How to HODL Bitcoin - Generating Income

[estrada]

Let's say for argument's sake that you hodl 100 Bitcoin (nice round number and nice fantasy). Now if Bitcoin goes to 500k you will have 50 Million. Assume you bought this Bitcoin at 5k each, meaning it cost you 500k. Meaning you're doing well but not a Billionaire with a huge company like Michael Saylor.

People like Saylor say that you will be able to borrow against your Bitcoin. Ok, that's fine. However given that your holdings are now worth 50 Million, if you take out a loan of even 5 million you probably won't be able to service that loan (interest payments + paying down of capital + any margin calls as the loan will be mark to market).

Hence, besides reducing your Hodling what is the solution? Running ETH validators for income? Please let me know your thoughts. Thanks

[agent006140]

There is or there was one site which wlll pay you interest OR lend your bitcoin out and pay u for letting them do so?
I heard the rate is pretty good,too good to be true

if you have 50 millions worth of Bitcoin and just borrow 5 millions,if they are charging you at the same rate as call money which is for stocks,I believe he rate is now 7%.
I would think if you ask,you must have some idea how to make money which will give you better than 7% return?

[vogeltron]

Yea, there were quite a few of these. BlockFI, etc they all went bust and people lost a ton of money.

There is a saying in crypto not your keys not your coin.

Originally Posted by agent006140

There is or there was one site which wlll pay you interest OR lend your bitcoin out and pay u for letting them do so?
I heard the rate is pretty good,too good to be true

if you have 50 millions worth of Bitcoin and just borrow 5 millions,if they are charging you at the same rate as call money which is for stocks,I believe he rate is now 7%.
I would think if you ask,you must have some idea how to make money which will give you better than 7% return?

[yobar]

You are right in what you propose, the best thing is eth validators, you will always get money, with loans you will have liquidity problems in the coming years...
Now, what can you do?
I would borrow from fiat financial entities with them, at least the interest rates will be lower and the BTC will always go higher, so with this you can have fiat money and keep your crypto safe.]

[estrada]

Yep, when you introduce a centralized exchange then you get the risk that they will go bust. Not Your Keys Not Your Coin.

That's why I am trying to figure out this puzzle.

Originally Posted by vogeltron

Yea, there were quite a few of these. BlockFI, etc they all went bust and people lost a ton of money.

There is a saying in crypto not your keys not your coin.

[estrada]

What ratio do you think is good? Coz right now ETH is tanking against BTC.

Originally Posted by yobar

You are right in what you propose, the best thing is eth validators, you will always get money, with loans you will have liquidity problems in the coming years...
Now, what can you do?
I would borrow from fiat financial entities with them, at least the interest rates will be lower and the BTC will always go higher, so with this you can have fiat money and keep your crypto safe.]

[estrada]

I am honestly not sure what business could return more than 7%. Assume I take a 5 million dollar loan at 7% and buy a house and cars. That house won't yield anything if I live in/use them. Now, assume I take out another 5 million loan at 7% and want to invest it in a business. Which Business would return in excess of 14% ? Would love to hear good business ideas.

Originally Posted by agent006140

There is or there was one site which wlll pay you interest OR lend your bitcoin out and pay u for letting them do so?
I heard the rate is pretty good,too good to be true

if you have 50 millions worth of Bitcoin and just borrow 5 millions,if they are charging you at the same rate as call money which is for stocks,I believe he rate is now 7%.
I would think if you ask,you must have some idea how to make money which will give you better than 7% return?

[agent006140]

if you buy a house and live in it,you are not paying rent t o landlord,but there are maintenance ,property tax and insurance expenses.
you can take the rest of the money and invest in equities,fixed income,real estate,more cryptos?
If I were you,I will look into real estate,
I will build or buy apt buildings with mostly studio apts and rent to singles,alcove studios can be spacious enough to have one area dedicated as bedroom with some kind of divider.
Some buy second mortgages of singles family homes in good neighborhood.
or go to Las Vegas and have some fun.
14% return is a tall order,someone else would come along later in the day and offer more ideas.

[yobar]

Bitcoin is already approaching the halving and this, in theory, as has happened before, should increase the price of the currency by at least 30% more.
although to get to that moment it will surely go down a lot.

[rsot]

Originally Posted by agent006140

if you buy a house and live in it,you are not paying rent t o landlord,but there are maintenance ,property tax and insurance expenses.
you can take the rest of the money and invest in equities,fixed income,real estate,more cryptos?
If I were you,I will look into real estate,
I will build or buy apt buildings with mostly studio apts and rent to singles,alcove studios can be spacious enough to have one area dedicated as bedroom with some kind of divider.
Some buy second mortgages of singles family homes in good neighborhood.
or go to Las Vegas and have some fun.
14% return is a tall order,someone else would come along later in the day and offer more ideas.

real estate is not really for everyone - renting and tenants can be a headache...not always smooth but maybe flipping in the right circumstances can work

[agent006140]

if flipping stock is hard,can you imagine flipping real estate?It is like flipping an elephant in your frying pan.
everything is hard work,you need to pick location,tenants and it helps if you are handy .

[rsot]

Originally Posted by agent006140

if flipping stock is hard,can you imagine flipping real estate?It is like flipping an elephant in your frying pan.
everything is hard work,you need to pick location,tenants and it helps if you are handy .

truth about being handy and handling own repairs

[Occult]

Originally Posted by agent006140

There is or there was one site which wlll pay you interest OR lend your bitcoin out and pay u for letting them do so?
I heard the rate is pretty good,too good to be true

if you have 50 millions worth of Bitcoin and just borrow 5 millions,if they are charging you at the same rate as call money which is for stocks,I believe he rate is now 7%.
I would think if you ask,you must have some idea how to make money which will give you better than 7% return?

Never, never, NEVER do this. Where do you think that APR is coming from? Thats going to fall apart so QUICK. Need a reference?

Try reading up on:
Blockfi
Gemini Earn
Nexo
Celsius
FTX

[SaiJin]

Originally Posted by Occult

Never, never, NEVER do this. Where do you think that APR is coming from? Thats going to fall apart so QUICK. Need a reference?

Try reading up on:
Blockfi
Gemini Earn
Nexo
Celsius
FTX

You're into crypto? YOu trade also?

[yobar]

If you want to make money, put them in your cryptos in some staking, I use that method and I have real profits with little risk

[vogeltron]

If you don't understand the yield you are the yield

Originally Posted by Occult

Never, never, NEVER do this. Where do you think that APR is coming from? Thats going to fall apart so QUICK. Need a reference?

Try reading up on:
Blockfi
Gemini Earn
Nexo
Celsius
FTX

[yobar]

Skill is the most important thing to win in this business, the other thing that is important is choosing well where to leave your money to make it grow.
It is very important to investigate all this so as not to lose your money.