Latest / The Paul Barron Crypto Show / Buy The Shutdown?📉Borrow Strategy with Hunter Albright | SALT INTERVIEW

Transcript

Buy The Shutdown?📉Borrow Strategy with Hunter Albright | SALT INTERVIEW · The Paul Barron Crypto Show

• 0:00
  Speaker 1: We'll dive into it today. Everybody's asking how do you
• 0:02
  Speaker 1: play this government shutdown? We're going to answer that for you.
• 0:05
  Speaker 1: Guys are going to want to stick around. Let's get
• 0:07
  Speaker 1: into the show. I do want to showcase a couple
• 0:09
  Speaker 1: of things here first, to just kind of show you
• 0:11
  Speaker 1: where we are right now. The potential shutdown is rising
• 0:15
  Speaker 1: dramatically as we get to eighty seven percent right now
• 0:19
  Speaker 1: over on polymarket, and what this might mean for the market.
• 0:24
  Speaker 1: Of course, everybody might look at this and go, hey,
• 0:25
  Speaker 1: that means don't buy right now, because of course investors
• 0:29
  Speaker 1: should not worry about the shutdown of courses. Kramer sometimes
• 0:32
  Speaker 1: you trade him in verse, but I think he actually
• 0:34
  Speaker 1: may have called the bottom on bitcoin the other day,
• 0:37
  Speaker 1: which was when he said, hey, go out and get crypto,
• 0:40
  Speaker 1: and it.
• 0:41
  Speaker 2: Was a good move.
• 0:42
  Speaker 1: The other thing that's playing into this is when you
• 0:44
  Speaker 1: look at this happening in less than eighteen hours, Democrats
• 0:48
  Speaker 1: and Republicans are deadlocked right now on funding the government.
• 0:52
  Speaker 1: Fifty four percent of stock markets do go up during
• 0:54
  Speaker 1: the shutdowns and forty six percent of the time they
• 0:57
  Speaker 1: go down, so it's kind of a split number. But
• 1:00
  Speaker 1: twelve months later, markets are usually positive so at least
• 1:03
  Speaker 1: if you're looking out across you know how to play
• 1:06
  Speaker 1: these markets. This is a good example. Now we're going
• 1:09
  Speaker 1: to bring a guest on here in a minute, and
• 1:11
  Speaker 1: we're going to dive into how do you do this
• 1:14
  Speaker 1: maybe through the eye of using a bitcoin loan or
• 1:17
  Speaker 1: using a digital asset loan, and it'll give you more
• 1:20
  Speaker 1: of a strategy play that I think you guys are
• 1:22
  Speaker 1: going to want, because when you look at all of this,
• 1:25
  Speaker 1: the big issue is really going to boil down to
• 1:28
  Speaker 1: one thing, and that is how does the dollar hold
• 1:31
  Speaker 1: up against digital assets? I want to go to a
• 1:33
  Speaker 1: clip real quick. This is Bloomberg talking about if the
• 1:37
  Speaker 1: dollar will suffer. Take a look.
• 1:39
  Speaker 3: I think overall, what government shutdown means is not major
• 1:43
  Speaker 3: economic impact unless it extends, and obviously we don't know
• 1:46
  Speaker 3: how long it extends until we see it plagged. The
• 1:48
  Speaker 3: assumption is it will only last a short period of
• 1:50
  Speaker 3: time and then we'll move on from it, which means
• 1:53
  Speaker 3: that the underlying trends continue because we generally get a
• 1:57
  Speaker 3: not only kind of a delay of some data, but
• 1:59
  Speaker 3: we get you know, suspicion of the data that we
• 2:02
  Speaker 3: do get the underlying bias. There is still to slowly
• 2:05
  Speaker 3: reduce those long term exposure to the dollar, and I
• 2:08
  Speaker 3: think that is the path of least resistance is a
• 2:10
  Speaker 3: slightly weaker dollar over the coming days and weeks.
• 2:13
  Speaker 1: All right, So weeker dollar means risk on guys. This
• 2:16
  Speaker 1: is going to where you're going to acquire more bitcoin,
• 2:18
  Speaker 1: more theoreum, those kind of assets out there. So we
• 2:21
  Speaker 1: thought let's bring in one of our partners. This is
• 2:23
  Speaker 1: doctor Hunter Albright, who's the cro over at Salt Lending.
• 2:26
  Speaker 2: How are you, Hunter, I'm doing well, Paul, great to
• 2:29
  Speaker 2: be here.
• 2:29
  Speaker 1: Nice to see you again. We add you on not
• 2:31
  Speaker 1: too long ago, very popular video by the way, and
• 2:35
  Speaker 1: everybody was saying, hey, this is the time to maybe
• 2:37
  Speaker 1: look at lending in general. Give me a quick rundown
• 2:40
  Speaker 1: on Salt. What you guys offer in terms of assets
• 2:43
  Speaker 1: right now that are on the platform that I can
• 2:45
  Speaker 1: go take a long against.
