-multisnips-Biodom, it's not the first time you use the word 'bearish' to define JJG's ladder system. Why would you characterize it so?
I just do not want to criticize too much, to each their own.
you would be able to borrow against btc stack, which M. Saylor keeps bringing up, but not many on WO are listening. Such loans are typically used by high net worth individuals (HNWI) against VTI, VOO, SPY, and other whole or broad market ETFs.
Thank you. You got me thinking, especially about the loan thingy. I'd be glad to know more about that. Any pointers will be welcome.
Fidelity:
https://www.investopedia.com/fidelity-will-accept-bitcoin-collateral-for-cash-loans-5091879Basic rate is high, 4.5%, but i am sure this will go down.
I would be shocked if Coinbase would not do the same soon after the IPO.
Personally, i would never go above 20% LTV, maybe just 10% (in case of our typical 80% drawdown).
The advantage-NO cap gains tax. In fact, maybe deductible interest (or not, hard to say)
Borrowing Against securities (better rates right now):
https://www.schwab.com/pledged-asset-lineLibor is 0.11%, so the best rate is 1.88%.
Say, you've got, hypothetically, $10 mil of VOO.
You borrow $ 3mil. Your interest is 3000000X0.0188=$56400
However, $7mil (remainder) in VOO generates $106400 in dividends. End result-you borrowed $3 mil to do whatever, it effectively cost you nothing (well, a decreased divvy).
That's why rich can have a cake and eat it too, lol
More:
https://www.wellsfargoadvisors.com/why-wells-fargo/products-services/lending/securities-based.htmYes, best rates are for those with lots of assets.
Ret accounts are NOT eligible, though.