So I’ve been very patient waiting for this to roll out; essentially the idea is that within Coinbase, you could pledge your bitcoin as collateral, kind of like how rich New York families pledge their property as collateral, in order to borrow US dollars, and to use those US dollars to invest in other things.
So let us say that the goal is to accumulate and acquire as much bitcoin as humanly possible. If this is the goal, then, assuming that you’re using Coinbase, you could get up to $100,000 USD, then ideally, it seems the most intelligent strategy is to then take that money, and invest it into strategy stock, MSTR. Assuming that the value of the loan is like only 7% or so, and assuming that micro strategy is crushing it, averaging I think in the Trump administration for the next four years, I think we’re going to see something like 120% to 300% performance you’re over here, ARR, so then you’re essentially gaining a arbitrage for free.
And then thinking a little bit forward into the future… Ideally when mainstream banks start to recognize bitcoin like real estate property… Then if you have a bunch of bitcoin and you could use as collateral, you can then use that money to borrow and buy more bitcoin!
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