c4eabae1be3c -- 2mo [parent] [-]
|    Some more color on the Line of Credit product we're rolling out:
|    
|    Most Bitcoin-backed credit today is structured as a 12-month term loan.
|    
|    That product makes sense if you're financing something discrete:
|    
|    – a wedding
|    – a home renovation
|    – starting a business
|    – a major life event
|    
|    You take a chunk of capital upfront, lock in the term, and deploy it. We see this a lot.
|    
|    But a 12-month loan doesn’t solve for something much more common: What's the best way for me to live on my
|    bitcoins?
|    
|    If you're not financing a large one-time expense, taking 12 months of capital all at once can sometimes increase
|    risk.
|    
|    Because Bitcoin is volatile. If you borrow a large amount upfront and the price drops significantly, your
|    starting LTV might be 50%. Now you're stressing about margin calls, collateral top ups, etc. Many people
|    actually don't use Bitcoin credit products for this exact reason.
|    
|    If you didn’t need all that capital in the first place because you are just trying to pay normal bills, that’s
|    where a Line of Credit is different and extremely valuabke.
|    
|    With a Line of Credit, you don’t take 12 months of capital on day one.
|    
|    You draw what you need, when you need it. You pay interest only on what you draw.
|    
|    On Strike, it acts as another payment method like a linked bank account. Have a bills to pay? Select your line
|    of credit as your payment method.
|    
|    Now combine that with:
|    
|    – Direct Deposit
|    – Bill Pay
|    – Buying and saving in bitcoin
|    
|    Here’s what Strike enables:
|    
|    You hold some portion of your savings in Bitcoin that you're comfortable with on Strike.
|    
|    A bill comes in: your mortgage, HOA, utilities, credit card, etc.
|    
|    Instead of selling Bitcoin (and triggering capital gains), you draw a small amount from your Line of Credit to
|    cover the expense.
|    
|    If your Bitcoin savings are substantial relative to your monthly expenses, your is not 50%, it's probably closer
|    to 1%.
|    
|    Completely different risk profile and allowing people to use bitcoin as an active savings account that benefits
|    their everyday life!
|    
|    Then your paycheck hits via Direct Deposit.
|    
|    You can:
|    
|    – Pay down the balance entirely
|    – Pay it down partially
|    – Or manage it however you choose
|    
|    You’re dynamically financing your life against your savings instead of liquidating your savings.
|    
|    Strike enables you to own more BTC. Accumulate more than you otherwise would and sell less than you'd otherwise
|    have to. That’s how you live on an appreciating asset without constantly selling it.
|    
|    The 12-month term loan still has its place. It’s a great product for specific use cases.
|    
|    But a Line of Credit turns Bitcoin from something you occasionally borrow against into something you can build a
|    financial life around.
|    
|    Direct deposit.
|    Bill pay.
|    Buy and hold bitcoin.
|    Line of credit.
|    
|    All in one place.
|    
|    Strike is starting to look like a bank account from the future. This is only the start of what will be a massive
|    2026 for us. Can't wait to get this to you guys. We are cooking!
|    note:a69410ab…ded0
|    reply [1 reply]