• 2:47
  Speaker 2: Yeah.
• 2:47
  Speaker 4: So Salt's original bitcoin lender, been around since twenty sixteen.
• 2:51
  Speaker 4: We lend against bitcoin, ethereum and stable coins or the
• 2:55
  Speaker 4: primary assets that people take advantage of from a lending perspective.
• 3:00
  Speaker 1: Yeah, if you look at the market, you've got October
• 3:05
  Speaker 1: coming and listen, we have had some big run ups
• 3:08
  Speaker 1: here in October. In these past years, if you look
• 3:11
  Speaker 1: all the way back into twenty nineteen with our biggest
• 3:14
  Speaker 1: run up, which was right there in twenty twenty one
• 3:17
  Speaker 1: thirty nine percent.
• 3:18
  Speaker 2: That was during the.
• 3:19
  Speaker 1: Last major market up tick on bull run and a
• 3:23
  Speaker 1: lot of times people would say, all right, well, what
• 3:25
  Speaker 1: are ways that I can really prep and maximize this?
• 3:28
  Speaker 1: And strategies usually go either in I need to buy
• 3:32
  Speaker 1: more bitcoin or how do I buy more bitcoin if
• 3:35
  Speaker 1: I don't if I'm already locked into bitcoin? And that
• 3:37
  Speaker 1: opens up the opportunity of lending against a certain amount
• 3:41
  Speaker 1: of bitcoin. When you look at strategies that investors are taking,
• 3:45
  Speaker 1: for you, guys, hunter, what is the number one area
• 3:48
  Speaker 1: that you find, Like you're perfect customer that comes in
• 3:51
  Speaker 1: and says, hey, I've got X amount of bitcoin, this
• 3:54
  Speaker 1: is what I want to do with it. What are
• 3:56
  Speaker 1: you guys finding as kind of the leader for that.
• 4:00
  Speaker 4: Yeah, talk about two different scenarios that we're seeing frequently.
• 4:04
  Speaker 4: One is we know that there's people out there and
• 4:06
  Speaker 4: we work with a lot of people that have a
• 4:08
  Speaker 4: lot of US dollars today, and so they're looking for
• 4:11
  Speaker 4: opportunities and timing about how do they start to convert
• 4:14
  Speaker 4: their dollars into bitcoin. And I think especially with sort
• 4:18
  Speaker 4: of the market instability, the market sort of volatility that
• 4:22
  Speaker 4: is potentially coming right, it creates a great opportunity for
• 4:26
  Speaker 4: people to think about, how do I take some of
• 4:27
  Speaker 4: that dry powder and start to buy in and buy bitcoin,
• 4:31
  Speaker 4: especially if there's concerns about the value of the dollar
• 4:35
  Speaker 4: on the other side. Or another scenario that we see
• 4:38
  Speaker 4: a lot is people that have bitcoin and then are
• 4:41
  Speaker 4: borrowing against their bitcoin to buy more bitcoin, and that
• 4:44
  Speaker 4: has a couple different sort of opportunities. You're increasing your
• 4:47
  Speaker 4: exposure to the asset for a lot of our customers,
• 4:51
  Speaker 4: and this is not financial advice, but a lot of
• 4:53
  Speaker 4: customers will buy bitcoin put it back into their clatteral
• 4:56
  Speaker 4: portfolio to further lower their LTV. It is a strategy
• 5:01
  Speaker 4: that they're taking, taking part in, and executing in order
• 5:06
  Speaker 4: to get sort of long term exposure. And you know,
• 5:09
  Speaker 4: as you and I were talking a little bit before
• 5:10
  Speaker 4: the show, there's other things that go into that. What
• 5:12
  Speaker 4: is people's time horizon short term, long term, but also
• 5:16
  Speaker 4: how much of their portfolio are they doing that with
• 5:19
  Speaker 4: and they're you know, depending on their own risk profiles.
• 5:23
  Speaker 4: They can start to think about how they want to
• 5:24
  Speaker 4: position their portfolio for both near term flexibility by having
• 5:29
  Speaker 4: an asset they can borrow against, but also longer term
• 5:32
  Speaker 4: gains for what they're trying to do on their wealth creation.
• 5:36
  Speaker 1: Well, and you look at long term gains, typically people
• 5:40
  Speaker 1: will lock in on a handful of assets and look
• 5:43
  Speaker 1: to hold those over a long period of time. Gold
• 5:46
  Speaker 1: is a good example of one. Bitcoin bin has been
• 5:48
  Speaker 1: highly correlated to gold with like a eight week lag.
