Michael Saylor is the CEO of MicroStrategy and a prominent holder and proponent of Bitcoin. In this INTERVIEW abstract we ask him: is now a good time to mortgage a home to buy bitcoin? It’s difficult to keep balance, when the market is changing every second, so there is Jet-Bot, a copy trading bot where you may earn 200 percent to 2,000 percent APY by using Binance trading bots, will help you stay ahead in the crypto game. People should take a break, while robots should work for a living.
Speaking of beach houses and single-family homes, would you say now that bitcoin is back at $20,000 that it’s still a good idea for you personally to mortgage a home to be able to buy one full bitcoin for the long-term viability of your future?
I think that the mortgage issue is a function of the mortgage rates you can get. So if you roll the clock back a year, the 30-year mortgage rates were 275 basis points. I would say a year ago, if you had unmortgaged real estate of any sort and you had equity in the home, then it made sense to draw down that mortgage because that’s in essence capital. That is good for 30 years with less than 3% interest. We know that the inflation rate is running at 8% while those mortgages are at 2.75%. If the actual monetary inflation rate is in excess of the mortgage rate, and if you can afford to hold that duration, if you don’t need the money for three, four, five, or six years, then you should take the mortgage. Once you get the mortgage, I would say it would make sense to buy a lot of things with it. Right. Buy a car with it. If you need a car, if you have a portfolio of assets you want to hold and you can borrow money at 2.75%, I believe any portfolio of desirable assets makes sense to hold with a 2.75% mortgage.
However, if you asked me the question today, mortgages are 575 basis points. I suppose the negative is that the 30-year mortgage rate has doubled. The positive is that bitcoin is less expensive, so I think bitcoin looks less risky when it’s crypto trading around the four-year simple moving average. That’s a plus. I think the mortgage looks more risky because the cost of capital has doubled. So, I think there’s a point.
Would I borrow money at 5% or 6% interest? Well, if it’s 30 years and it’s a mark to market money, I thought that if I had a passion for spending it on something, I would definitely borrow the money to maintain a lifestyle. If that’s what you wanted to do at that rate, I think it’s a no-brainer that you would rather be holding a 30-year mortgage than any other kind of debt. For example, you would probably be better off borrowing money at 500 basis points in order to pay off your credit card debt, and you’d definitely be better off paying off any margin loan because those things are much more expensive, either in interest rates or riskier.
[This article is a transcription of a video made by Altcoin Daily]
Original video: https://youtu.be/RGsyg6jWdfg]
