WARNING: There are a number of scammers who are using my image and channel name to try to connect with my viewers on WhatsApp and other platforms to scam them. Just so you know, I will never refer you to "my personal trader" or try to connect with you personally to sell you something. I am banning these scammers as quickly as they pop up, but if you could report them to UA-cam, it would be very helpful. You can always recognize a scammer by clicking on the image and seeing how many videos he has. All of these guys have zero videos, while I have hundreds.
😂 imagine being in debt for a educational where you learned very little when you could just look up financial information on UA-cam for free. Wake up people!
Matthew I don’t know what the people of UA-cam have done to deserve you, your information is more valuable than gold and maybe even comparable to the value of Bitcoin! Thank you 🙏
are you really putting some/all your BTC in it? how does it really work? spoon feed please some pointers. i cannot lose this bet. im sure it was explained, but never seen anyone talk about this in my circle. what are the juridical risks, smart-contract risks.
The value of this content has the potential to be life altering. Matthew is showing everyone exactly what all wealthy people do with assets. How to keep your money and pay very little tax.
I watch each of your uploads 3-4 times for 3 reasons. 1. I love your voice 2. The content is brilliant and I want to ensure I absorb and remember all of it 3. I want to increase your UA-cam viewing time figures.
We pay over 60% of our income in taxes (Czech Republic), so without it I would already have a house, still be a millionaire, running business and perhaps even employ few people. I know the taxes are used to the benefit of all - the problem is there is so much misallocation that most people will never see any of that money. Such high taxes don't even make sense because >50% taxes mean that I am primarily working for a state, then for myself, but I have none of the benefits a state employee has. I am not even using most of the services provided by the state and I would rather keep my money. This way I have virtually no savings and have to support welfare of other people while being forced to need social security I would not need if they haven't taken my money in the first place... The funniest thing is that no one even knows where all the money goes because the government still does not have a full inventory of the spendings. So anyone advocating any taxes don't have a point because all we know is that X billions go to "ministry of culture" but no one knows how is it distributed from there and what are budgets of dozens of state-affiliated organizations. This is not only inefficient but inept because we don't even know hos inefficient it is. I believe this era will look as crazy as when having a gun and couple slaves was a norm.
Love it! This is why the rich are rich. And people get so angry when the media says the rich don't pay taxes. It's not that they don't pay taxes so much as legally avoiding them and letting the middle class pay taxes the middle class and poor take out debt to finance liabilities (fancy cars, your home). This is exactly the video i was looking for. Cheers!
I can’t believe this is FREE! Such value you’re offering, Matthew! You perpetually have my mind thinking regarding how to smartly use my BTC. Thanks doc.
I specifically searched for a video like this because I knew you would have made one -- sure enough you made the video I wanted to see now, over 3 years ago. Super quality education, as always!
Seeing the 2021 expected price on this video as of today is sure astonishing. I was there too, I figured it was inevitable, so I'm not criticizing. I love your videos. Just a reminder that even the people one respects most in this space are not clairvoyant, and to be ready to hodl through all the highest highs and deepest despairs.
I love your videos! I got to this same conclusion as well: I was thinking on selling my Bitcoin around 2024, 2025 when I'm planning to move to a more developed country. But then I thought, 4 or 5 years from now, Bitcoin will be way more valuable and more mainstream, and taking a loan with Bitcoin as a collateral is gonna be way easier than today!
This channel is gold .mind the pun ... I've listened to this video about 5 times now ... I'm thinking my Bitcoin strategy everyday....this channel is great ...keep the videos coming .many thanks , hodl!!
This is still a good idea, even if you are in a country where you don't have to pay taxes on your Bitcoin. You don't decapitalize yourself that way. You always keep some or all of your leverage. Thanks Matt, really cleared things up nicely.
exactly I live in a country that has zero CGT on investment gains and it still make sense to take out collateralised loans because of opportunity cost of selling BTC
Love this! I did a small trial run using Celsius just to see how the process was so that when I'm ready to take out a large loan I will be comfortable with the process. You better believe the $ I borrowed went right back into more Bitcoin.
Hindsight is halirious isn't it? June 2022! Bitcoin Under 30k. It's all good, diamond hands and all that! Your ideas, theory and practical thinking still adds up and makes sense to me. I really appreciate you and your videos are excellent!!
I just re-watched this video this morning - thanks again for doing such a thorough explanation of the mechanics of this strategy. This is absolutely a winning play-book (and argument) for why BTC is the most superior “coin” to own. None of the others have this opportunity.
Great video thanks. I'm starting to get excited about life again. I work 50 hrs a week at the moment and because of your videos, quitting work next year is looking possible. Bitcoin is freedom
Cool to note that *before* the Celsius trouble, Mathew warned to only find lenders with a multi-sig setup and specifically against Celsius for that reason. So awesome!
