Starting 4 years ago, I copied Michael Saylor's strategy and have been using debt, CONSERVATIVELY and INTELLIGENTLY, to buy Bitcoin.
DEBT STRATEGY #1
I refinanced my house at a 3% interest rate to pull out equity and buy Bitcoin. x.com
DEBT STRATEGY #1
I refinanced my house at a 3% interest rate to pull out equity and buy Bitcoin. x.com
Example: If my house is worth $100,000, and it is paid off, my bank will let me take out $80,000 (80% Loan-to-Value) of my equity to buy Bitcoin at today's 5-7% interest rates! My debt is collateralized by my house. x.com
Saylor has $4.1billion debt on $40.2 billion worth of Bitcoin which is a 10% Loan to Value! He has ⅛ the amount of debt leverage that a typical real estate investor has and everybody thinks that what he is doing is risky! He has no collateral against his debt. x.com
DEBT STRATEGY #2
I took a second mortgage against my house at a 5.7% interest rate to buy Bitcoin.
Saylor issues convertible debt at virtually 0% interest rates to buy more Bitcoin. x.com
I took a second mortgage against my house at a 5.7% interest rate to buy Bitcoin.
Saylor issues convertible debt at virtually 0% interest rates to buy more Bitcoin. x.com
DEBT STRATEGY #3
I took out multiple fixed rate, non-collateralized, 5-7 year personal loans at 6-12% interest rates and responsibly serviced them with my W2 income.
Saylor issued junk bonds at 6.125% to buy Bitcoin. x.com
I took out multiple fixed rate, non-collateralized, 5-7 year personal loans at 6-12% interest rates and responsibly serviced them with my W2 income.
Saylor issued junk bonds at 6.125% to buy Bitcoin. x.com
DEBT STRATEGY #4
I borrowed against my 401k at a 7% interest rate to buy Bitcoin.
Saylor sells his company stocks (equity) to buy more Bitcoin x.com
I borrowed against my 401k at a 7% interest rate to buy Bitcoin.
Saylor sells his company stocks (equity) to buy more Bitcoin x.com
Saylor is virtually doing the SAME EXACT thing when he issues convertible bonds at 0% interest to buy Bitcoin! x.com
“I SOLD ALL MY CHAIRS”
I sold whatever I thought was inferior property to buy more Bitcoin, including my truck, apartments & rental houses. Bitcoin is far superior to physical property because it is digital & doesn't have the flaws, headaches & costs of physical property. x.com
I sold whatever I thought was inferior property to buy more Bitcoin, including my truck, apartments & rental houses. Bitcoin is far superior to physical property because it is digital & doesn't have the flaws, headaches & costs of physical property. x.com
Saylor and I refinance our debt to pay off, old, higher interest rate debt. We rinse, recycle, & repeat because our assets are appreciating with monetary inflation. As long as we responsibly and conservatively service our debt with our fiat mining jobs, we can do this FOREVER. x.com
Unfortunately I can't use debt to buy Bitcoin every month like Saylor. Normies like me are limited to using debt, INTELLIGENTLY and CONSERVATIVELY, once or twice a year to buy Bitcoin.
Bitcoin has appreciated by more than 100% in the past 4 years that... x.com
Bitcoin has appreciated by more than 100% in the past 4 years that... x.com
Saylor and I started using debt to buy Bitcoin, we can pay off all of our debt, but that would be STUPID because our debt is a fraction of what our Bitcoin is worth. Furthermore, our interest rates on our debt are: x.com
My blended interest rate = 7%
Saylor's blended interest rate = 0.84%
After 4 years, our ROI, after accounting for our blended interest rates, are:
My ROI = 300% - 7% = 293%
Saylor's ROI = 300% - 0.84% = 299.26% x.com
Saylor's blended interest rate = 0.84%
After 4 years, our ROI, after accounting for our blended interest rates, are:
My ROI = 300% - 7% = 293%
Saylor's ROI = 300% - 0.84% = 299.26% x.com
Myth: Debt and leverage is BAD
Truth: Debt and leverage when used INTELLIGENTLY and CONSERVATIVELY are GOOD. How else do you think that the rich get richer and the poor get poorer? The rich use good debt (real estate) to buy assets and become rich. The poor x.com
Truth: Debt and leverage when used INTELLIGENTLY and CONSERVATIVELY are GOOD. How else do you think that the rich get richer and the poor get poorer? The rich use good debt (real estate) to buy assets and become rich. The poor x.com
and middle class use BAD debt (credit cards) to buy liabilities and become poorer.
This is a guest post by @jerimican5445. Opinions expressed are entirely their own and do not necessarily reflect those of Satoshi’s Journal. x.com
This is a guest post by @jerimican5445. Opinions expressed are entirely their own and do not necessarily reflect those of Satoshi’s Journal. x.com
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