Replies (83)
A video would be cool for people
Any ETA you can share on loans availability for TN?
Oh wow this is dope
strike doesn’t re-hypothecate, but you give custody of the coins to NYdig so they can re-hypothecate.
is that right?
no, that’s wrong
A tutorial would be great.
Me with my five dollars in bitcoin:
Strike is a great great tool. Just promise that if the government goes rouge you won’t provide detailed information of your bitcoiner clients/users. 😆😆😆
I modeled this strategy (minus the lending component) backwards to 1/1/2021. Very under evangelized how powerful these tools are you’ve given us.
when fiat go to 0 bitcoin go to 0
when fiat go to 0 my coin still = 1 egg
eat your $hit and die little boy.
I’ve just started working on a parametric model for Bitcoin-backed lending.
The goal is to define key variables: if you want to withdraw an “X” value each year, how much “Y” Bitcoin would be required to refinance that annually—based on dynamic parameters.
At first glance, it looks sustainable. After 20 years, you’d only need to part with a fraction of the Bitcoin you lived off.
I’ll share the details once I’ve finalized and double-checked the key numbers.
The assumptions I’m using:
– 7% annual USD inflation
– LTV increasing from 40% to 65%
– Bitcoin interest rates declining from 11% to 3.5% by 2045
What do you think, @jackmallers?
"Yo, fam! 🤔 Any word on when them TN loans gonna drop? We tryna make moves over here! 💸 #LoanWatch"
And when you decide to get off the debt train In 20 years when Bitcoin stops rising? A significant inflation effect, you have to sell your BTC some day.
I would love a deep explanation of how you see this lending product. I looked into it and it just seems like you end up with ballooning debt which turns me off immediately
you have a billion dollars worth of bitcoin. that's why it makes sense.
Can you help a rifle company based in Oregon to accept payments in Bitcoin?
That’s not a choice he’ll have. All of these centralized apps are a honey pot for dems when they take back over in 2026 and 2028.
Hey. Would be happy to share what I know and talk about options that would fit your needs.
Strike IS a great tool, I DCA with it every week, day, and hour! But, don't leave life changing money on there without a reason... Buy, use as needed fo monthly expenses, and hopefully every time your amount hits a certain (self set) threshold you sweep it to cold storage.
I don't worry about my sats on Strike... Maybe once a month or so, I sweep my balance off, so if I WAS to get my account frozen or compromised it is only the last 1-2M sats I might lose/get frozen. That is where I am comfortable... Your tolerance may be more or less.
Can you please explain what does happen.
As I think it’s important for people to be aware they are actually giving up custody. I don’t think that is very clear to the uninitiated.
the bitcoin sits in an address with us + the partner.
is it not clear you are giving up custody to get a loan? there is no such thing, otherwise. that’s what a collateralized loan is, right?
I'd love a tutorial. But its the fiat side that I don't get. The bitcoin side is easy.
Based on experience of speaking to people who are new. Yes. It’s not always clear to a lot of people. Might seem to silly to you and me. But we have experience on the magic internet money. For many new less tech savvy. It really does seem like magic. And we find ourselves explaining a lot of things we might take for granted as logical. And they really are not clear on the risk model. No silly questions or assumptions that everyone understands it. We meet people where they are. And patiently walk them through it.
IF I CAN DO IT SO CAN YOU…ASK ME HOW ITS GOING IN A COUPLE WEEKS OR MONTHS?? I JUST SUBMITTED MY PAPERWORK TO MY COMPANY TO DEPOSIT 100% AT STRIKE :)
Video tutorial! 👍👍
ah, I understand. yes, one should always do their own research.
all of this is documented in our FAQs and we have on-call/24-7 support for those that have questions 👍
Strike
Strike | Frequently asked questions
Find answers to questions about using Strike, how to buy bitcoin, how to use the Lightning Network, and more.
I WOULD BE HAPPY TO CHAT WITH YOU ABOUT HOW YOU MIGHT DO THIS…THOUGH I AM NOT AFFILIATED WITH STRIKE I DO ACCEPT PAYMENTS FROM MY RESIDENTS IN BITCOIN
WTF
1 BTC = 1 BTC
I don't understand this! If you keep buying bitcoin and increasing your loan then won't you eventually have to pay your loan back and won't this happen at the worst time? I'm thinking that the this could hurt if someone can't afford a big drop in price.
yes, I can’t speak for other people’s risk management, only my own.
i only borrow against a small percentage of my stack and i refinance the loans so im never paying back the principle by having to sell BTC or anything
This is genius 🧠
Some me the cheat sheet kid ✴️🪽
The Capital expands at a faster rate
don't you have monthly payments to pay back your loans? where does that fiat come from?
no, I use Payment At Maturity. i don’t owe money until the end of the loan
I still don't understand how you pay back the loan. You would have spent all that fiat for living expenses.
So then you need to sell BTC in the end.
