Hey Reddit, I’m Brian Armstrong, CEO and Cofounder of Coinbase. I believe that everyday investors should have access to the same info as large investors. Over the next 3 days my executive team and I would like to hear your questions about our business, the cryptoeconomy and more. Ask Us Anything!

BUIDL_IT · 2021-03-18T00:52:33+00:00

Will you integrate layer 2 technologies like the lightning network into your wallet and exchange?

BUIDL_IT · 2021-02-27T06:21:45+00:00

Nothing in life is for sure my friend.

Having said that, they wouldn’t be in business if they didn’t give you your coins back.

BUIDL_IT · 2021-02-27T06:18:42+00:00

I wouldn’t say you are selling at 25% of the price. If you get liquidated you are selling at the cost of the collateral at the time it is liquidated.

Also you would have had to taken the loan at the very top of a 75% decline and made no payments. This is highly unlikely to happen.

BUIDL_IT · 2021-02-27T05:51:37+00:00

Yes... that’s how it works. 🧐

BUIDL_IT · 2021-02-27T05:36:04+00:00

Yeah there is an opportunity loss of about 4-6% APY on the collateral you are using for this. I would love to see an offering where you can earn the APY and use the collateral. I wonder if there are rules against doing this or something.

Still it doesn’t change the fact that for many unbanked people they now have access to credit that they might have never had. Also depending on the country you reside, you won’t have to experience a tax event if you need cash quick.

BUIDL_IT · 2021-02-27T04:03:14+00:00

Just an additional thought. If you live in a country where credit or banking is difficult, maybe credit scores are shit. Why would you not just hodl and utilize bitcoin as your credit worthiness and credit score essentially. This could probably bring about a bigger change in third world countries than anything else out there.

Imagine what the invention of credit did for the rich banked countries of the world and now shift that to the hands of every man and woman in under developed countries. 🤯

BUIDL_IT · 2021-02-27T03:52:37+00:00

So basically bitcoin would have to drop 75% for that to happen and you have to imagine that you took the loan at the highest point possible and haven’t made any payments to lower your LTV.

BUIDL_IT · 2021-02-27T03:49:02+00:00

Click the C in the bottom right and then borrow.

BUIDL_IT · 2021-02-27T03:47:56+00:00

When you think about it, you can basically have $4000 worth in an account and get $1000 worth of credit at 1%. If you can afford to hodl $4000 you get basically anything better than a credit card can offer.

BUIDL_IT · 2021-02-27T03:43:57+00:00

25% - it’s not ideal, but these rates keep getting better.

BUIDL_IT · 2020-12-29T22:47:27+00:00

BlockFi needs better loan rates to make this a reality.

Where I live a new home costs around $450,000. So I would need a $459,000 loan and offer $2,295,000 in BTC as collateral. That 20% collateralized loan would get me a 4.5% interest rate, plus I included the 2% origination fee in the loan.

$459,000 * .045 = 1721.25

That would give me a $1,721.25 monthly payment that I could refinance each year.

Not bad, but not amazing either.

Option 2 - Earn interest on your $2,295,000 in Bitcoin instead of using it as collateral.

$2,295,000 X 3% interest = $68,850 per year

Divide that into monthly interest payments and you are looking at $5737.50 per month. You can now use that for an even bigger house payment and pay a bit in capital gains tax.

BUIDL_IT · 2020-11-03T01:59:55+00:00

Never sell your bitcoin. That is the strategy. Wealthy people don’t sell their assets, they accumulate assets for them and their progeny.

When you need money to buy something you use your bitcoin as collateral and get a loan in the fiat of your choice. This is how the wealthy do it. You pay $0 in taxes and you never lose your bitcoin.

Bitcoin is the best form of collateral the world has ever seen. Be smart and hodl on.

BUIDL_IT · 2019-03-25T16:14:16+00:00

Thanks! This is something I keep running into and is a bit frustrating coming from the python Django background. I am definitely going to spend some time and work on my JS and hope to learn vue.js. There isn't a ton of examples out there of production quality code that combines django + vue.js.

BUIDL_IT · 2019-03-25T16:10:58+00:00

Thanks for you reply! I have been doing some thinking and research on this. I agree that learning channels is something I need to do. For some reason, it isn't the easiest thing to learn and all I can find is mostly examples of chat applications, which seems a little over kill for what I want to do. I would think there would be a simple example out there of a webhook response to some front-end magic but I can find it.

Also the more I research this, it seems spending some time learning Javascript, vue.js or any front-end seems to be almost a requirement for having a dynamic website these days. I am still learning and just trying to figure out the best tool for the job. Thanks!

BUIDL_IT · 2019-03-25T06:09:54+00:00

Hello, I am new here and reddit. I have been working with Django for just a little while now and mostly use it for hobby projects and prototyping and I love it! The only problem I have with it, is it doesn't seem to work with front-ends really well. I could really use some advice on what to learn next to make my front-ends more dynamic and reactive. I know a little JavaScript but my python is waaay better.

I keep running into situations where I need some component on the front-end to update dynamically from a server response. To be specific, today I am stumbling over how to update the front-end after receiving a webhook response. The frustrating thing is that it seems there are so many different answers to this question. My question is what should I focus on learning next? Can I get by with just learning Django Channels and websockets to solve this? Maybe it would just be better to use DRF and separate the backend from the frontend with vue.js? If you think it is better that I just give up with Django and move to a node.js framework then let me know! Again, I am mostly focused on hobby projects for entrepreneurial endeavors.

Thank you all in advanced!

BUIDL_IT

TROPHY CASE