This is not how the value of Bitcoin performed. Bitcoin stored the value of your time the best since its inception / better than any other money.
How should I know. I can’t know. That is exactly what money does, it answers that question. But it can only do that reliably if it is not inflated randomly.
It’s becoming easier to use your BC as collateral for loans. If you get that right, then you only have the fiat that you borrowed. Since the origination of that fiat is now debt, it can have tax advantages too.
That’s supposedly how “the wealthy” do it (not necessarily BTC, but gold, property, etc.) and this doesn’t seem to be brought up oin this forum very much (or I missed all the discussions).
Live, borrow and die doesn’t get discussed much on these forums because it makes less sense in Switzerland than, say, in the US (or other countries) with taxes on capital gains.
Without taxes on capital gains:
your wealth tax doesn’t change as your taxable net wealth (taxable assets - deductible liabilities) stays the same (for the general case) ;
you pay more interests on that debt than you get tax deductions from (as your marginal tax rate would need to be at 100% to equal it and >100% in order to top it, which it can’t).
It can still make sense in the case of illiquid assets (real estate, long term liabilities/contracts/products with a maturity), if you are subject to very heavy fees for selling (though it’s likely you’d also be subject to very heavy custody fees in that case…) or in potential other cases.
If you want to short fiat and long Bitcoin, that is one way to do it so that might be another reason why you’d apply that strategy.
@Wolverine already said most of what I would’ve said. Also I think that borrowing and debt is Fiat mentality. Bitcoin flips this on its head.
You technically don’t need money to “buy” BTC.
If someone sells a Pizza for 1 BTC, they are long 1 BTC and short 1 Pizza. and the person that gets the Pizza is long 1 Pizza and short 1 BTC.
The person who originally had 1 BTC might have mined it or obtained it by selling something else of “value”.
Whether or not it is the best form of money will not be determined in our lifetimes IMO.
I am not all in on BTC and I also do not hold 0 BTC.
waiting for chf ath…
Just wanted to share that Vanguard now owns 8% of MSTR. And most likely some other index funds too.
So most VT / VTI type investors already have exposure. Would have been better to have exposure to BTC vs exposure to MSTR to be honest. I still dont get why people pay 2X to get 1X BTC.
I think the BTC ETFs gave an avenue many people are familiar and comfortable with for anyone, no matter how ignorant, to easily “get some crypto”. I doubt most VTI/VT holders even register MSTR, or consider it exposure to BTC.
And they are right, because it is what, 0.0001%?
I don’t think we should consider it as exposure.
But what I wanted to share was that MSTR is getting continued flow of money from index investors to buy BTC. Whether we like it or not.
ETF inflows are in billions as we know.
This was also the topic of Matt Levine (Bloomberg) newsletter. Maybee interesting:
