As ones bitcoin stack rises and in comparison to local currencies what do you do with your fiat debts
For example I have a substantial home loan in dollarydoos and a growing value in btc with bull runs coming should I be using bitcoin to pay out fiat debts to be off the hamster wheel or do you leave the fiat on long term loans 30 years and just pay the minimum and grow the btc stack on the side?
So all @Lux posts and mine were in vain... you read nothing.
Did you know WHO created that fictional debt in the first place?
You
the wizard of Oz?
The Wizard of You
Yes
Doctor who
Dr. You
Possibly
I would pay the loan minimum and grow your btc stack thru 2025.
Reassess on Jan 1, 2026
My 2 cents
My 2 sats
Yeah just keep punching on and reassess
We are still in the middle of a bull run.
2025 should be bullish too.
2026 will probably be bearish because it is in between the last and next halving date
Yep got you during that period I could sell down some position to relieve my fiat obligations then stack them back in the bear possibly
yep sounds about right.
It's brrr season now
Sure is
There is no right answer for this.
It depends on how much risk you want to take.
What risk? Risk of selling and missed btc gain ?
If you want the btc gains, sell your house and invest it in btc.
Live in a box.
So I can see I can do both keep the bitcoin and over time the debt will be minimised in comparison to my stack provided I can maintain payments and try and pay it out with fiat and keep the honey pot growing to the side
We're still pretty early so if you can manage the debt and wish your stack was higher just stay on the hamster wheel and ride out a bull run or two because if you're thinking this is a possibility now just imagine how cheap it's going to be to do later.
Yep I’m sold on holding and building possibly sell a bit if required when I want to retire if I have any small amount of debt left
Use any equity you have to buy more bitcoin.
Buy income producing assets.
Cut as many unnecessary expenses as possible
Yes I could put bulk cash in bitcoin if I didn’t have a house to pay for
I guess it depends on the interest rates and how much you think the dollar will be inflated over the next decade.
It might be tough now, but likely to get easier over the next few years as interest rates come down, inflation rises and wages rise to try and keep up.
Maintain the stack as long as I can and use fiat job money to maintain loans and hopefully the stack far exceeds the value owed
Depends on risk tolerance and who/what obligations you have. Plus your income and predictability etc. Mortgages are usually very cheap, safe, and tax efficient debt; paying it off in advance by selling as awesome an asset as BTC -- probably not great. (The return is limited to the equivalent of the interest saved)
If you have dependencies or unpredictable jobs or seasonal income etc, and switching out some asset for more home equity would make you sit safer and better financially, then yeah maybe give up some gains for it
Hard to give generic advice, I think
It’s hard . As being with out fiat debt would make life a lot more relaxing and open up options but I guess if I can chip away at it and keep the btc growing that would be more ideal.
As if I sell down some to pay debt I’ll get hit with capital gains tax as well that will reduce the amount
Also that.
Fiat incentivizes you to keep rolling debts for as long as possible. Taking some off to secure life is understandable -- and correct, in a natural order -- but harmful/wrong in fiat
Another question if we went on a Bitcoin std and dollarydoos went away would the banks just say you owe 700k that’s now 7 btc for that loan . Is that how it would go and then everyone would have to rethink home ownership or the value of said realestate would go down as the btc value goes up the house cost will go back down to a cost to replace only value?