Is it better to sell some BTC or to take a loan and never sell?

If you want to live off your Bitcoin, the answer to this question could be worth tens of millions.

And I just pushed up a feature that makes it easy to simulate a buy-borrow-die strategy in bearish and bullish scenarios.

When can you start borrowing against your Bitcoin?
How likely is it that you'd risk liquidation in a bearish scenario?

All dead simple to answer now with Stack Wisely.

Here's how it works:

Loans now appear in the plan builder, just like buying and selling.

To create a loan:

That's it. 

By default, the simulation will run with average lending terms available on the market. 

But if you want to specify a specific APR, liquidation limit, LTV, etc. you can do that in the advanced loan settings.

Once you save your plan, you’ll see how the loan performs year by year.

Can you borrow indefinitely? 
Do you get liquidated in a bear scenario? 
How many BTC need to be locked up as collateral?
How much are you paying in fees and interest? 
How much debt do you end up with? What's your net worth?

The simulation will answer all of these questions.

The end goal is to help you decide if (or when) borrowing against your Bitcoin holdings becomes smarter than simply selling some of your BTC.

A loan sounds great in theory (tax-free cash and keep your stack? What's not to like?) but in practice, Bitcoin's historical volatility means loans can be margin-called or liquidated.

That's why it's critical to battle-test your loan plans in a bearish scenario.

In my experience, nearly everyone says they'd rather borrow than sell... But loans aren't a universal solution. 

It comes down to how much you'd like to borrow, how many BTC you have, and your tolerance for margin calls.

Keep in mind that future lending terms are unpredictable.

I would expect them to fall from their currently high levels, but what happens if rates increase over the lifetime of your loan?

A borrowing strategy ultimately puts more of your Bitcoin at risk and can lead to unnecessary anxiety during bear markets.

Yes, selling means saying goodbye to some of your holdings, but at least you know exactly how much cash and BTC you have.

On the other hand, if you are able to buy-borrow-die indefinitely without getting liquidated, the gains on the BTC you don't sell will almost certainly outpace the interest cost of the loans. 

This means you'll most likely end up far wealthier in the long-run by holding onto your coins.

It's up to each individual to decide whether they want to maximize long term wealth with a borrowing strategy, or if they want to minimize uncertainty with a DCA selling strategy.

Fortunately, Stack Wisely will help you easily compare both strategies so you can decide for yourself which one is right for you.

This was a surprisingly complex feature to build. 

But I wanted to get it live ASAP so you could start playing with it.

If you have any thoughts on how it could be made more useful for you, don't hesitate to email me at stack@stackwisely.com

Bigger picture, I have lots of improvements in the pipeline for StackWisely.

If you're here now, you're using a very early version of the product (thank you for the early support).

The current plan builder is just a giant form. I'm working on a new version that is more of a "wizard" that will generate plans based on your goals.

That way you don't need to use the tedious form.

I also want to make it easier to "work backwards" to a plan based on your goals.

Eventually you will be able to say "I have 10 Bitcoin and I want $10K a month forever. When can I retire, and what's the best strategy to do so?" and the app will generate the perfect plan for you that works in a range of scenarios and maximizes your wealth.

And much more than that is on the way.

Thank you for being here.