single digit rates and lower/no minimums incoming
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Replies (91)
Inbound liquidity
Does it require KYC?
I like the idea of no minimums. Most folks don't need 10-15k. They probably need $500-$2000. It also allows the borrower to risk much less if problems happen and they get liquidated.
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yep
Yeah, but so do credit cards.
👀
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Australia next 😉
We all know your new jewish connections could get you cheap capital to loan to the goyim at crazy high rates. 😆
yep
Longer terms would be helpful too, similar to car loan terms 48-60-72 month terms would be 🔥🔥🔥
who are my jewish connections lol
i’ve never met howard and Strike has no relationship with Cantor. they have nothing to do with our lending product
Hey Jack. People are concerned that you are going over to the dark side by strengthening the fiat system.
lol how am i doing that? i’m always happy to answer any questions anyone has. i don’t know what to do when people lie about me except for just keep building and let me work speak for itself
I’m a big fan Jack. Just relaying the message. I’d love to interview you. I’ll explain more. Keep up the good work. Love Strike!
Howard Lutnick, you know the guy who used to be the CEO of the financial services firm (now led by his sons) that played a pivotal role in the launch of Twenty One Capital, which you will be leading.
Rings a bell?
Good to know Strike and Twenty One Capital will be completely separate entities with no overlap
what about him? i’ve never met him and i don’t understand how this has anything to do with Strike
Jack what happens to the loan if bitcoin drops 50%+ in USD value?
nothing.
if you’re wondering about margin call and liquidation, you can read more here: https://strike.me/faq/what-are-margin-calls-and-liquidations/
You asked which jewish connections you have. I responded Howard and or his kids. I highly doubt the people (them) leading Cantor would not meet or communicate withe the future CEO of a company they played a huge role in launching.
I’m not claiming they are in business with Strike. Not yet anyway
I wouldn’t call margin calls and liquidations nothing.
Looks like from what I read you’d get at least 2 margin calls in a 50% drop and have to add collateral each time within 24hrs to avoid liquidation.
Seems awful risky for plebs.
Fair enough bro
You know who has something to do with Strike’s lending product? Of course you know, duh, NYDIG led by mega Jew Ross Stevens that pulled $100M from the University of Pennsylvania’s business school because they weren’t cracking down on “antisemitism” hard enough in 2023.
Remember kids the further you go up the fiat ladder, the closer you get to the synagogue of Satan. Lets hope Jack hasnt kissed the wall or been “on video” yet.
🔥
Bitcoin backed loans increase demand for dollars, do they not?
Who is the beneficiary of lending dollars but the fiat system?
No lie there as said, you do have jewish connections whether you’re aware of it or not is a different matter. Demand for dollars strengthens the fiat system.
I’m not even hating, I like Strike and am happy people can borrow against their bitcoin.
Bitcoin-backed loans don’t strengthen fiat. They let Bitcoiners access liquidity without selling their Bitcoin, reducing selling pressure and keeping Bitcoin held as an asset. The demand for dollars in these loans is temporary, serving as a bridge to maintain Bitcoin exposure. People can take the fiat from these loans and buy Bitcoin if they’d like.
If anything, they increase demand for Bitcoin, not fiat.
unless you can grow your fiat faster than bitcoin it's still stupid
because of fiat, businesses growing faster than bitcoin is like 2% of all enterprises. over half of them will not make the money back to finish the loan and get the bitcoin back, so it's stupid, sorry, not sorry. i know you are an entrepreneur and what you just said is dishonest.
Ahhhh.. just clicked why this is most likely why Marty and Odell never dare to saying anything negative about Israel and kind of dance around the elephant in the room.
what?
i’m not dishonest, maybe misunderstood? the point isn’t to grow fiat faster than Bitcoin, it’s to keep Bitcoin exposure without having to sell it. if someone takes out a Bitcoin-backed loan, they’re betting that Bitcoin’s future appreciation outpaces the cost of borrowing fiat. That’s not for everyone, but for those who believe in Bitcoin’s long-term value, it’s a strategic play, not a cash grab
Agreed. By allowing temporary leverage it can facilitate the purchases of additional investments like other projects and assets without Bitcoin liquidation. The Bitcoin held is helping people and companies build their wealth through tapping part of the equity for growth actions. Solid tool in the toolbox.
if the asset doesn't grow against bitcoin, it's a net loss, metoo
I understand it!
Thank you
Fiat institutions collecting interest by lending dollars to people pledging bitcoin as collateral is not strengthening the fiat system? Common
Two things can be true. This product both reduces sell pressure on bitcoin in the short term and strengthens fiat institutions that get that sweet interest thanks to their ability to magically conjure money out of thin air.