Your example of a 10,000 loan is actually spot on. The loan calculator on blockfi's website seems to have an unlimited range. After making an account and giving away lots of private information it was revealed to me during the loan application process that I needed to borrow at least 10,000. It hard being "poor" I don't have 20,000 worth of BTC. I guess I will have to sell some BTC tomorrow to fund my car repair.
This is wonderful info!!! On a smaller scale Coinbase offers BTC collateralized loans up to $20,000 with 8% interest and 12 months to pay it off. Ive used it twice.
i plan to do this and agree that there probably wont be anymore 50% drawdowns. I totally see why some people think Bitcoin is a ponzi scheme. It just is so surreal how few people understand how any of this works. I worked for years and didn't understand how bad the infation was
6 wks ago I knew nothing about bitcoin. Thanks to this channel, I've convinced my fiancee to make great investments into our future. Also taking some courses on the website. Grade A + !
Thank you for all the great insights. Truly one of the most well intentioned and helpful channels on this platform. You have helped us stay the course through out all the FUD and helped us invision the possibility of a bright future. Sincerely thank you!
I am extremely offended about your words on government research. I am the lead scientist of the quail reproduction under influence study and I truly believe this is one of the most important studies humanity has ever seen. It is the fruit of my labour after a PhD in quail pscyhology and 35 years of dedication to my craft. It's my life's purpose and I am very proud of the results. Money well spent.
Wait... I'm only 30 seconds in but this is making me think of Robert Kiyosaki when he said he never sells his assets, (cause when you sell for gains, you pay the IRS, Tax) and I was thinking SO HOW DO YOU LIVE, MY DUDE?! Idk, it just made me think of that. Makes me think he's essentially living such a high-life because he is using his assets, as debt, in a sense (form of loan off his asset(s)!) IM JUST SPIT BALLING HERE but this makes me think. I'm already hooked, will finish watching to see if I'm at least even remotely correct.
Great video! Another option (perfect for a bull market) : you deposit btc and take a loan to buy more Bitcoin. I used the b2x loan by ledn. In my example : deposit 0.25 Bitcoin, get a loan for 16.000$ and buy immediately another 0.25btc. Doubled the btc.
Hi, Matt! I've been watching your videos for over a year now. The info is invaluable, and your presentation is extremely easy to follow and comprehend. Thanks so much!
Hey dude really nice. I like your way of explaining things!!! Next video with apps to do this? I don't really trust any to leave all my BTC, that's why I have 8 different accounts to mitigate the risk of bankruptcy or whatever in some accounts!
I would really appreciate a updated video on this subject. I always find myself watching this video and how brilliant it truly is. My only concern would be what if unchained capital disappeared etc... please touch base on this soon and I would be forever grateful. I always look forward to your videos and hope one day to join the university. Thank you Matthew, you are amazing.
A conservative approach would be to split your Bitcoin into 3 pots. 1/3 stays in cold storage outside the system as security for a rainy day. The next 1/3 is used as collateral for fiat loans. The final 1/3 is loaned out at interest to generate income in BTC. If you have a larger amount of Bitcoin you can use the fiat loans to build a real estate portfolio. The real estate offers tax advantages to offset income taxes on the income generated from loaning out BTC. You can also use the surplus income from your real estate investments to buy more Bitcoin. Using this approach you would never sell your BTC and constantly be accumulating more. It would also be smart to use fiat loans against BTC to pay for your living expenses and taxes. An easy way to do that is to pay for everything with cash back rewards credit cards and then use fiat loans against your BTC to pay them off every month. You could also buy a house with a BTC loan and then get a HELOC against it to pay for expense you cannot pay with a credit card. Again, pay off the HELOC with a fiat loan against your BTC every month I would only want to spend my BTC if I received a very signficant discount for doing so. Even then my strategy would be to use a fiat loan against my BTC to buy enough new Bitcoin to make the purchase. If you spend it immediately you should be able to avoid significant capital gains taxes on it if the price doesn't fluxuate very much between the time you buy it and the time you purchase your product or service.
Great video. People wonder why Trump etc. don't pay taxes..... Here you go! This is the secret of the 1% thanks for sharing with the masses. I also just purchased your Bitcoin book.
Is there sufficient incentive for the loaner though, because they could have, instead of loaning you money, use the money to buy bitcoins themselves? The sustainable interest rate should always be somewhat higher than the real inflation rate adjusted for dollar depreciation, making it no better/worse for the borrower than selling bitcoin
Hey Matt. would be great to see an update on this one. Any changes coming to the industry that you may be able to buy a house or live off your BTC without ever selling it?? Thanks!
Excellent video. In a smaller scale I have already started using this approach and will eventually use it to retire and live off my bitcoin gains using loans while keeping all my crypto to pass on to my children to use the same way.
This is good but a very long winded explanation of how to borrow money at a lower rate than the asset you are leveraging. If you borrow against your house at todays rates of 6% (amortized over 30 years, a term you cannot get against BTC) and buy BTC that conservatively appreciates 20%/yr. You are netting 14% return total. That is a doubling in 5 years. SO pretty attractive IF... you can withstand the volatility of BTC over the next 5 years.
