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:
- Use the loan to buy a revenue generating business (or other asset)
- Use the business revenue to pay back the loan
- Now you own the bitcoin and the business
- 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.
