Help me understand the "live off your BTC" strategy

So a lot of people talk about doing like smart investors who never sell their appreciating assets and live off of them by using them as collateral in order to get loans and live off of them. I understand the idea and it could make sense when talking about real estate but I wanna understand it for Bitcoin. Mike Moses made a free spreadsheet about it but I can't make sense of the numbers. Here's his simulator with 1 Bitcoin. According to this simulator you'd never sell the Bitcoin and reach 2043 with: Your bitcoin, 3.1 millions in debt, 1.7 million in due interest to pay and 120k of free cash flow. Can you guys explain me why in 2030 he takes a LTV of 105%, taking a loan of 880k? First of all who the heck is going to offer such a loan, with a bigger loan than the collateral itself. But even if we ignore that, can someone explain how in 2031 he goes from having 792k of free cash flow to negative 801k the next year? It seems logical after 2033 but I don't get the 2030-2032 period. Can someone explain? And also, do you think something like this is possible? So far I've only seen loans for BTC that require the payback within 12 months so it's a huge risk, not even comparable to the real estate scenario where you can comfortably dilute your debt. Please analyze this spreadsheet and make it make sense. I'm trying to make sense of this whole scenario in order to decide if I gotta buy 0.3 BTC for my pension. submitted by /u/InterviewOther7449 [link] [comments]

May 29, 2025 - 14:26

Help me understand the "live off your BTC" strategy

So a lot of people talk about doing like smart investors who never sell their appreciating assets and live off of them by using them as collateral in order to get loans and live off of them.

I understand the idea and it could make sense when talking about real estate but I wanna understand it for Bitcoin.

Mike Moses made a free spreadsheet about it but I can't make sense of the numbers.

Here's his simulator with 1 Bitcoin. According to this simulator you'd never sell the Bitcoin and reach 2043 with:

Your bitcoin, 3.1 millions in debt, 1.7 million in due interest to pay and 120k of free cash flow.

Can you guys explain me why in 2030 he takes a LTV of 105%, taking a loan of 880k?

First of all who the heck is going to offer such a loan, with a bigger loan than the collateral itself. But even if we ignore that, can someone explain how in 2031 he goes from having 792k of free cash flow to negative 801k the next year?

It seems logical after 2033 but I don't get the 2030-2032 period.

Can someone explain?

And also, do you think something like this is possible? So far I've only seen loans for BTC that require the payback within 12 months so it's a huge risk, not even comparable to the real estate scenario where you can comfortably dilute your debt.

Please analyze this spreadsheet and make it make sense. I'm trying to make sense of this whole scenario in order to decide if I gotta buy 0.3 BTC for my pension.

submitted by /u/InterviewOther7449
[link] [comments]