Matt so you'd only pay the interest back to unchained and when the loan comes to term, what if unchained doesn't let you roll your debt? Will they just liquidate your collateral for the monies owed?
You can always try to take out a loan with another service/person if Unchained does not allow you to roll the loan. If that fails, yes, they would sell enough of your collateral to pay back the loan, and you would get whatever was left over. This is one of the risks. But Unchained is in the business of making loans, so there's no reason they would refuse you, as long as you had enough Bitcoin collateral. They want your business for the origination fees.
In my experience Credit card loan if not paid goes to collections agencies. Wait 7 years here in FL statue of limitations after that your start over. Apply new credit cards. Even your credit scores goes up to upper 700 like mine. Student loans though you can’t get out of.
If the bitcoin price stays the same or goes down a bit over the life of the loan, how do you use the same bitcoin you originally used to take out a loan, to then take out another loan to pay off the first one? Wouldn't the servicer tell you that you can't use the same bitcoin that's locked up for the first loan, to then take out another loan?
Yes! Great minds think alike. If you live a modest lifestyle say $3k a month you could borrow $3.5k pm lump sum over 3 years and then use extra $500 to service interest. Then when principal is due after 36 months just roll it over.
Thanks Matthew for making these videos and reminding us of what is important in these times so we don’t sell our BTC. This topic is on many minds and I know my partner does not understand and wants me to sell cause I am in great profits.. I know you are against this but I have been trading ETC to gain more BTC. I just want to own as much BTC in this cycle to HODL. Thanks for all you do !
Do you think it’s better to take a collateralized loan on Bitcoin when it’s at a higher price or a lower price? The risks are margin call at a higher price but you get a larger loan
say you only wanna sell BTC at its supposed peak in order to gain profit & also accumulate more in anticipation of an 85% drawdown. is there a way to take a loan & use it to buy more BTC after a big drop? or will it just result in getting margin called?
This is some of the important content on YT . Some will not realise the significance of BTC until it is too late or never even think about BTC in this way . This type of finance will become more and more popular and once mainstream people will start accepting BTC / other cryptocurrencies as payment and cut out FIAT as much as possible. Don’t forget peeps as long as we’re using FIAT we are fuelling our own demise , funding wars and funding dictatorships . 🇬🇧😇
Hey Matthew! Great and informative content! A quick question: While the loan is not taxable, what happens if at the end of the loan term, you simply let the collateral be kept. Is the loan then treated as taxable, as if you had sold the asset? I realize this is not ideal or smart, but just curious about the whole process.
If I’m not mistaken, the 2nd loan pays off the first loan, and by paying off that first loan, you get your Bitcoin back from that first loan. Rinse and repeat from that point on. Correct me if I’m wrong tho 😅
Great Channel. It would be Epic if you actually took out a loan on one of these crypto loan platforms. A real step by step tutorial would level you up in this realm. Your heading in the right direction so far. Keep it up.
Coinbase offers 30% LTV BTC loans at 8%. No multisig, but I tend to trust them from a liquidity perspective over some of these other new lenders out in the market.
What happens if Coinbase is hacked? Their insurance coverage will not cover all accounts if there is a big enough hack. Then your Bitcoin is gone. Also, they probably rehypothecate your Bitcoin.
I may have missed it. Have you any opinion on borrowing against your BTC to buy more BTC? It seems logical to me near the beginning of this ball run. It's very similar to what Saylor does.
Thanks for posting this video that steps us through the idea of borrowing against Bitcoin to buy things. I'd heard of doing this but I wasn't clear on how to do it. So now I think I get it.
If you buy a rental house to cover your loan, you will NOT have to pay tax in the income from that rental house, because you can depreciate the building over 27 1/2 years, and this effectively means your depreciation will cover all the profits over the mortgage payments. Real estate has some VERY tax advantaged rules. :D You also said near the start that mortgage loans would have a margin call if the home value went way down. This shouldn't be the case, and you corrected it later in the video, when discussing rental property.
I'm really grateful for this comprehensive video! You not only cover why one should never sell their crypto but also mention institutions that offer crypto asset lending. Thanks for being so detailed! Could you possibly make a video discussing whether it's still wise to invest in real estate given the rising value of assets like BTC? Also, why not borrow to buy more BTC?
I would not be comfortable leveraging Bitcoin at any level. A quick temporary spike down could completely take you out, even if the price recovers quickly.
@@danielleprendergast But borrowing to make diversified investments, for the most part, although he does mention you could just blow it all. But if you borrow against bitcoin to buy more bitcoin, you can't borrow or sell that extra bitcoin at a good price in order to save yourself from a devastating margin call, or just a decline across multiple asset baskets at once.
