🧮💰Financial Planning Analysis 🧠
Sell BTC vs Borrow against your BTC?
Depending on your cash needs the difference can be extreme. The more you might need the cash, the more borrowing makes sense.
Scenario: You have 5 Bitcoin, bought a few years ago, but a need for $140K after tax next year. You also expect that number to increase at 5% per year.
If you take the cap gains hit every year, and sell enough BTC to make your cost of living payments you essentially have no Bitcoin in year 10, despite a 2.3 MM BTC price.
On the other hand if you borrow the money and roll the loan forward every year you end up with $8MM net after 10 years, and after paying back your loans.
If the ratio of your Bitcoin holdings to cash needs increases, the impact is less.
In other words, loans are for plebs, not whales. (unless they have huge lifestyles)
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