In a compelling interview with Robin Seyr, Peter delves into Bitcoin's transformative potential....
Unlocking Bitcoin's Potential: A 5% Loan, with No Counterparty Risk and No Margin Call.
ForrestHODL and Peter sat down to discuss our innovative Bitcoin lending product: Loan My Coins.
With over 30 years in financial advisory for high-net-worth families, Dunworth shared insights into how this service allows Bitcoin holders to access liquidity without selling their assets. The discussion centred on the mechanics of BTC-to-BTC loans, targeting a niche audience of dedicated Bitcoin enthusiasts. Dunworth emphasized the product's design for "serious HODLers" – those committed to long-term holding – while cautioning against its use for speculative or unrelated purposes.
The conversation began with Dunworth outlining the core problem Loan My Coins solves: the reluctance of Bitcoin holders to sell their coins due to potential capital gains taxes and the belief in Bitcoin's long-term appreciation. Instead of liquidating, users can deposit Bitcoin and receive up to 95% of its value back in BTC immediately, at a fixed 5% rate deducted upfront as a fee. For instance, depositing 10 BTC yields 9.5 BTC instantly, with the full 10 BTC reclaimable upon repayment within 12 months. This high loan-to-value (LTV) ratio sets it apart from traditional fiat-backed loans, providing near-full access to value without the hassles of currency conversion or counterparty risks.
Dunworth highlighted the specific type of client best suited for Loan My Coins: experienced Bitcoin holders with at least 1 BTC, particularly those with a low cost basis. These individuals often acquired Bitcoin early, at prices far below current market levels, and view it as a generational asset. The service enables them to "put low cost base Bitcoin to work" by unlocking liquidity for strategic investments.
However, the interview included strong cautions. Dunworth repeatedly warned that borrowing adds inherent risk to any portfolio. Loan My Coins is not for beginners or those seeking quick cash for non-Bitcoin purposes, such as lifestyle expenses or high-risk trades unrelated to outperforming Bitcoin. He explained that the product is "largely designed for investors believing they can outperform Bitcoin." By borrowing BTC against BTC, users must deploy the loaned funds in ways that generate returns exceeding Bitcoin's own growth – otherwise, the 5% fee could erode gains.
Market volatility remains a factor; while there are no margin calls or forced liquidations, failure to repay could result in losing the collateral. Dunworth urged viewers to conduct thorough due diligence, assess their risk tolerance, and verify details independently. A key theme was the ultra-low-risk structure compared to industry norms. Powered by The Bitcoin Adviser's expertise in multisig security and collaborative custody, Loan My Coins eliminates counterparty exposure – users' Bitcoin is secured in a way that prevents third-party access or market-driven sales. Contrasting with fiat lending platforms, where borrowers face liquidation risks during downturns. The fixed 5% rate ensures predictability, avoiding variable interest that could balloon costs. This transparency, combined with quick onboarding and dedicated support (including a custom GPT for queries), positions it as a "Bitcoin innovator's solution" for freedom and security.
The talk also touched on broader implications for Bitcoin adoption. Dunworth, drawing from his multi-family office background, discussed how such products could bridge traditional finance and Bitcoin, allowing institutions to leverage undervalued collateral. He predicted that as Bitcoin matures, tools like Loan My Coins will empower users to navigate economic uncertainties, such as inflation or wealth taxes, by preserving sovereignty over their assets.
In summary, the conversation painted Loan My Coins as a game-changer for strategic Bitcoin holders, but not a one-size-fits-all tool. It's ideal for those with low cost base BTC looking to generate alpha, yet demands a clear plan to outperform Bitcoin's baseline performance.
Two Takeaway Actions:
- Evaluate your investment strategy: Before considering Loan My Coins, calculate if your intended use of borrowed BTC can realistically yield returns above Bitcoin's annual growth – consult a financial advisor if needed.
- Explore the service securely: Visit loanmycoins.com to simulate a loan scenario and review the comparison tools, ensuring it aligns with your HODL philosophy and risk profile.