@@dingfeldersmurfalot4560 yea but if you are borrowing against a small portion of what you own, and have calculated the numbers...for example lets say bitcoin goes to 10k...do I have enough to post as collateral? yes...
Amazing and thorough video as always, Matt. This is the info I was looking for. I am so hopeful for my financial future and you have helped play a part in my new ability to actually be free one day. So thank you.
Hi MC, you always Say please ask a question in the comments, so here is mine; If there are 3 Key holders when you borrow off your BTC, It needs two tonmove the Bitcoin.... But Who would be the third party holder?
Also can you have more hypothetical scenarios so that the inflection point of when it makes sense to take capital gains or keep taking loans (Bitcoin goes up this much or down this much, interest rate is a b or c, rental rate is a b or c) is more visible
These loans are overcollateralized-- which means maybe you post $100,000 as collateral and then borrow $20,0000. In this scenario, Bitcoin can still fall 80% and you will still have the 20k to pay back the loan. Obviously losing that 80k will hurt, so this is not a risk free game.
Amazing video, as you talk I type in google drive my plan as I enter my mid 20's next year ! This is very logical and opens up new ways to see life. Thanks a lot your videos will change my life one day.
WARNING: There are a number of scammers who are using my image and channel name to try to connect with my viewers on WhatsApp and other platforms to scam them. Just so you know, I will never refer you to "my personal trader" or try to connect with you personally to sell you something. I am banning these scammers as quickly as they pop up, but if you could report them to UA-cam, it would be very helpful. You can always recognize a scammer by clicking on the image and seeing how many videos he has. All of these guys have zero videos, while I have hundreds.
Thank you for the heads up as that just happened to my comment I made
⁰⁰
😂 imagine being in debt for a educational where you learned very little when you could just look up financial information on UA-cam for free. Wake up people!
years from now, people will look back at this video as the greatest piece of financial advice in history
Thank you, Derrick.
greatest piece of *not financial advice 😉
Totally agree!
@@TravelingMissDsomeone should make 10hrs video about this subject alone. to go in-detail. devil is in the details.
@@cubertmiso That's what a CFA/CFP who knows crypto is for.
Matthew I don’t know what the people of UA-cam have done to deserve you, your information is more valuable than gold and maybe even comparable to the value of Bitcoin! Thank you 🙏
Thank you for the kind words.
DUDE! This is the kind of financial info I wish I learned years ago. It's not just a btc thing but how finance works. Thank you.
Correction: How Fiat works.
If we stop using devaluing currencies, this system will stop working.
are you really putting some/all your BTC in it? how does it really work? spoon feed please some pointers. i cannot lose this bet. im sure it was explained, but never seen anyone talk about this in my circle. what are the juridical risks, smart-contract risks.
Get dumped on noob. lol.
The value of this content has the potential to be life altering. Matthew is showing everyone exactly what all wealthy people do with assets. How to keep your money and pay very little tax.
True, this is an awesome life money hack never taught at school
@@MaKsPuA They can never teach these things in school-- they want to keep the population unaware of these tricks.
@@Bitcoin_University yes of course, but glad that UA-cam exists and people like you share this kind of content.
More people need to hear his teachings. I am surprised that the UA-cam algorithm is not propagating it to more viewers. I smell conspiracy :)
Loved it!! Such a breath of fresh air.
I watch each of your uploads 3-4 times for 3 reasons.
1. I love your voice
2. The content is brilliant and I want to ensure I absorb and remember all of it
3. I want to increase your UA-cam viewing time figures.
Thank you!
It is because voices coming from the lower body part (closer to the heart) are more thrustworthy than those coming from the upper part (mouth only)
NPR VOICE 😂
We pay over 60% of our income in taxes (Czech Republic), so without it I would already have a house, still be a millionaire, running business and perhaps even employ few people. I know the taxes are used to the benefit of all - the problem is there is so much misallocation that most people will never see any of that money. Such high taxes don't even make sense because >50% taxes mean that I am primarily working for a state, then for myself, but I have none of the benefits a state employee has. I am not even using most of the services provided by the state and I would rather keep my money. This way I have virtually no savings and have to support welfare of other people while being forced to need social security I would not need if they haven't taken my money in the first place...
The funniest thing is that no one even knows where all the money goes because the government still does not have a full inventory of the spendings. So anyone advocating any taxes don't have a point because all we know is that X billions go to "ministry of culture" but no one knows how is it distributed from there and what are budgets of dozens of state-affiliated organizations. This is not only inefficient but inept because we don't even know hos inefficient it is. I believe this era will look as crazy as when having a gun and couple slaves was a norm.
Sad my brother Czech. Yes, you are a slave to gov!
I watched your first BTC loan video and shared it with someone and they got a BTC loan! Well done!!
Love it! This is why the rich are rich. And people get so angry when the media says the rich don't pay taxes. It's not that they don't pay taxes so much as legally avoiding them and letting the middle class pay taxes the middle class and poor take out debt to finance liabilities (fancy cars, your home). This is exactly the video i was looking for. Cheers!
