Mind-Bending Money Hack
Game the financial system to your advantage.
You have a grand opportunity.
You are still living in the unsound fiat financial system and you have the sound financial system, Bitcoin, available to you before 98% of the world wakes up and realizes what’s going on.
You are living through the death and birth of fiat and Bitcoin.
In terms of most-significant-time-periods-in-human-history, that is 99th percentile.
But, today, we’re not going to talk about the significance in terms of what that means for humanity. We’re going to talk about the significance in terms of what that means for you and how you can leverage the fact that you are still living in the fiat world to ultimately acquire free BTC.
Fiat is unsound money. In short, the system runs on credit, aka debt. Financial institutions, banks, governments, and other lenders hand out money like there’s an endless supply of it — because there is.
Fiat can only exist if credit issuance continues to rise. More credit must be issued to pay off and cheapen past credit. This is how the U.S. Government sustains itself (I can’t wait for you to read the chapter, “The Greatest Ponzi Scheme of All-Time” in my upcoming book, “The Bitcoin Thesis”).
This fact may or may not put you at an advantage. Credit (debt) can be a serious burden, if not used optimally. But that’s where your grand opportunity is born.
Because of Bitcoin, and because you still exist in the fiat financial system, you can use credit, which is free money (money you otherwise wouldn’t have), to your most optimal advantage.
Let me show you an example.
This is a real offer from a financial institution given to somebody I know. Let’s say that the offer is being given to you.
The offer is a personal loan for $50,000. The loan will be paid off over five (5) years, with a monthly payment of $1,598.
You would be receiving $50,000 today and paying out a total of $95,880 over five years.
That’s horrible — in USD terms.
But we don’t care about an unsound monetary denominator. As smart, intelligent, and sound economic participants, we measure value with a sound monetary denominator. That is Bitcoin — BTC.
This is where the tides turn, the math works in your favor, and your grand opportunity arises.
$50,000 today is equal to 0.72 BTC today.
$1,598 per month is equal to a monthly payment of 0.02315 BTC today.
Five years of payments would be $95,880, but in BTC terms today, it would be 1.389 BTC.
Let’s step into theoretical possibility.
You take out the personal loan today and you immediately buy $50,000 of BTC. Congrats, you now own 0.72 BTC.
If you could manage to make the monthly payments with your current cash-flow/income, that would be best, but let’s imagine that you don’t have that ability.
Let’s imagine you use the purchased BTC to pay off the loan.
If you are left with any amount of BTC after the five year term, you have acquired BTC at no cost.
We’ll assume BTC will grow at a 50% compound annual growth rate over the next five years. That would look like this:
Year 0: $69,000.00
Year 1: $103,500.00
Year 2: $155,250.00
Year 3: $232,875.00
Year 4: $349,312.50
Year 5: $523,968.75
It’s reasonable to believe that one bitcoin will be worth $523,000 in late 2029. There will be ups and downs, but listen, Bitcoin is the greatest store of value in the market, and every market participant and every ounce of money is looking for the greatest store of value. It’s all coming to Bitcoin for those reasons, whether you like it or not.
In all honesty, $523,000 could end up falling way short of BTC’s actual 2029 price. I wouldn’t bet against it.
It could also be an overestimate. At the end of the day, we have no idea what one bitcoin will be worth in USD terms in 2029. We’ll call it accurate for the sake of this article.
Remember, you are paying off the loan in BTC terms, not USD terms.
You’re not paying the fixed 0.02315 in BTC per month, but you are paying the fixed $1,598 per month.
If Bitcoin were to double in price, your 0.72 BTC would be worth $100,000. The fixed loan payment would still be $1,598. With Bitcoin’s value appreciation, that $1,598 now costs 0.011575 BTC. The cost to pay off the loan has now been cut in half in BTC terms. Do you see?
Using the 50% CAGR number crunch, we can calculate the average cost of BTC over the next five years. That would be $238,984.38.
We’ll call that an overestimate, so we’ll cut that number by almost 20% to bring it down to $200,000.
This is the average price of BTC over the term of your loan, and because we are using BTC to pay off the loan, this will also determine the average cost of your monthly payment.
1 BTC = $200,000. Your fixed monthly payment is $1,598.
To figure out how much your average monthly cost would be in BTC terms, you would calculate how much $1,598 is worth in BTC terms with 1 BTC being worth $200,000.