Can you roll these loans over at the end of the term? If so, when is the interest and principal due?
no, I refinance the loans. i’m buying BTC with all of my paychecks and BTC averages 30%-60% performance
That’s awesome! Thank you!
That would be awesome! Thank you so much!
Seems like the whole point is that yes, you can roll it over. But, as with any refinance it isn't guaranteed. Eventually, after several years of refinancing and a sufficient amount of compounding interest has accrued, probably during a market downturn when the collateral value gets a little too close to the balance due, that's when you'll be politely asked to pay the piper.
ok.
of course we know we are giving up custody to take a loan. we aren’t that retarded.
but where and how the collateral is held is an important risk factor. and without the verifying status of funds on chain, it’s a trust me bro situation
Yes sir a tutorial would help spread the message 🫡🧡
that CAGR looks to be dropping off a cliff quickly
With a loan, the taxable event is postponed, not avoided.
How do you avoid the annually refinanced loan compounding by 10% (or whatever the rate is) each year). Eventually you pr your estate will have to pay off an enormous loan. This is only really possible or sensible if you have a very large stack of bitcoin.
I’ve been working on getting a STRIKE business account. How many rounds of questioning should I expect before they allow me to do so? It’s for a new business, a start up, self funded. It’s taking longer than expected and I don’t know why they wouldn’t ask me all the questions they have all at once. Is this normal?
Strike is needed in Canada
Correct me if I am wrong, but this assumes that there will always be someone who expected to give you a loan on your btc.
And if you cannot refinance, you will have to sell, then tax hits.
🤙🤙🤙
Taking a loan backed by bitcoin may backfire in some countries with wealth tax and obligation to report crypto assets.
Jack, does strike have a way to deposit physical checks with a phone like banks do? As farmers we get a lot of checks written for our products. If strike was able to deposit these into an account I would ditch the bank completely!
Thanks
You sound like Mashinsky with his magical flywheel. So every year you refinance the old loan with a bigger new loan. You know the music won't stop because it is your own company lending you the money, and you have a huge stack of BTC to survive large drawdowns. For an average Joe with small BTC stack your strategy is very risky. You just shill your lending outfit to degen folks.
strike works best the more senior you are then. Every session feels like an audit.
Would I fk rely on it doing its job as a daily driver. Total capitulation to the regulator.
Someone knows if a similar model with bitcoin backed loans is possible in Europe?
Until we can pay on lightning or ecash everywhere, you should consider carrying some amount of physical cash. Privacy is important. If we don’t continue to use cash we may lose the option more and more.
You could have less than 0.1% of your savings in physical cash, lose a small amount to debasement, and make a huge privacy gain.
Bill pay with strike using bitcoin is great by the way. 👍
Yes please
So you go to strike, take a bitcoin backed loan, choose pay at maturity, and at some point (whenever you want?) just simply refinance the loan, so that you can kick the can of paying at maturity down the road?
Is this what you’re saying? 🧐
Is refinancing a feature that is built into strike already? I haven’t seen any screenshots of this or anything
Plz explain to us like we are children.
“Special” ones even
I’m sold!
Yes please make the video tutorial.
Doesn't the loan compound forever? What if loan gets enormous and has to he paid off, that would result in a taxable event? (Sell BTC, pay loan). Thank you
That’d be great—just make sure to include how to navigate a bear market too. I think if someone can make it through a bear market living on Bitcoin, it really boosts their confidence to stay off fiat.
Thanks to you I have joined the negative fiat club!
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Unreal Jack mate. Definitely pathing the path I have been listening and watched those earlier videos. I know you said debit/credit cards are not a priority and the process of saving in bitcoin borrowing in dollars but… the Strike marketing and ease of use I think maybe a missed opportunity. Even as alongside reward points old school credit cards (I get it), not to mention fees Strike would acquire more bitcoin I can’t imagine why you would pass up that opportunity. I think with all the products and services you offering if you keep the maxi rep, self custody and lightning options no reason to use any other platform for anything and reporting would be a lot easier for everyone…
hey -- we want to send you a test zap, but couldn’t find a NIP-05 or ⚡ lightning address on your profile. u can set one up for free on rizful
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... then pls reply here and we will do a test zap.
Firefish.io
So at the end of the 12 months you have the option to refinance ?
How does work?
That’s cool as fuck, I want to do something similar
Can you walk me through the mechanics of this? Or direct me to where you’ve already done so.
My life costs about $80k per year. So assuming I am conservative, only utilizing 25% LTV, I’m assuming I would need approximately $325k worth of BTC. However, assuming I roll these loans, what percentage year over year gain and/or additional investment would be required to repeat this yearly?
I’ve been 💯 BTC only since 2018… I think it’s almost a requirement to be a cyber warrior or at the very least a cyberPUNK to be able to comprehend how to navigate life with BITCOIN!! Call it Survival Evolved 😈😈🏴☠️
View quoted note →@jack mallers is there a way to do it with debit cards ? I don’t like credit cards .
Thanks for the feedback
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