I understand the method of borrowing against 10% of your asset for example let's say Bitcoin is 1 million dollars and you own 1 bitcoin so you borrow $100,000. You make monthly payments on that and enjoy some of the $100,000. 1 year later bitcoin rises 15% for example and your asset portfolio has risen to 1,150,000. You borrow 10% again receiving $150,000 tax free dollars and pay off the remainder of the first loan. My question is won't this eventually catch up? Assuming bitcoin constantly goes up 15% yearly and the interest rate is 5.5% each loan for example wouldn't you be accruing more and more debt until you over borrow and lose all of it? Also what happens in the event of death on these loans? Will it be passed to next generation?
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