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The implications: You invest the $50,000 into a business or asset to generate revenues and ideally replace the 0.0208333 BTC faster. You could choose a fiat-equivalent payment if BTC is taxed in your jurisdiction but the fiat is still used to buy BTC for the investors. The effective cost of capital varies but overall if Bitcoin is up long term, it can be cheaper than borrowing from the bank. If Bitcoin is down in fiat terms, investors are bought out slower, otherwise they are bought out faster. The partnership is ended either when you run out of BTC (long bear) or the $70K cap is hit (fast bull). Overall, investors get into BTC at a discount to market, with less volatility and you get capital upfront with the opportunity to earn more BTC. Both bear the risk, you more than the investors.
2025-08-22 18:35:43 from 1 relay(s) ↑ Parent 1 replies ↓
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Let me know if I understood this correctly, I put up 1BTC @ $100k as collateral and a pool of investors go into a joint venture with me and lend me $70k, for example. Suppose I want to buy more BTC with it. I take the money and smash buy $50K in BTC. I pay back my partners regularly and if BTC pumps, my pay back time is shorter, if BTC slumps, I pay them back slower...At the end, if I pay back my partners, I get my collateral back... Is that right? How are they getting BTC at a discount?
2025-08-22 19:13:36 from 1 relay(s) ↑ Parent 1 replies ↓ Reply