Community Trust ScoreVerified
Bitcoin Reasoning by Community Members: Bitcoin stays above $1,000,000 forever; You can lend 0.5 BTC for 6.25% APY; You can survive on that 6.25% APY forever, because Bitcoin continues going up in fiat terms. Would you do that?
Practically nothing continues to go up forever. What makes you so sure BTC will even reach 1m?
Why does everyone want BTC to be their lifeboat to be never working again? People, please go find a job you don’t hate so much.
I don’t think you will be able to get 6.25% interest rate on Bitcoin. That is what it was around in early 2021 and it is significantly less now. Maybe I am wrong but my gut is that interest yield on anything won’t be great.
Too much tax. Borrow against BTC and keep borrowing against yearly to pay previous loan. This way you never pay tax, you never sell your bitcoin. This only works if bitcoin continues to appreciate 150-200% PA and should you only borrow 5-10% of your collateral. It won’t maintain that growth rate long term.
$250K at 6.25% APY is an income $15,625 per year. Could you live on that?
No, but as someone else said, it would be an extremely helpful supplementary income and I would happily take those risks.
As someone else said, it would be an extremely helpful supplementary income and I would happily take those risks.
If Bitcoin is a million per coin – Dollar is getting pretty worthless. So, no. I don’t want to lock up my valueable bitcoin in a lending scheme to get fiat, not at that point.
Bitcoin can easily reach 1 million per coin without any inflation – whatsoever. It is a relative metric. With inflation, that number could be 10 million or 100 million per coin. But that is not the question.
The World of $1,000.000 bitcoin is also the world of $2000 oil, $60,000 iphone and $600/month spotify, $400 eggs and $9000 local flights LOL.
Is there not reason to believe that you will be able to get 6% interest on your bitcoin at that point or even 4%?
Well, unlike the dollar, it will always be a scarce asset. Therefore, I would think it would command a premium interest %.
Only works if fiat is still the primary transacting currency. Banks lend money to preserve purchasing power by receiving back capital + interest. If BTC becomes standard then fiat loan interest rates would be too high for this to work – if fiat is being rapidly debased.
Most BTC maxis promote HODL and borrow against your BTC narrative, but want BTC to become the global transacting standard. Their strategy only works if BTC is only a store of value. If BTC becomes transacting standard, fiat debasement is too fast and interest rates would be too high.
Fix the money. Fix the world. Bitcoin is hope.
