Collateralized Bitcoin Loans are one of the most underutilized and underappreciated tools that we have at our disposal as long-term crypto investors.
I've talked a few times in other posts about how I like to use these loans and the benefits that they bring to the table in terms of stacking sats and still being able to pay your bills and invest in other things.
In this clip, we cover how this strategy is performing in the current market landscape. With BTC jumping from $16k to $23k, I think a lot of people are curious about the positive performance that we've seen with this strategy.
- Collateralized lending example and follow up
- No margin sweating at these prices
- 31% move from 16k previous price - good for loans with collateralized BTC
- Conceptualization of collat loans - selling at future price?
- Less painful to pay bills with collat loans = pay bills while buying btc
- Cat's spending money with Juno card
- Glitch - Buy btc, take loan, stake, yield, that yield to collat, then than loan can pay bills
- anomad example, difference in vaults and %
- The only barrier is the entry amount, kinda whale games
- Being a onecoiner in cold storage < putting it to work with loans - low liq though, otherwise might bite you in the ass
- Counterparty - wBTC no BTC - the only risk is you when btc, but wbtc has more risk
- Example of previous stress tests - calculated risk to be comfy
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▶️ 3Speak
Understand the concept, but way above my paygrade right now as I am keeping things simple still. If you organised the loan at $16K and BTC goes to $40K do you still owe the $16K? Ok watched the video and get it so you are spending your BTC, but the future value as long as it goes up.
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