• 5:51
  Speaker 1: Right now gold hitting all new highs, could bitcoin be
• 5:55
  Speaker 1: right behind it? And if you look at where bitcoin
• 5:57
  Speaker 1: is right now, some people would say, hey, let's and
• 6:00
  Speaker 1: I have some Bitcoin, but I want to acquire more
• 6:02
  Speaker 1: because I feel like we're going to see a potential
• 6:03
  Speaker 1: uptrend here. Is that the timing in which you would
• 6:07
  Speaker 1: go into someone like Salt Lending and say, now is
• 6:10
  Speaker 1: the time I want to do a bitcoin loan?
• 6:14
  Speaker 4: So I would, I mean, I would encourage anybody that
• 6:16
  Speaker 4: hasn't tried, that has bitcoin, hasn't tried a bitcoin loan
• 6:20
  Speaker 4: or a loan against ethereum, to start small and try
• 6:22
  Speaker 4: it right. You need to learn the mechanics of the
• 6:26
  Speaker 4: tool so that you can leverage it in your portfolio.
• 6:30
  Speaker 4: But once you have those basic skills right, there's a
• 6:33
  Speaker 4: lot of different scenarios that you can take advantage of it.
• 6:36
  Speaker 4: I think in this period of there are going to
• 6:38
  Speaker 4: be people if people get laid off and are impacted
• 6:41
  Speaker 4: by the government shutdown, there's going to be a group
• 6:43
  Speaker 4: of people that might be looking at borrowing against their
• 6:45
  Speaker 4: bitcoin just to meet in to make ends, to meet
• 6:49
  Speaker 4: payroll in their businesses, to meet pay expenses on their
• 6:52
  Speaker 4: personal life. And then on the other side, there are
• 6:55
  Speaker 4: going to be people that can take advantage of potential
• 6:58
  Speaker 4: drops in the price to buy in with dry powder
• 7:02
  Speaker 4: or borrowing against other assets that they have to take
• 7:05
  Speaker 4: advantage of that market opportunity.
• 7:08
  Speaker 1: I was looking at this right here. I didn't realize
• 7:11
  Speaker 1: how big this market is growing. This was a billion
• 7:13
  Speaker 1: in loans taken against bitcoin. This was over on coinbase.
• 7:17
  Speaker 1: And what we're finding now is all lenders. Now there's
• 7:21
  Speaker 1: multiple lenders out there, Sault being one of them, that
• 7:23
  Speaker 1: are really kind of leveraging the overall market. I'm kind
• 7:27
  Speaker 1: of curious, Hunter, what do you guys think the market
• 7:30
  Speaker 1: potential is here just in the next couple of years
• 7:33
  Speaker 1: for digital asset lending.
• 7:36
  Speaker 4: So we see it continuing to grow with sort of
• 7:40
  Speaker 4: the market as a whole, but with a lot of
• 7:42
  Speaker 4: new entrants. I was in Asia Pacific sort of month
• 7:46
  Speaker 4: and a half ago, and just even as we start
• 7:49
  Speaker 4: to see the global demand both from an individual perspective
• 7:52
  Speaker 4: and then companies, I think that's going to drive the
• 7:57
  Speaker 4: drive the price up because more people are going to
• 7:59
  Speaker 4: want to buy in, but will increase the amount of
• 8:02
  Speaker 4: lending that is taking place because all of those own
• 8:06
  Speaker 4: bitcoin owners are looking for liquidity. They'll need it either
• 8:09
  Speaker 4: for emergency or specific purchases, or they're going to use
• 8:13
  Speaker 4: it to make additional investments in their business or in
• 8:16
  Speaker 4: other assets.
• 8:16
  Speaker 2: From a personal perspective, yeah.
• 8:19
  Speaker 1: I'm looking at kind of the array right here, new
• 8:21
  Speaker 1: players rapidly building out the financial services stack. You guys
• 8:24
  Speaker 1: of course are listed there in the loan section with
• 8:28
  Speaker 1: others and brokers exchanges. This is kind of a new
• 8:31
  Speaker 1: era of a lot of new finance companies and fintech
• 8:35
  Speaker 1: in general that are really taking over. This is an
• 8:38
  Speaker 1: interesting component because when you look at the mechanics of
• 8:42
  Speaker 1: how the market works and the opportunity that that brings,
• 8:46
  Speaker 1: it's really going to open up. I think some big
• 8:48
  Speaker 1: opportunities for guys like you. Talk to me a little
• 8:51
  Speaker 1: bit about when you get into putting a loan together,
• 8:54
  Speaker 1: because this is something you just mentioned in terms of
• 8:57
  Speaker 1: a skill set understanding LTV and I know there's three
• 9:02
  Speaker 1: different areas. There's kind of the more conservative, a little
• 9:05
  Speaker 1: bit more aggressive, and the super aggressive. But explain that
• 9:09
  Speaker 1: on your platform and how it's used. I'm going to
• 9:12
  Speaker 1: open up the platform to kind of show people, but
• 9:13
  Speaker 1: talk me through that.
