Leveraging Legacy Assets To Buy Bitcoin

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The following article is an opinion piece and is not intended to be financial advice.

“Ask yourself: Is bitcoin going up more than 3% every year? Then it is a mistake not to maximize your exposure at the current rate of inflation. Any loan you can roll forward for a reasonable amount of time is good. A loan with a 10- to 15-year mortgage against your property is a no-brainer.” — Michael Saylor

Bitcoin is the best insurance against inflation. The continuous issuance of money by central banks has debased fiat currencies, destroying their purchasing power. More than one in five dollars was created in 2020 and 2021.

Data from the Federal Reserve shows that a broad measure of the stock of dollars, known as M2, rose from $15.4 trillion at the start of 2020 to $21.18 trillion in December 2021. M2 is a measure of the money supply that includes cash, checking and saving deposits and easily convertible near money like treasury bills and money market funds. The increase of $5.78 trillion equates to 37.53% of the total supply of dollars.

Leveraging assets held in the legacy financial system in order to purchase bitcoin may be a strategy for investors with a certain risk profile.

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Source link Bitcoin Magazine

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