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How to use Bitcoin Loans to Grow Your Wealth
524 sats \ 16 comments \ @hodlpleb 6 May bitcoin
I think it is probably overall early to start taking out loans against your bitcoin, but when Jack Mallers posted about Strike's loans, the question came up: if I don’t have $100k without selling my bitcoin today, to pay back $113k in a year, wouldn’t I still need to either (a) sell my bitcoin or (b) “find” $113k, even though I couldn’t find “100k” a year ago?
I had previously written about this in #380081 but thought it was a good moment to refresh the idea -
The basic steps are:
  1. Use the loan to buy a revenue generating business (or other asset)
  2. Use the business revenue to pay back the loan
  3. Now you own the bitcoin and the business
  4. Repeat steps 1-3
There will of course be details and nuance to this, (such as, take a very low LTV so you do not risk getting liquidated), but this general idea has escaped most people throughout the course of history - use assets to acquire more assets.
Since most of us here have never been rich before , I will continue to explore this topic as we move into the future.
I would love to continue the conversation with anyone interested.
Do your own research.
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113 sats \ 9 replies \ @zapsammy 6 May
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0 sats \ 0 replies \ @Car 7 May
lol exactly
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0 sats \ 7 replies \ @hodlpleb OP 7 May
yes you can play it safe forever if you prefer
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0 sats \ 6 replies \ @zapsammy 10 May
playing safe with what, ur family's future? the alternative is to gamble "just a little bit" with ur family's future; choose wisely...
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0 sats \ 5 replies \ @hodlpleb OP 12 May
so how are you going to actually use your bitcoin
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0 sats \ 4 replies \ @zapsammy 12 May
by using it, duh; how are u using the internet? why use the fiat system in order to use bitcoin, that is insanity; just u wait, normies are about to realize that without fiat attached directly to their state-issued identity,, they will not be able to use the internet at all;
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0 sats \ 1 reply \ @hodlpleb OP 12 May
i don't quite follow - is taking out a loan "risking" your family's future, but spending your bitcoin is playing it safe?
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0 sats \ 0 replies \ @zapsammy 12 May
when u take out a loan against bitcoin, u are essentially signing up for enforcement of the fiat system against urself, in addition to many other enforcements u already signed up for in ur fiat life; if u think it thru, fiat money does not work without the enforcement units, and those are controlled by the fiat religion & fiat money;
bitcoin does not have any violent enforcers, the only enforcement are the rules of the code, so it is inherently much safer than playing around with fiat tools on bitcoin;
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0 sats \ 1 reply \ @hodlpleb OP 12 May
you probably have more bitcoin than me, i cannot imagine spending much of it and not passing it down to my kids
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0 sats \ 0 replies \ @zapsammy 12 May
Darthcoin has expressed the idea multiple times, that PoW (proof of work) is required in order for anyone to inherit even a small part of his stack; i share in his sentiment - if no one is intelligent enough to propose a very good use case for the stack, then no one deserves to get any of it;
using bitcoin for the sats circulation within the bitcoin economy is imperative for it to function as a medium of exchange - one has to test the payment system, see what works and what doesn't, find more efficient and cheaper routes, and teach others; without using bitcoin, it's useless, less private, and even risky to own by any one entity; if u can start with 1-10 sat zaps, then do that and later try real payments... understand that 10,000 btc/2 pizzas was not a waste, but a test;
if u don't agree or cannot follow the reasoning in the above two paragraphs, then don't worry about it - keep stacking and thinking; there are many degrees of awakening, which are actually infinite, and no one shud be rushed thru the awakening stages...
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10 sats \ 1 reply \ @DarthCoin 7 May
Bullshit fiat maximalism
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0 sats \ 0 replies \ @hodlpleb OP 8 May
here, have some cowboy credits
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0 sats \ 1 reply \ @Dkryptoenth 7 May
That's not true cos you'll be charged interest on the loan as a borrower except you're the lender and Curve should be considered as a good Defi platform
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0 sats \ 0 replies \ @hodlpleb OP 7 May
what exactly is "not true"?
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0 sats \ 1 reply \ @Coinsreporter 6 May
But where do you get the loan from? I mean what's the best option?
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60 sats \ 0 replies \ @hodlpleb OP 6 May
I could not say. my feeling is it is too early, unless you have a ton of bitcoin. I would not take out a $100,000 loan against a handful of bitcoin right now, too high risk that there is a significant drop and you lose the bitcoin.
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