Quote from: Cannabijoy on Today at 12:02:17 AM

Quote from: bittraffic on August 01, 2022, 11:41:26 PM

It could be a tragic end when there is a bear market and more than half of BTC value drops. If the lender is not reassuring I guess this will work. Isn't something like this already in a Defi platform?

I wouldn't be getting into a loan if I have BTC. What I can suggest is to keep your coins and when ATH, you sell. That's what you should do and then wait for the bear market to come as it always does. You can do whatever you plan with that fiat.

If I sell Bitcoin once it reaches an ATH, and it continues to rise, I will never be able to recoup my Bitcoin. People sold their Bitcoin when it reached an ATH of $10. Suppose they made a million dollars. If they held their Bitcoin and could borrow against it, they would have $1,000,000 to invest in a business, plus $2 billion in Bitcoin.

Yea the trouble is that you will have to hand over Bitcoin to whomever you borrow the FIAT
from, this means you lose control of that Bitcoin and when the value falls you will have to
give them more Bitcoin to cover the value of the FIAT loan, its like a "Margin Call".

Alternatively you could do what I did twice before and its something most others would
frown upon but it worked for me. Just get a FIAT loan without touching your Bitcoin
and buy more Bitcoin with it. Timing is everything and I have done it 6 months before
the halving then 12 months after the halving sell the Bitcoin you bought to do what
you want or just part of it to pay the complete FIAT loan back.

* of course i cannot guarantee this will actually work just based on fast performance alone!