• 9:15
  Speaker 2: Yeah, I'll be happy to.
• 9:17
  Speaker 4: And then the first thing I want to say is,
• 9:18
  Speaker 4: I think you're right. I think there's big changes taking
• 9:20
  Speaker 4: place right this. I think what we're seeing is really
• 9:22
  Speaker 4: the democratizing of wealth building and so coming along with
• 9:26
  Speaker 4: those tools and the assets that anybody can get access
• 9:30
  Speaker 4: to now is people need to learn about it. And
• 9:34
  Speaker 4: the wealthy have been using leverage, have been borrowing against
• 9:37
  Speaker 4: their assets for centuries in order to get an advantage
• 9:42
  Speaker 4: in order to take you know, be efficient with not
• 9:44
  Speaker 4: having to pay taxes, being able to sort of get
• 9:47
  Speaker 4: liquidity out of value that they've already created. And so
• 9:52
  Speaker 4: with the digital asset with bitcoin, that's continuing and now
• 9:55
  Speaker 4: with all the other tools and the ecosystem that is
• 9:58
  Speaker 4: building around that is being built up around the assets.
• 10:02
  Speaker 4: It's really important for people to understand the different tools
• 10:05
  Speaker 4: and increase their own financial literacy so they can take
• 10:08
  Speaker 4: advantage of the strategies and tactics and so what you're
• 10:12
  Speaker 4: talking about here, and for anybody that takes out a
• 10:15
  Speaker 4: bitcoin back loan, a digital asset back loan, one of
• 10:19
  Speaker 4: the key mechanics to understand is the LTV, which stands
• 10:23
  Speaker 4: for loan to value ratio, and so you can think
• 10:26
  Speaker 4: of a thirty percent loan, I'm sorry, a thirty percent
• 10:29
  Speaker 4: LTV loan as being much more conservative.
• 10:33
  Speaker 2: Right.
• 10:33
  Speaker 4: You can absorb a price drop of up to line
• 10:37
  Speaker 4: around sixty seven percent, so you don't have to worry
• 10:40
  Speaker 4: about margin calls, you don't have to worry about sort
• 10:42
  Speaker 4: of stabilization or liquidation depending on the lender you're with,
• 10:47
  Speaker 4: until there's been a drop of around sixty seven percent.
• 10:50
  Speaker 4: So we see people that are taking out loans to
• 10:53
  Speaker 4: fund retirement, people that are taking out loans against their
• 10:57
  Speaker 4: nest egg, which is almost all in bitco, tend to
• 11:01
  Speaker 4: skew more towards the twenty thirty percent LTV to take
• 11:04
  Speaker 4: a really conservative approach, knowing that they probably were going
• 11:08
  Speaker 4: to want to take out more money on an annual
• 11:11
  Speaker 4: basis or on a regular basis to sort of fund
• 11:14
  Speaker 4: their lifestyle. And then we see and then we see
• 11:18
  Speaker 4: customers that are taking out loans that are in the
• 11:20
  Speaker 4: sixty to seventy percent LTV ratio, where they might be
• 11:24
  Speaker 4: leveraging a smaller percentage of their overall portfolio, but they're
• 11:28
  Speaker 4: trying and have a more short term goal of more
• 11:31
  Speaker 4: rapid growth and wealth building, and so they're willing to
• 11:34
  Speaker 4: take on that risk. They might also have dry powder
• 11:38
  Speaker 4: and additional assets that they know they can bring to
• 11:40
  Speaker 4: the platform should they need it, So they are, but
• 11:44
  Speaker 4: they're choosing to use a loan in a more leverage way.
• 11:48
  Speaker 1: So okay, so you get someone that's doing a thirty
• 11:51
  Speaker 1: percent LTV, what are you finding? What are they using
• 11:54
  Speaker 1: it for? Are they going back in the digital assets space?
• 11:57
  Speaker 1: They're trying to use it for. Where is the I
• 12:00
  Speaker 1: guess the arbitrage being played out in the markets right now.
• 12:05
  Speaker 4: Well, I think for some people they are in the
• 12:08
  Speaker 4: lower LTV range, they're borrowing against it to live their life,
• 12:11
  Speaker 4: they're retiring off it that they're funding their lifestyle. But
• 12:15
  Speaker 4: others are borrowing to invest either in more bitcoin and
• 12:19
  Speaker 4: digital assets, but also choosing to and this is a nutrend.
• 12:23
  Speaker 4: In fact, we were working with a scuba company recently
• 12:27
  Speaker 4: who bought bitcoin about two years ago. They're now converting
• 12:32
  Speaker 4: percentage of their revenue on a regular basis into bitcoin,
• 12:35
  Speaker 4: and they are starting to borrow against it in a
• 12:38
  Speaker 4: conservative way to fund business investments. They want to add
• 12:42
  Speaker 4: in a new location, add in a new product line.
