I'm really struggling to see the drawbacks. Moss does a good job laying it out in his eBook, and you can download and tinker with the spreadsheet numbers.
You keep your bitcoin, his suggestion is to keep LTV in that 5-20% range to avoid forced liquidation, pay the loan off each year. So maybe you pay 10-12% interest, keep the asset and pay no capital gains, and have an asset that ULTRA CONSERVATIVELY may go up 20-30% per year? The next year you borrow a similar percentage to pay off the prior loan and still have a growing "free cash flow" due to appreciation. And his spreadsheet does take into account heavy draw-down years...and you get to play with those numbers, too.
And going with a multi-sig arrangement with no rehypothetication.
And I'm evaluating this from a perspective of always paying down debt years ahead of schedule. I wanted to sleep better at night vs stress the next payment if I lost my job, etc.
bitcoinbadger / BitcoinBadger
npub1zle…pppa
2024-06-07 16:11:28
in reply to nevent1q…w384
Author Public Key
npub1zleyq5x90ssge0mjf0fquy5dd0n0z3tytqtfddzvgvh0j54e8k2sxypppaPublished at
2024-06-07 16:11:28Event JSON
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"content": "I'm really struggling to see the drawbacks. Moss does a good job laying it out in his eBook, and you can download and tinker with the spreadsheet numbers.\n\nYou keep your bitcoin, his suggestion is to keep LTV in that 5-20% range to avoid forced liquidation, pay the loan off each year. So maybe you pay 10-12% interest, keep the asset and pay no capital gains, and have an asset that ULTRA CONSERVATIVELY may go up 20-30% per year? The next year you borrow a similar percentage to pay off the prior loan and still have a growing \"free cash flow\" due to appreciation. And his spreadsheet does take into account heavy draw-down years...and you get to play with those numbers, too.\n\nAnd going with a multi-sig arrangement with no rehypothetication.\n\nAnd I'm evaluating this from a perspective of always paying down debt years ahead of schedule. I wanted to sleep better at night vs stress the next payment if I lost my job, etc.",
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