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34 sats \ 17 replies \ @grayruby 11 Oct \ on: MicroStrategy's $3.9B Bitcoin Play: Use Saylor’s Infinite Money Glitch! econ
Alright, I am convinced. We are taking Stacker Sports public and running the MSTR playbook.
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He has the cash flow to handle his debt servicing, so this isn't as wild of a strategy as it might seem.
I'm sure the board were just a bunch of people who don't understand bitcoin (like pretty much everyone in the general public).
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I don't know much about MSTR, really. That wasn't mentioned in the video and it would seem to contradict the idea that the revenues from the software business can be used to service the debt obligations.
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It does have me reevaluating how to handle a new mortgage, if we end up moving. I'm not sure I can convince the wife of the MSTR strategy, yet.
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We would definitely be selling it. The idea had been to use the equity for a large down payment on a less expensive house, perhaps even with just a 15 year mortgage, so that our monthly payments would be substantially lower than they currently are.
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Two ways you could play it then. You could make a slightly less large down payment. Say you were going to put 200k down. Put 150k down instead and put 50k into Bitcoin or some variation of that. Even 10% of your down payment into Bitcoin likely eventually recoups the entire down payment. But maybe you want to be slightly more aggressive than that. Or you could put as much down as possible and take some of the savings in your monthly expenses due to reduced mortgage payments and sweep that into Bitcoin on a monthly DCA.
Family home is important. Don't do anything your wife isn't comfortable with. Bitcoin will do its thing. Just accept you will regret you didn't buy more. Haha.
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I know she's ok with saving some of whatever's left over in bitcoin, but I think she'll be skeptical of this strategy.
That's really fine with me, anyway. I'm more psychologically drawn to the minimizing monthly expenditures strategy, but I can see how that likely leaves a bit on the table.
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In my humble opinion, don't do anything your wife isn't comfortable with. I am sure you can make the case for a reasonable bitcoin acquisition when you sell your home and settle on what the down payment for the new one should be. Even though you came to bitcoin later, don't feel like you need to play catch up. You are still way earlier than most people and understand it better than 99% of people.
It's good that your wife is involved in family finances. My wife just looks at our joint account balance going down and assumes we are poor. She hasn't quite grasped the income poor, asset rich strategy I am going for. She keeps telling me to get a job. Haha.
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Funny thing is I did get a part time contract job and got my first invoice paid today for a few hours of some boring training stuff I did. I saw the money hit the account and transferred 2/3 of it out to my shakepay account to buy more bitcoin. Haha. I don't think this is what my wife had in mind.
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I'm actually pretty happy with how well I've "caught up". My back of the envelope accounting tells me that I've stacked what I anticipate being enough to live off of for over 10 years and I'm putting away about a days worth of bitcoin everyday.
Financially, we're doing fine. I'm just excited by all the different ways to get more integrated into bitcoin world, so that I can get out of fiat world.
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The mortgage interest rate is going to be better than a personal loan interest rate.
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Not really. If you're doing this as described (i.e. responsibly) then you have sufficient assets and revenue to cover the monthly payments, in the event bitcoin doesn't appreciate enough to cover them.
All you'd be doing with a higher interest loan is making it less likely that your bitcoin appreciation covers the loan payments. That's actually the riskier strategy.
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