• 12:45
  Speaker 4: And so I think it's going to be a really
• 12:47
  Speaker 4: exciting time not only for individuals but small and medium
• 12:51
  Speaker 4: sized businesses about how they start to think about using
• 12:55
  Speaker 4: bitcoin so they don't have to rely on some of
• 12:57
  Speaker 4: the more traditional methods.
• 13:00
  Speaker 2: Yeah.
• 13:00
  Speaker 1: Well, I mean in the past, it's always been taking
• 13:03
  Speaker 1: a loan out against the equity in my business, taking
• 13:06
  Speaker 1: a loan out against the equity in my homes or
• 13:08
  Speaker 1: my real estate investments that I've had out there. This
• 13:11
  Speaker 1: opens up a whole new array of strategies because me
• 13:15
  Speaker 1: as a bitcoin investor, I can go out by half
• 13:18
  Speaker 1: a bitcoin today, a tenth of a bitcoin, whatever I
• 13:21
  Speaker 1: might need at that time, and then just build that
• 13:24
  Speaker 1: pile up and know that I've got an asset there
• 13:26
  Speaker 1: that I can take a loan on and not pay
• 13:28
  Speaker 1: taxes on my capital gain since I'm not taking them,
• 13:32
  Speaker 1: it creates a new strategy. For sure. Are you finding
• 13:35
  Speaker 1: businesses because this is the one area that we're seeing
• 13:38
  Speaker 1: a lot of growth in is business owners that have
• 13:40
  Speaker 1: kind of figured out this hack and are starting to
• 13:43
  Speaker 1: implement this. Is that What would you say right now,
• 13:46
  Speaker 1: is it retail or businesses that are our most popular
• 13:49
  Speaker 1: on your platform?
• 13:50
  Speaker 4: I would say, I mean we have a large retail portfolio,
• 13:54
  Speaker 4: but in terms of more recent interest over the last
• 13:57
  Speaker 4: three to six months, businesses are rapidly trying to come
• 14:00
  Speaker 4: in and get educated and understand how they do it,
• 14:03
  Speaker 4: not only with what bitcoin they already have, but how
• 14:06
  Speaker 4: they get started. I think the exposure that the metaplanets
• 14:11
  Speaker 4: and the micro strategies have brought to treasury management in
• 14:15
  Speaker 4: general and how to use bitcoin within that overall approach
• 14:19
  Speaker 4: and strategy is elevating the number of companies that are
• 14:22
  Speaker 4: trying to get smarter about doing it, because not only
• 14:25
  Speaker 4: can they benefit financially, but they also benefit from execution speed.
• 14:30
  Speaker 4: They don't have to go to a regional bank to
• 14:32
  Speaker 4: go through an underwriting process. If they want to borrow
• 14:35
  Speaker 4: against it, they can do it within twenty four to
• 14:37
  Speaker 4: forty eight hours and have cash in their business. We've
• 14:41
  Speaker 4: worked with restaurant owners who have had to borrow against
• 14:44
  Speaker 4: bitcoin just to meet monthly payroll because of a drop
• 14:48
  Speaker 4: in visitors to the restaurant. So having that flexibility and
• 14:53
  Speaker 4: that agility will, I think will pair really well with
• 14:57
  Speaker 4: the appreciation forecasts for the asset and how companies can
• 15:01
  Speaker 4: think about not only growing the value of the business,
• 15:04
  Speaker 4: but funding it in a way where hopefully the owners
• 15:07
  Speaker 4: can retain the business equity and continue to build up
• 15:10
  Speaker 4: value on that side as well well.
• 15:13
  Speaker 1: And in many cases, I think a lot of people
• 15:15
  Speaker 1: and this is something that we're working on in terms
• 15:17
  Speaker 1: of a strategy with one of our financial advisors, is
• 15:20
  Speaker 1: how do we leverage against digital assets reinvest that into
• 15:24
  Speaker 1: businesses to create more equity play, because now you're really
• 15:28
  Speaker 1: building on two equity piles. You're building on a bitcoin
• 15:31
  Speaker 1: equity pile and you're building on a business equity pile,
• 15:34
  Speaker 1: which is like, I feel like it's almost unfair in
• 15:37
  Speaker 1: the sense of it's like a hack, and it's a
• 15:40
  Speaker 1: great one because normally you don't see assets moving like
• 15:43
  Speaker 1: what we see with bitcoin out there. I want to
• 15:46
  Speaker 1: showcase one article here institutions now holding eighteen percent of
• 15:50
  Speaker 1: total bitcoin supply. And here's my question, with this much
• 15:54
  Speaker 1: institutional investment into bitcoin, do you think we are at
• 15:58
  Speaker 1: a point right now? Bitcoin most likely is going to
• 16:02
  Speaker 1: stabilize and we won't see these massive drawdowns in the
• 16:06
  Speaker 1: markets that we've seen on bitcoin and other digital assets
• 16:09
  Speaker 1: in the past.