Assuming people will buy bitcoin with the borrowed fiat is that just an assumption. Any way you slice it you end up with people close to the money printer enriching themselves
The asset only has to grow against the int rate of the bitcoin loan if only judged by growth in the loan period. Or more commonly, the loan can act as a bridge to refi the purchased asset or the revenue on the inventory etc. in this bredge loan case the int is a cost but hopefully is worth the gains after stabilization of the new asset. It’s a great tool.
I’m not even criticizing it, it’s a messy world out there
Happy Strike exists, but gotta call it how I see it
so, it's like taking out a mortgage
you don't think that eventually lenders are going to factor this in and offer rates that still see them do better than their baseline premium?
if i get a lone backed by bitcoin capital, and the bitcoin winds up being worth less than the interest i paid, i'm losing. i would have been better off keeping the bitcoin and running a lightning node to spend it frugally on business expenses than this nonsense. and if the purchases were feeding a profitable business, it has to do better than bitcoin's price appreciation or i'm not really benefiting.
most businesses mainly need a steady cashflow and if you already held your bitcoin for a long enough time to see it fighting inflation already it is already sufficient as a means to do big capex.
the only context that bitcoin as collateral for a loan works is about 2 year time window, if it's 3-4 years or more between acquiring and spending it, you are not better off.
which makes it a very high time preference choice to get a loan on it.
unless you held it for long enough to get to the next level of the stairsteps of the price curve it's not a good asset for loans, and if you did, you don't need loans.
borrowing against bitcoin isn’t for everyone, and it’s not a blanket recommendation. it’s about optionality and having this service available to bitcoiners, which now have over $2T of wealth. if you believe bitcoin will appreciate over the loan term and you have a productive use for the capital you’re getting, it can be a strategic move. otherwise, holding and compounding bitcoin may be the better play. it’s not about forcing a high time preference, it’s about maximizing optionality without have to sell the asset.
if you don't believe that bitcoin appreciates better than 98% of enterprises at this point you are simply not even doing the most basic research on it.
what bothers me is that the lenders are essentially printing money to do this, their risk is basically below zero, which is kinda cynical and exploitative.
who better to give your bitcoin to for your enterprise than someone who is engaging in fiat loan activity with their bitcoin hating banksters? lol, really.
sure, you are gonna gain in fiat terms as the lender but i doubt this is the right move for a founder who is probably going to sink because of taxes and inflation on their fiat assets.
Jumping in and appreciate the opportunity to ask a couple questions:
1) does Strike or any related company lend out the bitcoin collateral for additional return?
2) What did you mean by “…holding and compounding bitcoin…”
Again, appreciate all the discussion.
bitcoin doesn't compound so that's a deceptive statement right off the bat
it's an inflation hedge that is superior to gold, which is choked by the manipulations of rehypothecated paper at comex
Let’s let Jack answer that, but I get what you are saying.
What I always tell people about manipulated paper #bitcoin is if you think the price is consistently suppressed, consistently go buy more and take it into self custody. You can’t do that with any other product with such ease, and you are technically getting a discount on your bitcoin.
no, there is nonrehypthecation. we will also soon have some variation of proof of reserves lending
i meant just HODLing and the sats growing at something like 50% CAGR
exactly my point... the only use case for bitcoin collateral based fiat lending is exactly capex that you expect to make better than the interest rate you get charged in a 2-3 year time window, and i woud add to that, only a year after halving and for the next 1-2 years after that is actually a bad time to do it, it only makes sense to loan out your bitcoin to a lender during the flat periods when your straight gains on your illiquid capital are going to be lower than a reasonable estimate of your positive cash flow from your enterprise
and i would further say that if your enterprise is overladen with costs already you get a bigger benefit from dropping staff, or freezing hiring than anything else during those times. the biggest business cost is people, and then just below that is regulatory uncertainty and taxation.
Thanks for making (non-)repos clear. It’s a wonderful thing, bitcoin, and a major company overlaying proof of reserves is groundbreaking.
Now, if we didn’t need to KYC ourselves for strike access, and the keys for bitcoin were also kept outside of strike, I would be at the front of the parade. Maybe someday we will be there.
yep, would be nice. can’t provide that due to laws, but i’m going to keep pushing
Even if the bitcoin depreciates over the loan term(which 12mo term is more likely than say, 48 or 60mo terms), the liquidity access can still be crucial for individuals who can beat the interest rate, as it’s all paid back in fiat, not bitcoin. The bitcoin just sits as collateral.
Say I wanted to build a house, but my primary asset is bitcoin, and therefor i don’t qualify for a construction loan. I could fund the building of my house using a bitcoin backed loan, then mortgage the house to pay off that loan.
Construction loans are getting harder and harder to come by, as builders don’t want to take the risk and prefer cash buyers.
yes, but you obviously haven't tried entrepreneurship because if that loan costs you more than the collateral asset could have been sold for then you are still in arrears on your cashflow.