This is hands down one of the best videos ive watched on the internet
Thank you, Steven.
Going to download this in case the UA-cam gods want this gone. Sir, this video was an amazing service to those willing to listen.
I can’t believe this is FREE! Such value you’re offering, Matthew! You perpetually have my mind thinking regarding how to smartly use my BTC. Thanks doc.
Pay it forward, my friend.
I specifically searched for a video like this because I knew you would have made one -- sure enough you made the video I wanted to see now, over 3 years ago. Super quality education, as always!
Seeing the 2021 expected price on this video as of today is sure astonishing. I was there too, I figured it was inevitable, so I'm not criticizing. I love your videos. Just a reminder that even the people one respects most in this space are not clairvoyant, and to be ready to hodl through all the highest highs and deepest despairs.
I love your videos! I got to this same conclusion as well: I was thinking on selling my Bitcoin around 2024, 2025 when I'm planning to move to a more developed country. But then I thought, 4 or 5 years from now, Bitcoin will be way more valuable and more mainstream, and taking a loan with Bitcoin as a collateral is gonna be way easier than today!
Most other countries won't tax it, so you'll be safe once you've been out of the country for a year.
This channel is gold .mind the pun ...
I've listened to this video about 5 times now ... I'm thinking my Bitcoin strategy everyday....this channel is great ...keep the videos coming .many thanks , hodl!!
This is still a good idea, even if you are in a country where you don't have to pay taxes on your Bitcoin. You don't decapitalize yourself that way. You always keep some or all of your leverage. Thanks Matt, really cleared things up nicely.
exactly I live in a country that has zero CGT on investment gains and it still make sense to take out collateralised loans because of opportunity cost of selling BTC
This video could literally save people millions of dollars. Thanks so much.
Man. Matt. You make the best videos. I appreciate you so much.
Thank you! I'm also lucky enough to have the best audience around.
@@Bitcoin_University ... your wisdom is very much appreciated.... top of the day to you Sir ...
Absolutely 👍
“With your taxes you paid for some cutting edge research” 😂🤣😂🤣
Love this! I did a small trial run using Celsius just to see how the process was so that when I'm ready to take out a large loan I will be comfortable with the process. You better believe the $ I borrowed went right back into more Bitcoin.
Yes, I'm really glad I saw this one because it helped me to game out how I may actually use BTC three to five years from now
Hindsight is halirious isn't it? June 2022! Bitcoin Under 30k. It's all good, diamond hands and all that! Your ideas, theory and practical thinking still adds up and makes sense to me. I really appreciate you and your videos are excellent!!
I just re-watched this video this morning - thanks again for doing such a thorough explanation of the mechanics of this strategy. This is absolutely a winning play-book (and argument) for why BTC is the most superior “coin” to own. None of the others have this opportunity.
Thanks!
Thanks so much for your support!
Doge +180% and XRP +80% in the past week. The two best preforming coins. No comment other than this is a crazy market.
i had to come back and watch this video for a third time i just want to make sure i understand all of this
Great video thanks. I'm starting to get excited about life again. I work 50 hrs a week at the moment and because of your videos, quitting work next year is looking possible. Bitcoin is freedom
Bitcoin is indeed freedom-- well said.
celsius actually has a 1%APY interest rate on the loan if you back it 4:1 (not multisig tho..)
I’m from a he future- ouch
Cool to note that *before* the Celsius trouble, Mathew warned to only find lenders with a multi-sig setup and specifically against Celsius for that reason. So awesome!
Your example of a 10,000 loan is actually spot on. The loan calculator on blockfi's website seems to have an unlimited range. After making an account and giving away lots of private information it was revealed to me during the loan application process that I needed to borrow at least 10,000. It hard being "poor" I don't have 20,000 worth of BTC. I guess I will have to sell some BTC tomorrow to fund my car repair.
This is wonderful info!!! On a smaller scale Coinbase offers BTC collateralized loans up to $20,000 with 8% interest and 12 months to pay it off. Ive used it twice.
Yes, this was great but they just continued it in 2023. Is there another place you like now? Every place I'm seeing is minimum 14% interest.
i plan to do this and agree that there probably wont be anymore 50% drawdowns. I totally see why some people think Bitcoin is a ponzi scheme. It just is so surreal how few people understand how any of this works. I worked for years and didn't understand how bad the infation was
6 wks ago I knew nothing about bitcoin. Thanks to this channel, I've convinced my fiancee to make great investments into our future. Also taking some courses on the website. Grade A + !
That's wonderful to hear, Scott. Wishing you and your fiancee many happy years.
Thank you for all the great insights. Truly one of the most well intentioned and helpful channels on this platform. You have helped us stay the course through out all the FUD and helped us invision the possibility of a bright future. Sincerely thank you!
I appreciate that!