• 16:12
  Speaker 2: So I don't know where the price is going to go.
• 16:15
  Speaker 4: I do think we're going to continue to see volatility,
• 16:17
  Speaker 4: but it will start to narrow, you know. I think
• 16:20
  Speaker 4: people are really getting the message that, you know, you
• 16:24
  Speaker 4: don't want to sell your bitcoin. You can get liquidity
• 16:27
  Speaker 4: out of it in other ways, you can leverage it
• 16:29
  Speaker 4: in other ways. I think the portability of it, the
• 16:32
  Speaker 4: divisibility of it is, you know, the scarcity of it,
• 16:37
  Speaker 4: is really going to continue to drive a lot of interest.
• 16:40
  Speaker 4: Where as long as as long as there continues to
• 16:43
  Speaker 4: be an ecosystem that will support all of the services
• 16:47
  Speaker 4: around bitcoin in terms of borrowing against it, you know,
• 16:51
  Speaker 4: and then leveraging it in different ways, buying it, leveraging it,
• 16:56
  Speaker 4: and then sort of custoding it, then I think we'll
• 16:59
  Speaker 4: continue to see more businesses as well as more individuals
• 17:02
  Speaker 4: start to get in to understand how they can participate.
• 17:06
  Speaker 2: And then I mean, my own sort.
• 17:08
  Speaker 4: Of thinking is that we're five to ten years at
• 17:10
  Speaker 4: of minimum away from sort of more stabilization, from a
• 17:14
  Speaker 4: sort of slowing down of the growth, because I still
• 17:18
  Speaker 4: think we're super early in terms of the understanding, because yeah,
• 17:22
  Speaker 4: I mean, I think I think what we're seeing is
• 17:25
  Speaker 4: not only do we have to have people start to
• 17:26
  Speaker 4: understand more about the asset bitcoin, but you then have
• 17:29
  Speaker 4: to start to understand how to use it. And I
• 17:32
  Speaker 4: think all of the coverage recently is helping to get
• 17:35
  Speaker 4: more people to be curious and be interested in understanding
• 17:38
  Speaker 4: more about bitcoin. And now they'll start to buy it,
• 17:41
  Speaker 4: they'll start to leverage it, they'll start to use it
• 17:43
  Speaker 4: in different ways, and then that will encourage them to
• 17:47
  Speaker 4: grow their own stack.
• 17:49
  Speaker 1: Have you seen strategies that take out loans on bitcoin
• 17:54
  Speaker 1: or ethereum they look for the market to move up,
• 17:58
  Speaker 1: then they're bringing that loan to value ratio down because
• 18:02
  Speaker 1: they're making you know, maybe interest payments or maybe the
• 18:05
  Speaker 1: going at principle. What have been some of the bigger,
• 18:09
  Speaker 1: bigger strategy concepts that you've seen where retailer will use
• 18:13
  Speaker 1: retail in general right now, that helped them kind of
• 18:17
  Speaker 1: manage that risk as whether the markets go up or
• 18:21
  Speaker 1: down over the cycles of three four years. How have
• 18:25
  Speaker 1: you seen their approach on loans that you guys are
• 18:28
  Speaker 1: giving out.
• 18:29
  Speaker 2: So a couple of different things, I would say there.
• 18:31
  Speaker 4: I mean, we definitely have seen people and in fact,
• 18:33
  Speaker 4: we've have a customer that bought a Tesla cybertruck by
• 18:39
  Speaker 4: sot of being able to leverage his bitcoin enough where
• 18:42
  Speaker 4: you then went out and purchased a truck and branded
• 18:44
  Speaker 4: it all bitcoin.
• 18:47
  Speaker 3: In.
• 18:47
  Speaker 4: Some of the strategies that are employed in those situations
• 18:50
  Speaker 4: is I'll often start out with a low LTV, wait
• 18:54
  Speaker 4: for a dip and then borrow against it and then
• 18:56
  Speaker 4: buy at the dip and then sort of let it
• 18:58
  Speaker 4: appreciate and then look to do the same thing and
• 19:01
  Speaker 4: so look at different cycles and different periods of the
• 19:04
  Speaker 4: market where they can take advantage of the additional headroom
• 19:10
  Speaker 4: that they have with their loan, borrow against it and
• 19:13
  Speaker 4: buy more assets and put it back into their customer wallet.
• 19:17
  Speaker 4: I mean, additionally, we know that people keep dry powder
• 19:20
  Speaker 4: on the side, they have sort of stable coins in
• 19:22
  Speaker 4: custody wallets as well, and they'll convert the stable coin
• 19:26
  Speaker 4: or the USD into bitcoin when they see drops in
• 19:29
  Speaker 4: the market.
