it is in between the last and next halving date

21 sats \ 0 replies \ @User21000000 OP 10h

Yep got you during that period I could sell down some position to relieve my fiat obligations then stack them back in the bear possibly

5 sats \ 3 replies \ @denlillaapan 11h

Depends on risk tolerance and who/what obligations you have. Plus your income and predictability etc. Mortgages are usually very cheap, safe, and tax efficient debt; paying it off in advance by selling as awesome an asset as BTC -- probably not great. (The return is limited to the equivalent of the interest saved)

If you have dependencies or unpredictable jobs or seasonal income etc, and switching out some asset for more home equity would make you sit safer and better financially, then yeah maybe give up some gains for it

Hard to give generic advice, I think

0 sats \ 2 replies \ @User21000000 OP 10h

It’s hard . As being with out fiat debt would make life a lot more relaxing and open up options but I guess if I can chip away at it and keep the btc growing that would be more ideal. As if I sell down some to pay debt I’ll get hit with capital gains tax as well that will reduce the amount

0 sats \ 1 reply \ @denlillaapan 10h

Also that.

Fiat incentivizes you to keep rolling debts for as long as possible. Taking some off to secure life is understandable -- and correct, in a natural order -- but harmful/wrong in fiat

0 sats \ 0 replies \ @User21000000 OP 10h

Another question if we went on a Bitcoin std and dollarydoos went away would the banks just say you owe 700k that’s now 7 btc for that loan . Is that how it would go and then everyone would have to rethink home ownership or the value of said realestate would go down as the btc value goes up the house cost will go back down to a cost to replace only value?

10 sats \ 3 replies \ @Satosora 11h

There is no right answer for this. It depends on how much risk you want to take.

0 sats \ 2 replies \ @User21000000 OP 11h

What risk? Risk of selling and missed btc gain ?

0 sats \ 1 reply \ @Satosora 11h

If you want the btc gains, sell your house and invest it in btc. Live in a box.

0 sats \ 0 replies \ @User21000000 OP 11h

So I can see I can do both keep the bitcoin and over time the debt will be minimised in comparison to my stack provided I can maintain payments and try and pay it out with fiat and keep the honey pot growing to the side

0 sats \ 7 replies \ @DarthCoin 10h

So all @Lux posts and mine were in vain... you read nothing. Did you know WHO created that fictional debt in the first place?