pull down to refresh

81 sats \ 1 reply \ @Shugard 5h \ on: How to Borrow Against Your Bitcoin, or: Overcollateralized Loans are Inefficient econ
"It becomes economically efficient in that we're getting more for less." - that's what I want!
if you can perpetually roll debts forward while holding an appreciating asset, what’s not to like?
This is what scares me! What if you have to roll over in times when your BTC is low?
I am thinking of getting a loan for next year against my BTC to live on for a year of parental leave.
write
preview
41 sats \ 0 replies \ @denlillaapan OP 4h
yup, that is the (tail) risk you're taking. If you truly believe that BTC is destined for the stars, keep enough on the sidelines ready to top up in case of approaching liquidation—and like I said, consider the original amount gone (first scenario in hypothetical above), which it would have been had you simply sold.
reply