• 19:31
  Speaker 1: Well, okay, so you guys offer a service called salt Shield.
• 19:35
  Speaker 1: I'm looking at it right here on your website. And
• 19:38
  Speaker 1: this is something that in my understanding when I talk
• 19:42
  Speaker 1: about this to people, everybody's worried about getting liquidated. You know,
• 19:46
  Speaker 1: when a market drops or you see a flash crash,
• 19:49
  Speaker 1: if the idea is to stay low on the LTV
• 19:51
  Speaker 1: and you're going to be fine for most part. But
• 19:54
  Speaker 1: when you look at salt shield, how does this work
• 19:57
  Speaker 1: on a loan that somebody, let's say somebody is at
• 19:59
  Speaker 1: a seven percent LTV A little bit more aggressive is
• 20:02
  Speaker 1: that when they would use something like salt.
• 20:04
  Speaker 4: Shield, they could I mean, the salt Shield pricing varies
• 20:09
  Speaker 4: based on the LTV of the loan. So the lower
• 20:11
  Speaker 4: the LTV of the loan, the lower the price it
• 20:14
  Speaker 4: is to enroll in the salt Shield program to protect
• 20:16
  Speaker 4: from liquidation. I do want to mention the other thing
• 20:19
  Speaker 4: that salt does. In particular, we had created an offering
• 20:25
  Speaker 4: a feature of the loan of all loans called stabilization,
• 20:28
  Speaker 4: so that sort of when you reach ninety point nine
• 20:31
  Speaker 4: to one percent LTV your assets, if you'll enroll into
• 20:35
  Speaker 4: the feature, get converted into the stable coin, so it's
• 20:39
  Speaker 4: not a liquidation, it's still your assets. And then if
• 20:42
  Speaker 4: the price continues to drop, you could move it back
• 20:44
  Speaker 4: into bitcoin.
• 20:46
  Speaker 2: But it basically allows that.
• 20:49
  Speaker 1: What's that does that create a tax event?
• 20:54
  Speaker 4: We advise people to talk to their own accountant and
• 20:56
  Speaker 4: regarding that the assets are still being managed by salt
• 21:00
  Speaker 4: as part of that process, and we've seen opinions go
• 21:03
  Speaker 4: both directions.
• 21:04
  Speaker 1: Interesting, Okay, all right, all right, So when I'm eligible,
• 21:08
  Speaker 1: I pay the fee for salt Shield. What does that
• 21:12
  Speaker 1: do in terms of protecting me against a liquidation? Do
• 21:16
  Speaker 1: I get additional time? Is it something that I'm adjusting
• 21:20
  Speaker 1: down off of the loan balance? What is the opportunity there?
• 21:24
  Speaker 4: So, if you've enrolled in salt Shield for the until
• 21:28
  Speaker 4: the maturity data off your loan, you're fully protected from
• 21:31
  Speaker 4: any liquidation. Okay, so the price could drop, you know,
• 21:35
  Speaker 4: the price could drop ninety percent and you won't get liquidated.
• 21:38
  Speaker 4: So when your loan, when your loan comes to term,
• 21:42
  Speaker 4: then you have to settle your loan and if you
• 21:46
  Speaker 4: want to renew it or extend it out, then you
• 21:48
  Speaker 4: have to bring it back into into good terms but
• 21:52
  Speaker 4: until the maturity data of your loan, you are not
• 21:55
  Speaker 4: at risk for liquidation.
• 21:57
  Speaker 1: All right, So that's a handy thing for those of
• 21:59
  Speaker 1: you who are out there kind of thinking about that.
• 22:03
  Speaker 1: One last thing I wanted to hit on is the
• 22:05
  Speaker 1: number of assets and specifically obviously we see bitcoin ethereum
• 22:08
  Speaker 1: in there as kind of the leader. I know, there
• 22:11
  Speaker 1: are some others that you guys, why would someone take
• 22:14
  Speaker 1: a loan against, say tether or USDC is what would
• 22:17
  Speaker 1: be the reason for that? That's a stable coin.
• 22:20
  Speaker 4: So the biggest use of stable coins that we see
• 22:23
  Speaker 4: is to take out volatility a bitcoin. So we see
• 22:26
  Speaker 4: people putting stable coin into their custody portfolio to reduce
• 22:31
  Speaker 4: the risk the volatility of the value of their overall
• 22:36
  Speaker 4: collection of assets.
• 22:38
  Speaker 2: Gotcha the other.
• 22:39
  Speaker 4: Thing, you know, So that's that's it's used as a
• 22:42
  Speaker 4: tool to take out some of that risk.
• 22:44
  Speaker 1: What about adding more assets into the portfolio? Are you
• 22:47
  Speaker 1: guys looking at bringing more assets on?
