Mark Moss explains how he uses Bitcoin as collateral to borrow money at different loan-to-value ratios, with four layers of liquidity protecting him from margin calls even if Bitcoin drops 30-40%. As long as his long-term thesis holds, the volatility doesn't matter to his strategy.
As long as my thesis stays intact and I'm continuing to expect Bitcoin to go up, what do I really care if it drops 30 or 40%? Not in a WealthOS system, right? Because if I'm using Bitcoin as a tool, a specific tool in my toolbox to achieve a certain job, I'm going to use Bitcoin as a collateral asset. And if I need to borrow against it for liquidity, use that liquidity for whatever purpose to live off of, live off of the debt, pay for my life, buy new assets, whatever. And I've borrowed it. We've gone through hypothetical LTV ratios and we have our 4 layers of liquidity. And if I borrow Bitcoin at 35% LTV or 40% LTV or 50% LTV and it drops like it just did, so what? I didn't get margin called. If I did get margin called, I had 4 layers of liquidity to cover me and now it's going back up. What do I care about the volatility, right? You see, that's how, that's how I approach this. If you want to know more about creating a wealth operating system, just comment ready and we'll send you the link.
