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COLATERAL EFFECTS OF BTC LOANS ON YIELD EXPANSION

Discussion in 'The Kruse Longevity Center' started by Jack Kruse, Feb 9, 2021.

  1. DebraGM

    DebraGM My Quest for True Health

    I’m trying to maximize my position by utilizing this service. If one had a good position of Bitcoin in BlockFi, would it be wise to take a loan to buy more bitcoin and refinance in a year when the price has risen as well as your Bitcoin? It seems like the answer is yes. I’m having trouble visualizing the end game. When the price of bitcoin goes up, collateral required is then returned, the new loan pays off the old loan, and you now have a new loan for the same amount with less collateral, but you have a greater position in Bitcoin? Can you keep doing this as long as Bitcoin is going up in value? In the end, you have to have the cash to pay off the loan or sell a piece of coin...but that also seems to make sense if we are in a super cycle. I’m feeling like I want to go for it. I’m just not positive I have all the details correct. Anyone want to walk through an example?
    Any thoughts?
     
  2. DebraGM

    DebraGM My Quest for True Health

    I’m interested in what refinancing looks like in a year when the loan is due and bitcoin has increased in price. If I buy bitcoin with the loan it’s a win win correct? I see it but I would love somebody to let me know they see this too!!!
     
  3. DebraGM

    DebraGM My Quest for True Health

    How do we get in on that? I would love to join!
     
  4. Janek

    Janek Gold

    Did you join real estate party in 2008? Wasn't narrative exactly the same? Buy bigger house, wait till it increase in value, take loan on it, buy bigger house... rinse and repeat. I'm not sure it ended well.
     
    caroline likes this.
  5. DebraGM

    DebraGM My Quest for True Health

    I don’t see Bitcoin in a super cycle the same as real estate. BlockFi loans are over collateralized. If the price falls and affects LTV, you add fiat or they liquidate necessary bitcoin. That’s extremely unlikely to happen this year. Real estate cannot be sold easily and in encumbered like bitcoin.
    I think, if you’re playing with house money it’s a good idea.
     
  6. JanSz

    JanSz Gold

    Seeing the (correct) big picture helps.
    .
     
    caroline likes this.
  7. Jack Kruse

    Jack Kruse Administrator

    You clearly do not understand what is afoot right now. Nothing in real estate mimics what BTC has done for a decade.
     
  8. Jack Kruse

    Jack Kruse Administrator

    Rather than a base for upward mobility, the great cities have largely become magnets for those who are already well-to-do. Bitcoin is and will continue to replace the 2000 year trend that people will want to live in these cities. It will solve the 5G problem of the inverse square law.

    Today, few working-class or middle-class families can now afford to move to places like Paris, London, Tokyo, New York, San Francisco. Many former residents, like Chicago’s black middle class, have left to make their future elsewhere. Owning BTC makes this transition very easy because owning BTC is like having a second job where you make more than your first job pays. Today, cities are prisons for patients. Many who still work in those cities are forced into intolerably long commutes. As the middle class dwindles, it leaves behind a marginal urban population who depend on the city for a livelihood but often can barely get by because the city steals their wealth.

    Moving away from the city and plugging into the BTC network immediately is the new yellow-brick road.
     
  9. Jack Kruse

    Jack Kruse Administrator

    If your health is quantum your money should be crypto. Have you got your Bitcoin card yet? My rewards are mounting. I hope everyone in my network realizes these card rewards are free hard money powered by BTC! Become decentralized and bank on yourself! https://blockfi.com/credit-card-waitlist/?r=21gNy
     
  10. Jack Kruse

    Jack Kruse Administrator

    Martina likes this.

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