Brilliant YESTERDAY. Brilliant NOW. Brilliant TOMMOROW. SUPREME value, relevance and again, VALUE. Thanks again MC!
150k minimum loan, 14% interest 12 month term. It might be a good idea on paper, but with no practical application.
I am extremely offended about your words on government research. I am the lead scientist of the quail reproduction under influence study and I truly believe this is one of the most important studies humanity has ever seen. It is the fruit of my labour after a PhD in quail pscyhology and 35 years of dedication to my craft. It's my life's purpose and I am very proud of the results. Money well spent.
Lol you’ll be alright.
Uhuh
😂HA! QUAILS!😂
Be offended, it’s your right. But really, no one gives a 💩
@@luftwaffe6521 the joke flew right over your head, didn’t it
Wait... I'm only 30 seconds in but this is making me think of Robert Kiyosaki when he said he never sells his assets, (cause when you sell for gains, you pay the IRS, Tax)
and I was thinking SO HOW DO YOU LIVE, MY DUDE?!
Idk, it just made me think of that. Makes me think he's essentially living such a high-life because he is using his assets, as debt, in a sense (form of loan off his asset(s)!)
IM JUST SPIT BALLING HERE but this makes me think. I'm already hooked, will finish watching to see if I'm at least even remotely correct.
Great video!
Another option (perfect for a bull market) : you deposit btc and take a loan to buy more Bitcoin. I used the b2x loan by ledn. In my example : deposit 0.25 Bitcoin, get a loan for 16.000$ and buy immediately another 0.25btc. Doubled the btc.
If the LTV is 40 % You’d need to deposit a lot more than 0.25BTC to get a $16k loan when price is currently $64k
Hi, Matt! I've been watching your videos for over a year now. The info is invaluable, and your presentation is extremely easy to follow and comprehend. Thanks so much!
Hey dude really nice. I like your way of explaining things!!!
Next video with apps to do this? I don't really trust any to leave all my BTC, that's why I have 8 different accounts to mitigate the risk of bankruptcy or whatever in some accounts!
I would really appreciate a updated video on this subject. I always find myself watching this video and how brilliant it truly is. My only concern would be what if unchained capital disappeared etc... please touch base on this soon and I would be forever grateful. I always look forward to your videos and hope one day to join the university. Thank you Matthew, you are amazing.
You can use Aave or hodl hodl. Both are decentralized and you keep your Bitcoin with you.
A conservative approach would be to split your Bitcoin into 3 pots. 1/3 stays in cold storage outside the system as security for a rainy day. The next 1/3 is used as collateral for fiat loans. The final 1/3 is loaned out at interest to generate income in BTC. If you have a larger amount of Bitcoin you can use the fiat loans to build a real estate portfolio. The real estate offers tax advantages to offset income taxes on the income generated from loaning out BTC. You can also use the surplus income from your real estate investments to buy more Bitcoin. Using this approach you would never sell your BTC and constantly be accumulating more.
It would also be smart to use fiat loans against BTC to pay for your living expenses and taxes. An easy way to do that is to pay for everything with cash back rewards credit cards and then use fiat loans against your BTC to pay them off every month. You could also buy a house with a BTC loan and then get a HELOC against it to pay for expense you cannot pay with a credit card. Again, pay off the HELOC with a fiat loan against your BTC every month
I would only want to spend my BTC if I received a very signficant discount for doing so. Even then my strategy would be to use a fiat loan against my BTC to buy enough new Bitcoin to make the purchase. If you spend it immediately you should be able to avoid significant capital gains taxes on it if the price doesn't fluxuate very much between the time you buy it and the time you purchase your product or service.
Great video. People wonder why Trump etc. don't pay taxes..... Here you go! This is the secret of the 1% thanks for sharing with the masses. I also just purchased your Bitcoin book.
Pelosi and a lot of rich people!
This only works if prices go up forever.
The piper must always get paid. Remember that before taking on leverage.
I don't even have to wait til the video ends to say great work Matt!!
Thank you.
Trader University I love your videos man! Really like your thoughtful approach
wow this is an AMAZINNNGG VIDEO it should be shared to everyone who holds 1btc or more....anyone else is not worthy of this precious information
Just watching this vid two years after you posting it. Now I understand the strategy . Cheers bro.
Is there sufficient incentive for the loaner though, because they could have, instead of loaning you money, use the money to buy bitcoins themselves? The sustainable interest rate should always be somewhat higher than the real inflation rate adjusted for dollar depreciation, making it no better/worse for the borrower than selling bitcoin
sans taxes I suppose.
Warned us of Celsius a year in advance. Well done.
Hey Matt. would be great to see an update on this one. Any changes coming to the industry that you may be able to buy a house or live off your BTC without ever selling it?? Thanks!
Excellent video. In a smaller scale I have already started using this approach and will eventually use it to retire and live off my bitcoin gains using loans while keeping all my crypto to pass on to my children to use the same way.
