pull down to refresh
209 sats \ 4 replies \ @justin_shocknet 16 Jan \ parent \ on: The Future Of Bitcoin Lending? bitcoin
Let me follow up with a practical tip for anyone looking to get liquid with coin they hold...
Say for example you're married with a couple kids, you don't pay any taxes on capital gains as long as its under the 95k or so a year according to the income bracket table. Single with no kids? its a little less than half that or so.
Whatever that number is you don't pay taxes on in a given year, you can sell that amount of your physical Bitcoin and re-buy it in an ETF...
You can then borrow against that ETF on margin (most brokers should allow about 50% of previous days closing price). You can keep doing that as the value goes up. Think of this brokerage account as a credit card you never have to pay assuming Bitcoin goes up faster than you draw against it...
You just need to not be retarded and max it out at ATH's, if you do a margin call will forcibly sell some (incurring potential tax liability) to bring you back under that 50% threshold.
reply
this statement sounds crazy scary reckless to me
I don't know anything about this kind of stuff
That's why rich people use margin and not joe average, requires some knowledge of financial engineering
reply
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.
reply
Rich people hire financial engineers, joe average at best only has access to schmucks that rich people haven't occupied already
Margin is more a tool of managing to stay rich, not get rich
In Bitcoiners case, it's a less risky and less expensive way to borrow against Bitcoin and stay Bitcoin rich instead of selling and paying taxes like a poor would
reply