Mark Moss describes a strategy where Bitcoin serves as collateral to borrow against at 35-50% loan-to-value ratios. Four layers of liquidity act as buffers, protecting you from margin calls even if Bitcoin drops 30-40%. The borrowed funds can cover living expenses or fund new purchases while you hold for long-term gains.
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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.