Bit of light relief - skip to 5:50 if it starts from the beginning
I love Crypto, but videos like that make me worried
That's very cringe. Trying to shill Hex to a stranger on the street 🤦♂️ The video was posted with hex near ATH too, it's down around 40% since then
I just picked up two sol parasites, they are a NFT that mutate daily based on the NFTs in your wallet. I’m pretty impressed with this idea.
LRC layer 2 counterfactual wallet and fiat on ramp just went live
Well that explains the jump just there
Finally. Really excited for the future of Loopring.
Market suddenly looks bullish again. Time to go shopping for some alts. 🤨
Dot
I already have some DOT but will probably get some more. It definitely has room to grow in the coming months and will probably be in the top 5 or 6.
Agreed. I think it's a great price point atm.
someone is definitely after figuring out how to open old wallets
...
I doubt it, more likely some poor Irish sod who has been trapped by life circumstances has finaly managed to escape where CGT isn't 33%, and needed to buy a house.
My wallet has been dormant for 4 years.
The thoughts of working for years and paying rent while having 15m in bitcoin just to save money on paying CGT tax. You'd have to be mental.
In five to ten years people will be saying he was mad to sell, that he should have borrowed against it as an assets.
Sell 2m of it and you have more than enough to buy a nice house and living expenses for a good few years after CGT. It would be madness to have 15m in assets and not sell some of it while working and paying rent.
Even if the lower CGT was 20%. Would you really not enjoy some money for the sake of 13%?
A lender would want to be fairly thick to lend hard currency backed by such a volatile asset without a severe haircut.
What haircuts do the actual crypto exchanges give for margin purposes? I presume that some have that facility?
No, you'd just need to be able to do some maths. I don't have a mortgage and have no inclination to touch my BTC until I am out of the country.
Given that you appear to have a lot of money locked up in these things, you should listen to the likes of that Johndoe poster. He is probably the only regular poster on here that comes across to me as understanding markets. Other posters often have other general useful advice too that you could take the odd heed of.
You are very presumptious.
Well he didn't have €15m of bitcoin 5 years ago, so paying rent was the correct decision in that scenario.
I made the opposite decision. Sold a load of Bitcoin about $600 back in 2016 to help fund a deposit on a house. Obviously now if I'd have held I'd be able to buy the house outright, but at the time I was happy with my decision.
That's what defi/cefi platforms do, lend to people using their crypto as collateral. Depending on the asset, most will want a 30-50% LTV to maintain the loan. Btc itself is more difficult as most of the defi options are on Ethereum, which would mean you'd need to wrap your bitcoin to get a loan (and causing a taxable event), but I know the likes of Nexo will lend against your bitcoin at 0-2% interest if you keep your LTV below 20% with no payback date. With $15m in Bitcoin you'd easily get a loan to live off and likely never have to pay it back.
That wallet was worth nearly 5 million for a white back in 2017 and has been worry over 10m for most if not all of this year. According to Cnocbui it's some unlucky Irish person getting screwed by our CGT rates that only now can afford to leave here for some place that has a lower CGT rate so they can buy a house. They couldn't do it in January because it was only worth about 10m and we all know 10m won't get you a decent house in Portugal.
My point is that that is a fair haircut. And bear in mind also that those platforms are best placed to close you out. Yet they still need that massive haircut. There is a reason why they won't take that risk. And they will liquidate you and close you out fairly rapidly too.
You borrow 10-20% of the asset you deposit then sell it for cash. If the market drops buy it back at the lower rate and repay the loan and still have the difference in cash. Then rinse repeat. You have the 80% coverage just in case and can’t get liquidated as it’s the same asset. This should only be a certain percentage of what you have in case the provider has security issues. Also some staking and loan pools give interest in native tokens for lending borrowing so you can mix about.
No. They can liquidate you and will do so if it hits their limits. Plenty of retail investors got very badly caught with this last year in the regular stock market. They had been piling in using the "nearly free money" from the likes of robinhood and then found themselves cashed out when the market tanked.
You're getting great value out of the cash from your loan though to be fair. When you get it you are spending it (on a house or living off it). Then when the market drops you are spending it again to buy more BTC. And then when you have that done you are spending it a third time on paying itself back. And you still have cash left over at the end of it! I didn't know money worked like that 😉
Sticking with the Nexo example, you can borrow at 50% LTV and pay 6.9% interest, or go for a lower 20% LTV and pay 0%. A fair haircut indeed, but that's what's needed if you want to withdraw cash and not have to pay any tax.
They could borrow USDC against their bitcoin at 10% LTV (so very little chance of ever getting liquidated) and keep the USDC in Nexo earning 12%. Lots of wiggle room with that amount of bitcoin.
In fairness, nexo will give warnings before closing out your positions too, and there are also options to automatically move funds over to prevent you being liquidated if there was a steep drop in your collateral value.
No, you borrow a fraction of what you deposit of the same asset. It’s not leverage trading as it’s the same asset and not multiples of what you have (100x trades etc). You sell the loan for cash and buy it back if it dips to repay the loan but that’s taxable. The interest would cover the loan interest anyway (edit not tax advise ask a professional).
Anyway the very wealthy do similar to avoid tax, get paid in shares and borrow against them for cash so they have more dept on paper and the shares can’t be taxed until they sell.
