TL:DR
Last half of the video I share how you can never sell your Bitcoin or need to pay income tax if you borrow against your assets in the form of a loan. This has been popularized by many in the DEFI and Bitcoin space by laser-eyed shit-talking zealots who will not use DEFI, but the least annoying is probably this video by Mark Moss which is watchable..
In summary (from my Telegram group):
“I finally implemented my BTC accumulation/borrowing strategy, moved into BTC at $104K and borrowed 65% of that value in USD to invest and trade with and invest to create cash-flowing income plus unlocked the capital to hedge my spot BTC position when market conditions present downturns. Yep, you guessed it, to acquire more BTC to repeat the cycle. People said BTC was too large to pump multiples but they were wrong by about 5x. We have become accustomed to an alt season where very crypto is making bank and all I see and hear is people now are out of dry power.
And lastly, the final fact that got me across the line to pull the trigger was not the fact that alt season and ETH is waking up, but the tax implications of never selling your crypto, but instead using it as collateral to borrow USD to invest with at zero interest in DEFI with no third parties. Literally just audited code making a loan to myself. Here is Mark Moss's recent video presentation:
Mark covers the accumulation-only and never sell strategy I discuss in my video in detail.
And secondly, who or which service you decide to use to facilitate your BTC in as collateral and loan out USD is a matter of personal choice. As follows, I have screenshot the biggest peer to peer DEFI lending out there that supports a large variety of chains, etc, which is AAVE.com - however you are dealing with matching of a lender to borrower in a marketplace and I don’t think I need to pay interest nor invite a third party into my financial arrangements:
To sum up my choice as I described in the video was to supply my collateral, lend to myself with no other party outside audited escrow contracts from thestandard.io
Here is an quick explainer video if you want the elevator pitch and the founder is very well known as an OG because I remember him being heavily involved in Bitcoin as early as me when we had MtGox, the DAO hack and ETH’s ICO and all the block sized debates. He also never hypes anything - a highly desirable character trait when choosing a DEFI protocol, even though it is all audited. Sometimes these audit companies are really just a rubber stamp for show as they don’t understand complex smart contract that are cutting edge, let alone being in a position to advise attack surface vectors. Josh Scigala is on record publicly and loudly called out Celsius and BlockFI and FTX for the dumpster-fire security model and centralized garbage that they always were. For gold bugs we got you too with PAXG that has been enjoying amazing returns. So here are some further details:
An interview and understanding the founder:
Silverbacked.
Oh…p.s.
Here is the link to the prisoners’ dilemma key-game from Josh’s company also.
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