• 22:51
  Speaker 2: We are.
• 22:51
  Speaker 4: We continually evaluate whether we what assets we can bring on.
• 22:55
  Speaker 4: Really we're looking at their the overall market cap size
• 22:58
  Speaker 4: and the liquidity of the assets.
• 23:00
  Speaker 1: All right, Well, listen, I think the key here right now,
• 23:04
  Speaker 1: if you were if you were trying to coach somebody
• 23:07
  Speaker 1: that is a high net worth individual or somebody just
• 23:09
  Speaker 1: brand new to bitcoin lending, where would you have them
• 23:13
  Speaker 1: go in terms of LTV. I'm assuming you'd go with
• 23:16
  Speaker 1: the low end on the thirty percent loan and just
• 23:19
  Speaker 1: be safe, get out there, try it out, and then
• 23:23
  Speaker 1: start utilizing it to your benefit.
• 23:26
  Speaker 4: I mean, to be honest, I probably would recommend people
• 23:29
  Speaker 4: come in around sort of a fifty percent LTV because
• 23:32
  Speaker 4: I think active participation in a small loan is important,
• 23:36
  Speaker 4: you know, you know, we want people to learn how
• 23:39
  Speaker 4: to understand the margin calls, to understand how to add
• 23:42
  Speaker 4: more collateral so that if you did need to take
• 23:45
  Speaker 4: out a higher LTV loan, you'd understand how to manage
• 23:48
  Speaker 4: it responsibly and feel comfortable doing that. For the people
• 23:53
  Speaker 4: that are taking out the lower LTV, they have a
• 23:56
  Speaker 4: different comfort level. I think a lot of a lot
• 23:58
  Speaker 4: of people are trying and to just almost set it
• 24:01
  Speaker 4: and forget it, yeah, because they're retiring and.
• 24:04
  Speaker 2: They don't want to worry about it.
• 24:05
  Speaker 4: But I think it's it's worth everybody learning the skills
• 24:10
  Speaker 4: of how to manage a bitcoin back loan and understanding
• 24:14
  Speaker 4: a technology right sort of ability to leverage sort of
• 24:19
  Speaker 4: margin calls and borrowing against an asset that many people
• 24:23
  Speaker 4: have never been exposed to. So really encourage people to
• 24:25
  Speaker 4: try it out and use it before you, you know,
• 24:29
  Speaker 4: really try to take a strategy one one one direction
• 24:32
  Speaker 4: or the other.
• 24:33
  Speaker 1: Yeah, this is the way that wealthy people do it, guys.
• 24:36
  Speaker 1: So you guys, of course go over and visit Assault
• 24:38
  Speaker 1: Lending dot com. Use our link down below. We do
• 24:41
  Speaker 1: have a custom link for you guys, so you'll land
• 24:43
  Speaker 1: on the PBN page over there, get started. There's some
• 24:47
  Speaker 1: special offers over there, and you know, at least get
• 24:50
  Speaker 1: into the game because I think this is one of
• 24:51
  Speaker 1: those things long term that really starts to set portfolios apart. Hunter,
• 24:56
  Speaker 1: thank you so much for coming in today. I appreciate it.
• 24:59
  Speaker 2: It's been a pleasure.
• 25:00
  Speaker 4: And Paul just also to note we have pulled together
• 25:02
  Speaker 4: a playbook to help people understand how to borrow against
• 25:05
  Speaker 4: their bitcoin that is available at the salt Lending dot
• 25:10
  Speaker 4: com forard slash PBN rfect.
• 25:12
  Speaker 1: Okay, we'll definitely leave that in the description down below,
• 25:16
  Speaker 1: so you guys use that.
• 25:18
  Speaker 2: Is it?
• 25:18
  Speaker 1: What is like a pdf that they download.
• 25:20
  Speaker 4: For freef together a playbook that walks them through the
• 25:23
  Speaker 4: different risk profiles the LTV and has some interesting use
• 25:27
  Speaker 4: cases that they can start to think about how they
• 25:29
  Speaker 4: can take advantage of their assets.
• 25:31
  Speaker 2: I like it.
• 25:32
  Speaker 1: I like it all right man, Thank you so much,
• 25:34
  Speaker 1: hunder take care.
• 25:35
  Speaker 2: Oh it's been a pleasure, Thanks Paul.
• 25:36
  Speaker 1: All Right, you guys, if you're not in on the
• 25:38
  Speaker 1: Diamond Circle, you guys can get in our own private
• 25:41
  Speaker 1: group out there, and the way you do that will
• 25:43
  Speaker 1: also leave a link down below. All you have to
• 25:44
  Speaker 1: do is click that you can join for free and
• 25:47
  Speaker 1: of course catch me out there on X at Paul Baron.
• 25:49
  Speaker 1: We'll catch next time right here on The Paul Baron Show.