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How to become your own bank 🏦
Financial independence, (or self-sovereignty), is being able to take ownership of your assets and money. It’s having enough to do what you want with your time.
And no, financial independence isn’t just for the rich...
🧵
How to become your own bank 🏦
Financial independence, (or self-sovereignty), is being able to take ownership of your assets and money. It’s having enough to do what you want with your time.
And no, financial independence isn’t just for the rich...
🧵
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Financial sovereignty is a journey. One in which you become freer and more powerful over time, as your knowledge and toolset develops.
Bitcoin has opened the gates to a new age in which you can claim back control over your finances in a way that was previously impossible.
Financial sovereignty is a journey. One in which you become freer and more powerful over time, as your knowledge and toolset develops.
Bitcoin has opened the gates to a new age in which you can claim back control over your finances in a way that was previously impossible.
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Unlike other fiat currencies, where central issuers can print and devalue them overnight, #Bitcoin is ruled only by its code—which is protected by its community.
So, how do you get started on your journey?
Unlike other fiat currencies, where central issuers can print and devalue them overnight, #Bitcoin is ruled only by its code—which is protected by its community.
So, how do you get started on your journey?
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The traditional route for many has been to pursue a career and climb the corporate ladder until they reach a magic number—either as a salary or in savings.
This is becoming less viable.
Risks:
- Only one source of capital
- Money is constantly losing its value
The traditional route for many has been to pursue a career and climb the corporate ladder until they reach a magic number—either as a salary or in savings.
This is becoming less viable.
Risks:
- Only one source of capital
- Money is constantly losing its value
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Diversifying income streams is a good place to start to become more self-sovereign.
But it doesn’t solve the problem of money losing its value over time.
So how do rich people solve this?
In a word… assets!
Diversifying income streams is a good place to start to become more self-sovereign.
But it doesn’t solve the problem of money losing its value over time.
So how do rich people solve this?
In a word… assets!
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The idea of borrowing against an asset might sound foreign.
Except for a mortgage, where we take out a loan against an asset—a house—which acts as collateral for the loan.
But most people see a mortgage as a routine part of life rather than an obscure financial strategy.
The idea of borrowing against an asset might sound foreign.
Except for a mortgage, where we take out a loan against an asset—a house—which acts as collateral for the loan.
But most people see a mortgage as a routine part of life rather than an obscure financial strategy.
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Wealthy individuals borrow against assets all the time. A common phrase amongst them is “Buy, Borrow, Die”.
But how do they do it?
And more importantly… how can YOU also do this?
Wealthy individuals borrow against assets all the time. A common phrase amongst them is “Buy, Borrow, Die”.
But how do they do it?
And more importantly… how can YOU also do this?
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The main idea here is simple:
Don’t sell assets that tend to go up in value over time.
Borrow against them instead.
This changes your actions from those of a consumer to an investor.
The main idea here is simple:
Don’t sell assets that tend to go up in value over time.
Borrow against them instead.
This changes your actions from those of a consumer to an investor.
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It’s common for wealthy individuals to open a securities-backed Line of Credit (SBLOC). With this they can access the value of their securities, without selling them.
In this way they keep the long-term appreciation and use it to build more and more wealth for themselves.
It’s common for wealthy individuals to open a securities-backed Line of Credit (SBLOC). With this they can access the value of their securities, without selling them.
In this way they keep the long-term appreciation and use it to build more and more wealth for themselves.
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This opens up a ton of options. From paying off expenses, to using the Line of Credit to buy more assets that could increase in value over time.
In this way, the wealthy tend to become more and more wealthy.
The good news is…
You can now do this as well!
This opens up a ton of options. From paying off expenses, to using the Line of Credit to buy more assets that could increase in value over time.
In this way, the wealthy tend to become more and more wealthy.
The good news is…
You can now do this as well!
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A good way to start adopting this mindset is by running your finances as if you were operating a business.
Taking full advantage of your balance sheet to fund your spending and investing.
If you believe in #BTC, you want to buy, hodl, and never sell it.
A good way to start adopting this mindset is by running your finances as if you were operating a business.
Taking full advantage of your balance sheet to fund your spending and investing.
If you believe in #BTC, you want to buy, hodl, and never sell it.
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If you consider the opportunity cost of selling your bitcoin, the idea of #borrowing against it makes sense.
Hodling is hard, and you never want to be forced to sell.
Now, a tool is available to enable you to borrow against your #BTC, access its value, and avoid selling!
If you consider the opportunity cost of selling your bitcoin, the idea of #borrowing against it makes sense.
Hodling is hard, and you never want to be forced to sell.
Now, a tool is available to enable you to borrow against your #BTC, access its value, and avoid selling!
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Zero is a protocol that allows anyone to open a Line of Credit against their #Bitcoin at 0% interest.
It requires no KYC.
It allows #Bitcoiners to access a brand new stream of capital in order to start a business, buy a car, or buy more bitcoin!
Zero is a protocol that allows anyone to open a Line of Credit against their #Bitcoin at 0% interest.
It requires no KYC.
It allows #Bitcoiners to access a brand new stream of capital in order to start a business, buy a car, or buy more bitcoin!
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Since you are acting as both lender and borrower, there is no interest you need to pay.
And, no deadline for repayments.
You can choose whenever you are ready to pay back your loan and retrieve your initial collateral.
All while holding your private keys!
Since you are acting as both lender and borrower, there is no interest you need to pay.
And, no deadline for repayments.
You can choose whenever you are ready to pay back your loan and retrieve your initial collateral.
All while holding your private keys!
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Your bitcoin acts as collateral for the #loan and Zero issues a #stablecoin called ZUSD.
There is no middleman, just you and the smart contract. It does not require giving up control of your funds.
You are effectively your own bank!
Your bitcoin acts as collateral for the #loan and Zero issues a #stablecoin called ZUSD.
There is no middleman, just you and the smart contract. It does not require giving up control of your funds.
You are effectively your own bank!
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Keep in mind that bitcoin is a #volatile asset and the collateral ratio (the proportion of your bitcoin collateral value, to the loan you took out) must remain above 110% to avoid #liquidation.
More collateral can be added at any time if needed.
Keep in mind that bitcoin is a #volatile asset and the collateral ratio (the proportion of your bitcoin collateral value, to the loan you took out) must remain above 110% to avoid #liquidation.
More collateral can be added at any time if needed.
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Unlike traditional banks, #crypto exchanges, and custodial wallets, Sovryn and Zero operate in a completely decentralized way.
You hold the private keys. No third party has access to your funds.
This is a crucial part of the self-sovereignty journey!
Unlike traditional banks, #crypto exchanges, and custodial wallets, Sovryn and Zero operate in a completely decentralized way.
You hold the private keys. No third party has access to your funds.
This is a crucial part of the self-sovereignty journey!
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As the price of #Bitcoin continues to rise, so to do the benefits of borrowing against it.
Now we can all become our own bank and be fully sovereign individuals!
As the price of #Bitcoin continues to rise, so to do the benefits of borrowing against it.
Now we can all become our own bank and be fully sovereign individuals!
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Learn more about Zero on the Wiki: wiki.sovryn.app/en/sovryn-dapp…
And, sign up for Zero early access: bit.ly/3EWW3ab
Learn more about Zero on the Wiki: wiki.sovryn.app/en/sovryn-dapp…
And, sign up for Zero early access: bit.ly/3EWW3ab
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If you've found this thread helpful, please Like, Follow, and share the knowledge.
If you've found this thread helpful, please Like, Follow, and share the knowledge.
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