All debt is high time preference. But one can attempt to game the system by borrowing against their stack.
To buy a median priced ($412k) home, you would have to sell ~6.15 BTC to own it free and clear. You could DCA the $2000/mo payment to repurchase your corn over 206 months (17.17 years), assuming your average cost stays <= $67000.
Or you could get a 50% LTV loan against that 6.15 BTC @ $67000 ($206025) and pay $1262/month on the home loan. You would also be paying $1262/month on the bitcoin loan (assuming same rate and duration as mortgage, which is a big stretch). However, as bitcoin price goes up, you can reclaim some of your collateral corn from the loan or pay off the mortgage with the increased value.
If the price doubles, you can withdraw 3.075 BTC and sell it pay off both the mortgage and the bitcoin loan, or sell some of the corn each month to make payments on both loans, essentially a ₿CA(?) into your house. The remaining collateralized bitcoin would be "repurchased" from your lender at $67000/BTC + interest premium, which is still a 49% discount to the new price.
Personally, its probably not worth the trouble. Just take out a regular mortgage (or business loan) and cut some corn each month to make the payments. If you still get paid in fiat, you have flexibility to cash flow the payment if there's a significant drawdown.
Joshua
npub1tr…sra7s
2024-10-16 22:36:45 UTC
in reply to nevent1q…h8le
Author Public Key
npub1trj5c2979q69epnvzr9pd2edsq9tgjv4qjjdkwgvv3phfsuz2wus0sra7sPublished at
2024-10-16 22:36:45 UTCEvent JSON
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"content": "All debt is high time preference. But one can attempt to game the system by borrowing against their stack.\n\nTo buy a median priced ($412k) home, you would have to sell ~6.15 BTC to own it free and clear. You could DCA the $2000/mo payment to repurchase your corn over 206 months (17.17 years), assuming your average cost stays \u003c= $67000.\n\nOr you could get a 50% LTV loan against that 6.15 BTC @ $67000 ($206025) and pay $1262/month on the home loan. You would also be paying $1262/month on the bitcoin loan (assuming same rate and duration as mortgage, which is a big stretch). However, as bitcoin price goes up, you can reclaim some of your collateral corn from the loan or pay off the mortgage with the increased value.\n\nIf the price doubles, you can withdraw 3.075 BTC and sell it pay off both the mortgage and the bitcoin loan, or sell some of the corn each month to make payments on both loans, essentially a ₿CA(?) into your house. The remaining collateralized bitcoin would be \"repurchased\" from your lender at $67000/BTC + interest premium, which is still a 49% discount to the new price.\n\nPersonally, its probably not worth the trouble. Just take out a regular mortgage (or business loan) and cut some corn each month to make the payments. If you still get paid in fiat, you have flexibility to cash flow the payment if there's a significant drawdown.\n",
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