This channel is quickly turning me into a BTC maximalist
I always have been. None of the others make a lick of sense, they are down right Ukrainian
This is the top channel on bitcoin investing. Incredible. Thank you for sharing this knowledge.
The whole loan can be memorialized in ether smart contract with all terms automatically executed on chain per the terms.
Matt - just came over from you video posted today. I’m doing a Celsius btc loan at 1%. So far so good.
That's a great interest rate. How does the setup work? Do you they let you hold a private key?
I've been trying to tell people about this for months. Thank you for a very thorough and informative video.
This is good but a very long winded explanation of how to borrow money at a lower rate than the asset you are leveraging. If you borrow against your house at todays rates of 6% (amortized over 30 years, a term you cannot get against BTC) and buy BTC that conservatively appreciates 20%/yr. You are netting 14% return total. That is a doubling in 5 years. SO pretty attractive IF... you can withstand the volatility of BTC over the next 5 years.
Not Financial advice ? This is the best financial advice ! Thx Matt
Matt so you'd only pay the interest back to unchained and when the loan comes to term, what if unchained doesn't let you roll your debt? Will they just liquidate your collateral for the monies owed?
You can always try to take out a loan with another service/person if Unchained does not allow you to roll the loan. If that fails, yes, they would sell enough of your collateral to pay back the loan, and you would get whatever was left over. This is one of the risks. But Unchained is in the business of making loans, so there's no reason they would refuse you, as long as you had enough Bitcoin collateral. They want your business for the origination fees.
@@Bitcoin_University so to be clear, one would'nt necessarily make monthly principle payments but only the interest payments?
@@itsmitchnewton7670 Yes, I believe it's interest only.
Keep preaching the good word my friend! U deserve so many more subscribers for the content u provide.
This video just blew my mind! Such amazing content! From start to finish! Please keep putting similar content about this please! 😊 ! Thank you so much
In my experience Credit card loan if not paid goes to collections agencies. Wait 7 years here in FL statue of limitations after that your start over. Apply new credit cards. Even your credit scores goes up to upper 700 like mine. Student loans though you can’t get out of.
Man, you are the mvp right now. I'm going to use this strategy to get some more asic miners.
This is what I’m doing. Once u take out a loan, it all makes sense.
Mr. Kratter, looking for your take on BTC IRAs. Have you done a video on this? Thank you.
Yes, this is what we need!
He just did
@@D348-p1y thanks for the heads up!
@@michaelmims2626 💯💯💯
@@D348-p1y Thanks. I watched it! Very useful.
I do this trick but use two exchanges to request the loans that pay one another as time goes by.
So the best time to take a loan against your btc is when btc's fiat price is as low as possible? So theres hopefully nothing but upwards potential?
If the bitcoin price stays the same or goes down a bit over the life of the loan, how do you use the same bitcoin you originally used to take out a loan, to then take out another loan to pay off the first one? Wouldn't the servicer tell you that you can't use the same bitcoin that's locked up for the first loan, to then take out another loan?
He literally said in the video the price needs to go UP to refinance. Rewatch it or improve your learning comprehension.
You forgot to add that you can also just use a portion of your loan to pay the loan interest.
Yes! Great minds think alike. If you live a modest lifestyle say $3k a month you could borrow $3.5k pm lump sum over 3 years and then use extra $500 to service interest. Then when principal is due after 36 months just roll it over.
Thanks Matthew for making these videos and reminding us of what is important in these times so we don’t sell our BTC. This topic is on many minds and I know my partner does not understand and wants me to sell cause I am in great profits..
I know you are against this but I have been trading ETC to gain more BTC. I just want to own as much BTC in this cycle to HODL. Thanks for all you do !
18:36 I use the loan to pay off the interests. How to do this with Blockfi, lend and unchained?
This channel provides incredible value. Thank you!
Thank you, John. I appreciate your support.
Do you think it’s better to take a collateralized loan on Bitcoin when it’s at a higher price or a lower price? The risks are margin call at a higher price but you get a larger loan
Lower price, obviously.
say you only wanna sell BTC at its supposed peak in order to gain profit & also accumulate more in anticipation of an 85% drawdown.
is there a way to take a loan & use it to buy more BTC after a big drop? or will it just result in getting margin called?
This is some of the important content on YT . Some will not realise the significance of BTC until it is too late or never even think about BTC in this way . This type of finance will become more and more popular and once mainstream people will start accepting BTC / other cryptocurrencies as payment and cut out FIAT as much as possible.
Don’t forget peeps as long as we’re using FIAT we are fuelling our own demise , funding wars and funding dictatorships . 🇬🇧😇
The Michael Saylor Playbook. Great stuff Matt!
Hey Matthew! Great and informative content! A quick question: While the loan is not taxable, what happens if at the end of the loan term, you simply let the collateral be kept. Is the loan then treated as taxable, as if you had sold the asset? I realize this is not ideal or smart, but just curious about the whole process.
