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/biz/ - Business & Finance

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25455911 No.25455911 [Reply] [Original]

You never have to sell your bitcoin just collateralize it

>> No.25456177

Simpletons take note.
1. Get BTC
2. Take a loan out on BTC
3. Pay interest off with whatever
4. When loan ends BTC price has gone up so you can refi it
5. Rinse/repeat
This is why you can't buy property in London or NYC: who would sell the goose that lays golden eggs?

>> No.25456237

>>25456177
can you explain refinance, how does that make me money?

>> No.25456314

what is the difference with just having a leveraged position? aren't they equivalent?

as in borrow $100 and refi, or go long with $100 on btc using btc

>> No.25456355

>>25455911
Bitcoin is going to be 100k EOY. What can you collaterize to that will give a greater return?

>> No.25456378

>>25456237
I will try.

Say you have a house worth $100,000
You take a loan out for $25,000 collateralised by the house, that is, if you don't pay the loan the bank gets the house
Your interest payment is $500 per month which you pay from gibs
Buy the time the loan is due the house is worth $130,000
So you take out a new loan - you 'refinance' - for $30,000
You pay off the old loan of $25,000
Leaving you profit of $5,000
You keep doing that for hundreds of years
While house prices go up faster than loan rates you're golden
You are a London or NYC family

>> No.25456417

>>25456314
Loans are way less risky than leverage. You can’t get liquidated with a loan.

>> No.25456505

>>25456417

Unless BTC shits and dumps 50% value.

>> No.25456576

>>25455911
What apps can i do this on pls thk u?

>> No.25456619

>>25456378
>which you pay from gibs
where do these gibs come from?

>> No.25456764

>>25456619
my gibs come from renting out property

>> No.25456799

>>25456378
Wherever you like. Government gibs, parent gibs, mowing lawns and clearing snow, onlyfans, wherever you like

>> No.25456869

>>25456378
You only make 5k profit and the expectation is the the house worth will increase that much, that quickly? okay lmao

>> No.25456885

>>25456378
Sounds like jewry

>> No.25456892

>>25456177
Yes. Thats why its called "Pristine Collateral"

99% of normies dont get that cash is a debt instrument....its an IOU. There is NO REASON WHY YOU SHOULD EXCHANGE AN ASSET FOR A DEBT.

>> No.25457011

>>25456764
cringe

>> No.25457026

>>25456869
That's only to make the math clearer. Can you buy a new york ho for $100k? Scale them all up
>>25456885
/biz/ are the new jews

>> No.25457128

>>25456378
And a key advantage to this is that no income tax is paid on money that is borrowed. The only tax due in this scenario is on the gibs.

>> No.25457226

>>25457128
Better still, the loan payment is a /deduction/ from taxes paid on your gibs; there's a great possibility your tax bill becomes zero

>> No.25457250

lmao literally 'this time is different' wrote unironically.
>>25456177
>4. When loan ends BTC price has gone up so you can refi it
when btc price goes down you have to liquidate and this creates a negative feedback loop that dumps the price.

>> No.25457333

>>25456885
It is. This is what caused the housing bubble in 2008. Nobody cares, taxpayer and Fiat holders bail out in the end. Just take the money and shut up

>> No.25457336

>>25457250
we'll drain juptier of all of its gas to mine before btc goes down again.

>> No.25457383

>>25457250
>when btc price goes down you have to liquidate and this creates a negative feedback loop that dumps the price.
this is easily managed by having a white person set your LTV ratio

>> No.25457388

>>25457250
>loans liquidate like shorts
duuurrrr

>> No.25457390

>>25456378
Good stuff anon

>> No.25457463

>>25457250
This is a possibility, but we'd all have to be retarded for that to happen. Aave also allows collateral swapping to prevent liquidation

>> No.25457892

>>25457383
lol this
if you're going to be a jew, don't be a nigger - it's easy

>> No.25458003

>>25455911
Alternatively:

>collateralize your BTC
>BTC crashes
>you lose money

But new paradigm amirite?

>> No.25458181
File: 935 KB, 2812x1200, overbought.png [View same] [iqdb] [saucenao] [google]
25458181

>>25456237
It doesn't. No one accepts BTC as collateral and if that become a trend governments would legislate against it. BTC remains the same: dump it on the greater fool before the pump collapses into a big fat dump.

>> No.25458328
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25458328

NOOOO MY HECKIN DEFI WE NEED TO DESTROY BANKS IF YOU DON'T HAVE AN ENCRYPTED FLASH DRIVE IN YOUR CUM SOCK DRAWER WITH YOUR CRYPTO ON IT YOU'RE DOING IT WRONG NOOOOOOOOOOO

>> No.25458354
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25458354

>>25458181
>No one accepts BTC as collateral
lel

>> No.25458469

>>25458181
>No one accepts BTC as collateral

Are you serious?