I like the idea of no minimums. Most folks don't need 10-15k. They probably need $500-$2000. It also allows the borrower to risk much less if problems happen and they get liquidated.
nothing i said disagrees with your argument. i'm just saying that timing is important, bitcoin bull markets are a bad time to lend it out, you would be better selling it little at a time during those periods.
@jack mallers stop getting baited by the trolls.
Regardless of laws, what individual in the history of humanity has loaned something to someone whom they do not know?
At some point it stops being a loan and starts being a gift because the former requires the item/money is returned. If you don’t know who you loaned it to, how can you ever expect it to be returned?
The taxes part is what makes it make sense.
Mr. Nobody, you mean that you don’t have Jewish friends?
That’s like saying that you don’t have any Mexican Friends. (They still make people like that?)
You need to reconsider that my friend.
Meet them and treat them right.
Look up “ Heter Iska” it is the term you tell a banker to get no interest loans.
#mynodemychoice
#yournodeyourchoice
#bitcoin
#bitcoinlightning
#noderunners
#bitcoinmining
#bitcoinknots
#iamtheregulator
#youaretheregulator
#choosewisely
Nah i removed jews from my life. Such a bad ideology.
Do you have any Nazi friends?
But honestly we dont need Hitler this time, eventually bitcoin will stop Mallers and his new buddies from exploiting the goyim with financial schemes.
Great question. Well, I lived in Germany for almost 4 years. Does that count?
To answer your question better. I have a lot of friends in and from Germany. The ones I know are great people. AND I am about 99% sure that at least one of these friends was married to a soldier during the period in question. She has never brought it up and I have never asked. We are all just people living the best life that we can.
timing the market is not strike’s job. we’re not here to speculate on bitcoin’s price or advise people on when to borrow or sell. we’re here to provide tools and optionality for people to make their own decisions. if someone believes bitcoin will appreciate and wants to maintain exposure without selling, they can now choose to borrow. if they’d rather sell, that’s their call too, we can help with that. we’re not in the business of telling people what to do with their bitcoin. we just giving them options to improve bitcoin’s utility for the world
People can make their own decisions, we are all big boys with big boy pants.
Stop derailing the original conversation about the jewish connections with this left curve nonsense
I got caught up in the minutia. Single digit rates and lower/no minimums are incoming??? This is great news and we welcome it.
Thanks man!
give me until the end of the month. proof of reserves too (some variation of it)
When Alabama?
we’ll have almost the entire US by the end of the month. let me check on alabama
Hi @🐢
Would be cool if the loan product had an option to integrate with bill pay and direct deposit automatically.
A bill pay request would create a new loan or debit an existing loan. A direct deposit request would credit an existing loan. If direct deposit pays off the loan, remainder goes to cash or btc.
This system would allow users to avoid taking out predetermined loans for future bills.
I'm curious if you know what happens if there's a significant drawdown. Does one need to add more collateral to avoid partial liquidation? Guessing so, but never seen it addressed
This is the future we need to build toward, building stateless, privacy protecting protocols that fiat issuing governments can participate alongside paper issuing corporates and individuals. All voluntarily participating.
Sounds like a fantasy, sure, but now that bitcoin has arrived someone will build it, maybe us, maybe the next generation, or maybe the generation after that. Someone inevitably will and because laws will not be a reason. So why not start now.
Yeah typically the lender wants you to maintain a certain LTV (typically ~50%) if that goes up they will probably ask you to add more collateral and when a threshold is met and no additional collateral is added they liquidate the collateral to protect the loan
Thanks, thought it was strange hadn't heard it addressed. Grace periods etc., don't really know how it all works. Prob worth educating people more about that imo
Yeah, it’s a pretty standard practice similar to trading on margin and needing to keep the margin maintenance at a certain level to avoid getting a margin call.
I imagine the user interface walks you through this when you take out a loan
Yes margin call at 70% LTV with 24 hrs to bring collateral up to 60% and 80% causes liquidation. It’s a bad idea.
24 hours is pretty tight, but at least terms are clear and maybe that's standard. Thanks for linking
That fact that bitcoin regularly drops 30% even in a bull market almost guarantees a margin call.
Then over collateralize yourself? The app requires 50% loan to value but does not prevent you from allocating additional collateral, and makes it very clear where the margin call and liquidation prices sit in relation to the amount of collateral pledged.
100%
And give up custody of more bitcoin no thanks!
If you build a successful business with your loan you get to pay down the principle and get your coins back with now an additional cash flow to continue stacking.
You seem to have a mindset of an employee.
Thank you!
Where in Alabama
N. AL
Hey Jack, following up on sweet home Alabama … any chance we’re up soon?
S. AL here greetings
War Eagle!
Yes War Eagle!
if you get a chance, can you please provide an update on the availability of bitcoin collateralized loans in Alabama (and the remaining 23 states).