Yes it would be taxable as you've passed ownership to a 3rd party which is the same as selling it.
If I’m not mistaken, the 2nd loan pays off the first loan, and by paying off that first loan, you get your Bitcoin back from that first loan. Rinse and repeat from that point on. Correct me if I’m wrong tho 😅
Great Channel. It would be Epic if you actually took out a loan on one of these crypto loan platforms. A real step by step tutorial would level you up in this realm. Your heading in the right direction so far. Keep it up.
Coinbase offers 30% LTV BTC loans at 8%. No multisig, but I tend to trust them from a liquidity perspective over some of these other new lenders out in the market.
What happens if Coinbase is hacked? Their insurance coverage will not cover all accounts if there is a big enough hack. Then your Bitcoin is gone. Also, they probably rehypothecate your Bitcoin.
I may have missed it. Have you any opinion on borrowing against your BTC to buy more BTC? It seems logical to me near the beginning of this ball run. It's very similar to what Saylor does.
Thanks for posting this video that steps us through the idea of borrowing against Bitcoin to buy things. I'd heard of doing this but I wasn't clear on how to do it. So now I think I get it.
Watching this in 2024 and I’ll definitely be watching in 2028 when btc is $3 million 🎉
If you buy a rental house to cover your loan, you will NOT have to pay tax in the income from that rental house, because you can depreciate the building over 27 1/2 years, and this effectively means your depreciation will cover all the profits over the mortgage payments. Real estate has some VERY tax advantaged rules. :D You also said near the start that mortgage loans would have a margin call if the home value went way down. This shouldn't be the case, and you corrected it later in the video, when discussing rental property.
can we get an updated video about this topic?
My Favorite Channel now!!! i shared to many friends and family member
Thank you!
I'm really grateful for this comprehensive video! You not only cover why one should never sell their crypto but also mention institutions that offer crypto asset lending. Thanks for being so detailed! Could you possibly make a video discussing whether it's still wise to invest in real estate given the rising value of assets like BTC? Also, why not borrow to buy more BTC?
If it happens that you get liquidated on a loan, does that trick a tax-event, if the bitcoin used is in profit?
Yes of course. You've "sold" (albeit against your will) your BTC ergo it is a taxable event
@@bitcoinisfreedommoney.fckt2663 so in that case, you will lose the BTC and have to pay a tax - damm scary
Thanks Matt, this information is very helpful. You can’t get this information in graduate courses but everyone needs to understand this.
THIS IS THE INFORMATION NEEDED!! Good job I've been looking for you!!
Would love an update to this. Thanks!
I think Bitcoin at 10 times this price is possible and then a fall back down to only 3 times our price is very likely.
Fantastic analysis. Did you find this out by inspecting the content of your toilet?
Amazing information..thank you! How do you feel about borrowing against your bitcoin to leverage and buy more bitcoin? how much LTV is a safe bet?
I would not be comfortable leveraging Bitcoin at any level. A quick temporary spike down could completely take you out, even if the price recovers quickly.
But isn’t that what this video is all about?....borrowing against the bitcoin. Am I missing something?
@@danielleprendergast But borrowing to make diversified investments, for the most part, although he does mention you could just blow it all. But if you borrow against bitcoin to buy more bitcoin, you can't borrow or sell that extra bitcoin at a good price in order to save yourself from a devastating margin call, or just a decline across multiple asset baskets at once.
@@dingfeldersmurfalot4560 yea but if you are borrowing against a small portion of what you own, and have calculated the numbers...for example lets say bitcoin goes to 10k...do I have enough to post as collateral? yes...
This is a crazy informative video. Explains why the rich stay rich and even get richer!
Best strategic advice of my life!!! Thank you very much for your great work...
Amazing and thorough video as always, Matt. This is the info I was looking for. I am so hopeful for my financial future and you have helped play a part in my new ability to actually be free one day. So thank you.
Hi MC, you always Say please ask a question in the comments, so here is mine;
If there are 3 Key holders when you borrow off your BTC, It needs two tonmove the Bitcoin.... But Who would be the third party holder?
Also can you have more hypothetical scenarios so that the inflection point of when it makes sense to take capital gains or keep taking loans (Bitcoin goes up this much or down this much, interest rate is a b or c, rental rate is a b or c) is more visible
Mr. Kratter, what happens if you borrow against btc and then btc goes down 80%? How would you pay back the loan? Thank you.
These loans are overcollateralized-- which means maybe you post $100,000 as collateral and then borrow $20,0000. In this scenario, Bitcoin can still fall 80% and you will still have the 20k to pay back the loan. Obviously losing that 80k will hurt, so this is not a risk free game.
Amazing video, as you talk I type in google drive my plan as I enter my mid 20's next year ! This is very logical and opens up new ways to see life. Thanks a lot your videos will change my life one day.
Is it better to take the loan now when BTC is low, or at ath when it's worth more? Seems bottom is better so margin call is less likely.