>> No.25458481

>>25455911
Now pairing this concept with Chainlink staking and realize how FUCKING early you are if you have just ten of those bad boys.

>> No.25458526

>>25458354
>>25458469
No one that isn't a retard. BTC will be cucked soon in any case

https://cryptobriefing.com/u-s-treasury-department-proposal-existential-threat-to-bitcoin/

Brian Armstrong on suicide watch. It's fucking hilarious.

>> No.25458590
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25458590

>>25458526
Dude. You need to read up on DeFi. Literally everyone accepts Bitcoin as collateral.

>> No.25458623
File: 14 KB, 644x155, okex-btc-collateral.png [View same] [iqdb] [saucenao] [google]
25458623

>>25458469
Better than serious, I know how not to ledditpoast AND I can use google. Go fuck your poor self

>> No.25458634

>>25456378
this is some jew ass shit but thanks anon.

>> No.25458638

>>25458590
>DeFi
The same shit backed by nothing that can be cucked a SEC ruling away.

>> No.25458642

>>25457011
Found the nigger

>> No.25458671
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25458671

>>25458526
stay poor

>> No.25458677

>>25458634
You're welcome fren

>> No.25458711

>>25458638
Who is SEC gonna sue? DeFi is open source software. They gonna sue fucking code?

>> No.25458726

>>25456869
it was just example retard

>> No.25458791

>>25457388
>negative equity is a meme

>> No.25459227

>>25458711
>muh code
Useless when you sell and get your gains confiscated because they come from illegal securities and other nonsense. You'll be able to buy amazon gifts and that's it.

>> No.25459264

>>25456378
>>25456869

The part he didn't mention is in these scenarios the property is also producing cash flow from rent which is how you pay the minimum payment on the loan.

Imagine getting a rental with 100K duplex rental with 20% down and a 2.75% mortgage. You can charge $800/month per side(probably more honestly). $1600x12=$19,200. Your initial investment was $20K. You are paying enough to cover the interest of the mortgage payment/insurance etc. It comes to $7000 for the year(potentially less). You rake in $12,200 for the year a 61% gain on your initial 20K. In that year the house went up 3% as well. 103K USD value. Using debt is amazing if you are purchasing assets that produce cashflow. The house could even lose $12,200 in value for the year and you'd still be broken even. Now you take that $12,200 and leverage into another mortgage or just buy dividend stocks, crypto, or something with cashflow. Once you get money things start to become stupid easy if you know what you are doing.

>> No.25459419

>>25456355
take a $50000 stablecoin loan using 3 Bitcoin as collateral, interest rate is about 20%
farm on Curve for 40% APY
Pay off your loan and reclaim your Bitcoin
After one year, you now have 3 Bitcoin and $10k

>> No.25459500

>>25459227
>usdc
>illegal
kys retard

>> No.25459703

>>25459500
>convert shitcoins to USDC
>convert USDC to fiat
>money shows up on your bank account
>"where did you get this money MrAnon? send us proof"
>"dd-ddeffff-ii tt-heter--ussd-c---binaaan-cc--eeaaarhgjuhdgi"

>> No.25459867

>>25459419
what if BTC falls below being able to collateralize such a loan?

>> No.25460045

>using a piece of garbage susceptible to dumping 50% in 1 day as a collateral and to lend
THE ABSOLUTE DELUSION OF CRYPTOTARDS LMAO

>> No.25460203
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25460203

>>25457011
Double cringe

>> No.25460277

Does anybody have any recommendations for a loan platform?

>> No.25460312

>>25456378
Lol, did you hear this from Michael Saylor? Guy blew my mind too. If anyone's interested, this is how the ultra-wealthy build wealth and never pay taxes, ever.

https://www.youtube.com/watch?v=CETdBZIXhPo

>> No.25460348

>>25460312

Timestamp for the not pay taxes part?

>> No.25460496

>>25460277
Second this. Been using Kucoin to lend out but I'm looking for more decentralized ways to lend.

>> No.25460509

>>25460348
1:22:00 or so

I HIGHLY recommend listening to the whole thing though.

>> No.25460761

>>25459703
I dunno if it's even worth arguing with low IQ niggers like you lmao

Stay poor

>> No.25460796

>>25460761
That's not an argument.

>> No.25460824

>>25459867
Then you just cash out or pay back some loan if you want to keep BTC

>> No.25460836

>>25456378
what happens when the price of the property falls?

>> No.25460859

>>25460277
>>25460496
AAVE or compound

>> No.25460909

>>25460796
Stay fucking poor retard. Nobody is going to spoonfeed a dumbass like you

>> No.25460999

>>25460509
Thanks will do

>> No.25461144

>>25456177
>> BTC maxi spotted
https://boards.4channel.org/biz/thread/25458652#bottom