What's the poor man's option? \ stacker news ~Personal

1403 sats \ 41 comments \ @Fabs 4 Mar Personal_Finance

A simple question I do not hold the answer to, yet.

The wealthy take out loans against their abundance of hard assets, buy more hard assets with that loan, and repeat the process after paying off said loan.

How do I, a simple man, copy the above?

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557 sats \ 2 replies \ @TheWildHustle 4 Mar

The winning strategy is most likely dollar cost averaging into cold storage without leverage.

10 sats \ 1 reply \ @Lost_dogz 4 Mar

☝️ This, and I'd like to add that you should do proper utxo management. 10 years from now, the fee environment is likely to be quite high and you don't want to end up with many 0.0001 utxo's. DCA until you have a decent amount, and then withdraw to cold storage

0 sats \ 0 replies \ @Fabs OP 5 Mar

Absolutely.

877 sats \ 11 replies \ @Cowboy 4 Mar

Bitcoin is only the Key🗝️

Better work at Mc donals!

Stay humble, Stack SATs (some present from your income)

Never sell your Bitcoin

HODL 10Y+

105 sats \ 9 replies \ @Fabs OP 4 Mar

Yeah, what the fuck am I supposed to do with this input?!

156 sats \ 3 replies \ @hodlpleb 4 Mar

He's saying:

Work
Save $ in Sats
Repeat Steps 1 & 2 for 10 years
Then you will have enough wealth to take out a loan against your bitcoin

51 sats \ 2 replies \ @Fabs OP 4 Mar

Kudos for deciphering that.

21 sats \ 1 reply \ @hodlpleb 4 Mar

If you fill the bitcoin bucket on a regular basis, and the price continues to increase as anticipated, it will become increasingly difficult to acquire a whole bitcoin (likely out of reach for most people at this point), but if you manage to get to 0.1 (or 0.25, 0.5, whatever...) and bitcoin really goes to $10M or $40M or $100M ... that leaves you with a healthy amount of wealth, as time goes on

0 sats \ 0 replies \ @Cowboy 4 Mar

💯 persent

21 sats \ 3 replies \ @Atreus 4 Mar

@Cowboy is correct though. The wealthy who do that didn't do that in a day—globally speaking, most of them come from generational wealth. The tech giants are admittedly nouveau riche, but, like oil giants yesteryear, they hit upon on an emerging natural resource at the right time and place and monetized it. Neither of those are easy to replicate.

Ever read Franklin's The Way to Wealth?

Vessels large may venture more, But little boats should keep near shore.

With btc, the optimal strategy really is to just work (even at McDs) and save. A satoshi saved is a satoshi earned.

21 sats \ 0 replies \ @Fabs OP 4 Mar

Fair, solid quote too.

0 sats \ 0 replies \ @03d99caedc 4 Mar

Some did. Inherited.

0 sats \ 0 replies \ @Cowboy 4 Mar

deleted by author

0 sats \ 0 replies \ @Cowboy 4 Mar

I guess you are not a poor, This is for extreme poor people (Just a advice) Better find a job and Buy bitcoin.

PS : Answer for your question!

10 sats \ 0 replies \ @Cowboy 4 Mar

*McDonalds *Persentage

99 sats \ 12 replies \ @k00b 4 Mar

My understanding is that many of them don't really pay off the loan. They refinance.

Are you asking how you can get non-collateralized (aka unsecured) loans? Or are you asking how you can get smaller collateralized loans?

0 sats \ 11 replies \ @Fabs OP 4 Mar

Hm. I'm referring to smaller collateralized loans.

99 sats \ 10 replies \ @k00b 4 Mar

If it's a traditional asset, you should be able to go to a bank or other financial institution.

If you want to use bitcoin as collateral, Unchained does this but you have to over-collateralize (40% LTV). Others might do something similar but I'm unaware of them.

0 sats \ 9 replies \ @Fabs OP 4 Mar

Yeah, I've heard of Unchained, and have been considering them as well as Nexo, but I remain skeptical of both.

99 sats \ 6 replies \ @k00b 4 Mar

Skeptical how? With Unchained at least, they can't unilaterally and opaquely rehypothecate your collateral because you hold a key to the collateral.

0 sats \ 1 reply \ @elvismercury 4 Mar

Didn't they cancel their lending product? Or did I hallucinate it?

Their website suggests it exists, which is a vote for the latter.

27 sats \ 0 replies \ @k00b 4 Mar

I had the same hallucination until I looked it up. They might've just increased the minimum or something.

