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So I have 730k in bank account, but instead of using it, I borrow 730k and spend that money (how do you even decide "which" money you are spending anyways, it's
by dkarras 5y ago
So I have 730k in bank account, but instead of using it, I borrow 730k and spend that money (how do you even decide "which" money you are spending anyways, it's all money) and pay interest on the loan? Why would I do that?
- rawtxapp 5y agoNot sure I understand what you mean, you only have 1 730k which you've borrowed. Interest rates are a drop in the bucket (~4%) compared to ~25-40% tax rates and that's ignoring asset appreciation (BTC averages ~300% YoY). If you use something like makerdao, you won't even have to pay a single cent of the debt back as long as you borrow conservatively and don't need your collateral back.
- pinkfairy10 5y agoThis assumes BTC goes up every year tho