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Bitcoin Yield: How to earn passive income, borrow against Bitcoin.

#Make money
2025-09-04 12:398 min read

Content Introduction

In this video, the speaker discusses the potential of Bitcoin investments, noting its recent increase to $9800 and predicting a significant rise in value by 2025. The speaker highlights the advantages of leveraging Bitcoin for loans and explores new developments in decentralized finance (DeFi) allowing users to borrow against their Bitcoin holdings. They also compare lending models to traditional platforms like Celsius and FTX, emphasizing the security provided by current DeFi protocols. The video explains strategies for maximizing gains by taking advantage of low borrowing costs and leveraging Bitcoin ETFs for additional collateral. The speaker advises caution in using margin for investing and advocates for a focus on maintaining assets while utilizing their value for practical financial benefits. Throughout, they stress the importance of prudent investing and the transformative potential of Bitcoin in the future.

Key Information

  • Bitcoin's price is currently at $9800, showing an increase of 10%.
  • Those who leveraged their investments on Bitcoin could be up 50%.
  • 2025 is projected to be a significant year for Bitcoin's growth.
  • The speaker forecasts Bitcoin's target price to exceed gold's market cap of $18 trillion, meaning Bitcoin could increase by around 10x from its current value.
  • Coinbase has announced a feature allowing users to take loans against their Bitcoin, providing an opportunity to retain Bitcoin ownership while accessing liquidity.
  • Borrowers can get loans up to 86% of their Bitcoin's value at approximately 5% interest.
  • The speaker encourages leveraging Bitcoin investments while also stressing the importance of risk management.
  • Using margin loans against Bitcoin could pose risks if the market fluctuates significantly.
  • The narrative promotes using Bitcoin as collateral without losing ownership and emphasizes the potential yield from investments.
  • Utilizing platforms like Coinbase with low transaction fees and leveraging Bitcoin's growth can yield significant returns.

Timeline Analysis

Content Keywords

Bitcoin

The speaker discusses the recent rise in Bitcoin prices, noting an increase to $9800, and emphasizes the potential for Bitcoin to reach new heights in 2025, forecasting significant gains.

Bitcoin loans

Coinbase is introducing USDC loans against Bitcoin holdings, allowing users to deposit Bitcoin and borrow up to 86% of its value at approximately 5% interest. This feature can enhance liquidity and investment strategies.

Market Cap

Bitcoin is projected to surpass gold's market cap, with the current market cap being about 10 times less than gold. This indicates a significant growth potential for Bitcoin as an asset.

Leverage and collateral

The speaker addresses the use of Bitcoin as collateral for loans, discussing strategies to avoid liquidation while maximizing leverage, including the use of stocks for additional collateral.

DeFi

The discussion covers the integration of Bitcoin into decentralized finance (DeFi), highlighting the advantages of using Bitcoin-backed loans and emphasizing the importance of capital management.

Investment Strategies

The speaker encourages smart investment strategies like borrowing capital at low rates to invest in Bitcoin and highlights the importance of building wealth through effective money management.

Financial Safety

The video concludes with advice on financial safety, stressing the importance of not over-leveraging and suggests starting small to mitigate risks in market investments.

Related questions&answers

What is Bitcoin leveraged trading?

Bitcoin leveraged trading allows you to borrow funds to increase your position size, potentially leading to higher profits, but also higher losses.

How can I take loans against my Bitcoin?

You can deposit your Bitcoin on platforms like Coinbase and borrow up to 86% of its value at around 5% interest.

What is the potential target price for Bitcoin?

The potential target price for Bitcoin is projected to be between 400k to 800k, with some forecasts predicting a value surpassing gold in the future.

Is Bitcoin a safe investment?

While Bitcoin has shown significant growth, it is also volatile. It's important to assess your risk tolerance before investing.

How do I earn yield on my Bitcoin?

You can earn yield on your Bitcoin by using lending platforms or through decentralized finance (DeFi) applications that offer interest on Bitcoin deposits.

What risks are associated with Bitcoin loans?

The risks include liquidation if the value of Bitcoin falls below a certain threshold and the possibility of losing the collateral used to secure the loan.

What is the importance of AUM in investing?

AUM, or assets under management, is crucial as it allows each dollar to work for you, generating potential future earnings without having to work yourself.

Can I use Bitcoin to avoid taxes?

By borrowing against your Bitcoin instead of selling it, you may delay realizing capital gains and thus the associated taxes.

How does inflation affect Bitcoin investments?

With inflation rates possibly around 10%, Bitcoin has been averaging returns of about 29% year-over-year, making it a potentially valuable asset.

What are the benefits of using low-interest margin loans?

Using low-interest margin loans allows you to leverage your investments further without relinquishing your Bitcoin, helping to maximize potential returns.

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