0 sats \ 3 replies \ @Fabs OP 4 Mar

Meh, I still don't trust it enough, they're also pretty expensive ain't it? Would you make use of their services?

99 sats \ 2 replies \ @k00b 4 Mar

I don't use credit. I'm too afraid of dooming my future self.

0 sats \ 0 replies \ @WeAreAllSatoshi 4 Mar

Really? No credit at all, or just no big-ticket items that usually require credit?

reply on another page

0 sats \ 0 replies \ @Fabs OP 4 Mar

I breath risk, but not of the bad kind.

reply on another page

0 sats \ 0 replies \ @badabing 4 Mar

Definitely don't touch Nexo. Very shady.

0 sats \ 0 replies \ @Tef 4 Mar

I guess the risk is very high in the case of Unchained or Nexo, while going to a bank for a loan you will pay high interests. It’s difficult to answer this question.

500 sats \ 2 replies \ @TwoLargePizzas 5 Mar

The first thing to understand is why that strategy works? The answer is simple... currency debasement.

When you borrow money against your hard assets you're effectively shorting the dollar and going long the hard asset. It's a good trade because those dollars you borrowed are going to be worth less than the hard asset you purchased over time.

14 years ago I was in your shoes.

First I DCAed into my bank account.
Then I DCAed into my home loan.
Then I borrowed against my house to buy another house.
Now I DCA into Bitcoin.

This is the strategy I took and it worked. It worked because I was DCAing into scarce desirable assets. But I didn't really understand what I was doing at the time. In hindsight, it's obvious that DCAing into Bitcoin is the best option.

It doesn't happen overnight but it is simple. Just start accumulating slowly, be patient and keep going.

21 sats \ 1 reply \ @Fabs OP 5 Mar

Although the above is nothing new to me personally, I must say: that's a mighty-fine... Hm. Let's call it a summary!

Nice. Semi-kilo-zapped!

0 sats \ 0 replies \ @TwoLargePizzas 5 Mar

Greatly appreciated. Best of luck on your journey.

Oh, one thing I should add... don't worry too much about being able to paying off the debt. I used to think paying down the debt was super important but it turns out you'll end up having equity to borrow against with time anyway.

At this point if I wanted to I could sell half my assets and be debt free but that's not the plan. The plan is to keep going until I'm ready to stop whenever that might be.

0 sats \ 0 replies \ @riberet19 19 Mar

I think the best thing you can do is do what other stackers have recommended, stack sats and hodl.

0 sats \ 0 replies \ @watchmancbiz 11 Mar

Dumpster Dive lol

0 sats \ 1 reply \ @cryotosensei 5 Mar

There are many ways to accumulating wealth. Focus on what you do best. You seem to be earning sats aplenty from your posts. Just keep doing that. Rinse and repeat xP

0 sats \ 0 replies \ @Fabs OP 5 Mar

I'm slowly creeping towards my SN-goalies :)

0 sats \ 0 replies \ @quark 4 Mar

simply copy it. but it requires a minimum amount to get the first hard assets. Just keep stacking. buy and hodl as much as you can for now.

0 sats \ 0 replies \ @alexnikned 4 Mar

No way to copy! The only way out is to study...

0 sats \ 0 replies \ @OT 4 Mar

DCA buy sats over lightning. When larger that 1m sats, transfer to cold storage. Just keep at it until you are no longer poor.

0 sats \ 0 replies \ @KLT 4 Mar

I feel like if I could get a loan with a low interest rate in fiat, then I’d consider paying it down with fiat and also occasionally pay it down with appreciated BTC depending on what my needs are.

0 sats \ 0 replies \ @TheBTCManual 4 Mar

If you're not keen on drawing down your Bitcoin position you'll have to wait for more mature products, where you can borrow against it without knee-capping yourself on the interest rates and have the margin should your loan to value fall short.

I don't see this happening for some time on real bitcoin

I think it rolls out first on ETF products, since it's pretty normal to borrow against your ETF or sell calls and generate an income on your position

I don't know how many custody providers would jump into this market for real bitcoin, but anything is possible

0 sats \ 0 replies \ @Undisciplined 4 Mar

That strategy only works if the asset appreciates nominally at greater than the rate of inflation and prevailing interest rates combined. The way normal people do this is with home mortgages. The reason this is effective is because you have to live somewhere, so in this case the asset appreciation only needs to outpace inflation and the interest rate minus what rent would have cost you had you not bought.

Short answer: If there were a free lunch, someone would have eaten it already.