$1,598 in BTC terms is 0.00799 BTC per month.
0.00799 BTC per month x 60 months (five years) = a total cost of 0.4794 BTC.
0.72 BTC acquired minus the total cost of the loan at 0.4794 BTC leaves you with 0.2406 BTC.
But… taxes. Take off 20% for simple math’s sake. You’d have 0.19248 BTC in your pocket.
The cost to acquire that BTC? Zero. You received $50,000 out of thin air and paid back less than that.
You could look at it through a fiat lens. Your $50,000 essentially appreciated to $144,000 (0.72 BTC when 1 BTC is $200,000 would equal $144,000). Your cost to pay off the loan was $95,880 — $144,000 minus $95,880 equals $48,120. Take 20% off for taxes, that leaves you with $38,496, which is the same value as 0.19248 BTC when 1 BTC = $200,000.
You pocketed $38,496 for doing absolutely nothing other than taking advantage of the grand opportunity in front of you.
Not bad.
But we don’t care about dollars. You pocketed 0.19248 BTC for free. The best part? That 0.19248 BTC is only going to appreciate even more in value over time, making your decision even more lucrative.
This is not foolproof and certainly not financial advice. You have freedom of choice. But let me show you another way to leverage the fiat system to your advantage. This one might not scare you as much.
This is real and what spawned my idea for this article.
Money hack:
I just booked a flight for $455.56.
Instead of paying it off all at once, I opted for a 12 month payment plan at $45.75/month, totaling $549.05.
On the surface, I’m paying an extra $93.49, but that won’t be the reality.
By using this money hack, the flight will be much cheaper.
My first payment is due November 15, 2024. After my first six months, I will have paid $274.50, leaving me with $274.55 on the bill.
Here’s the hack:
I won’t be paying the original $455.56 for the flight today.
I will be buying $274.55 of Bitcoin today.
In six months, Bitcoin will have doubled in value (ifkyk). My $274.55 purchase of BTC will be worth $549.10.
I can then sell half of the BTC to pay off the remaining $274.55 for my airplane ticket.
The ticket price has now been cut in half, and I still have $274.55 remaining in Bitcoin.
If that remaining Bitcoin then doubles, the ticket effectively becomes free, because I will have gained $549.10 in value through today’s purchase of BTC instead of paying for the ticket in full today.
Do you see?
Game theory optimal at your time in human history is to take out as much credit as you can assuredly pay off, at the longest loan term you can possibly get, use the credit to buy BTC, and watch as the loan becomes cheaper and cheaper to pay off in BTC terms over time.
The further out into time you can bring BTC’s buying power to today, the more you will prosper. It’s better to pay off a loan with BTC 30 years into the future than five years into the future. BTC will have appreciated much more 30 years from now than five years from now, making the loan much less expensive in the former timeframe.
Let me show you another way to game the fiat system to your advantage.
Hunt down a consistently profitable, cash-flowing business. Raise equity or use your own capital. Take out fiat financing to buy the business. You want the lowest down payment and the longest loan term possible. Be willing to pay a bit more in interest to make this happen. Acquire the business. Use your non-down-payment capital to stack BTC. Use as much of the business’s cash-flow to make the loan payments. With any remaining cash-flow, stack BTC. The lower the down payment, the more BTC you can stack now. The longer the loan, the lower the (ideally fixed) monthly payment, the more BTC you can stack as you receive cash-flow from the business. Once the loan has been paid off, you have a consistently profitable, cash-flowing business that you can stack BTC with month after month, on top of the BTC you stacked with your starter capital. The more cash-flowing equity/businesses you can feasibly buy and operate, the better.
That’s essentially Gaiter Capital, although our vision is even more exciting. If you want to join that journey, reach out here: https://www.gaitercapital.com/contact
I want to remind that you are being presented with an opportunity that 99.999999999% of all humans will never be presented with. That opportunity is first and foremost that you can buy Bitcoin, but it is also that you can leverage the unsound credit nature of fiat to acquire Bitcoin in even greater amounts at even lower costs.
Don’t squander it. If you don’t want to jump through the hoops of credit, fine, but at the least… buy Bitcoin.
And have fun doing it ;)
This article took lots of math and lots of thought. More, not all, future content will be only accessible to paid subscribers. If you want to sign-up, it’s a cup of coffee a month or $50 a year (unfortunately I don’t offer credit options, lol). Link is below.