📉 Want to bet against the USD with $BTC?
A strategy that resonates in LatAm.
Ledn co-founder Mauricio di Bartolomeo recently shared an interesting perspective: his most successful investment before Bitcoin was to "short" the Venezuelan bolívar by acquiring dollars. Now, he suggests that a similar strategy could be to take on debt in dollars using $BTC as collateral, thus maintaining what he considers the "strongest asset" (Bitcoin) and taking a debtor position in a currency that, from his point of view, could be weaker in the long run against $BTC. "This is not a minor detail", especially for those of us who have closely observed the dynamics of local currencies against the dollar.
This proposal arises in a context where the crypto lending market reached a valuation of $30.2 billion for the fourth quarter of 2024, according to Galaxy Research. In Latin American economies, with a special emphasis on countries like Venezuela where the dollar has historically been a refuge against inflation, the idea that $BTC could play a similar role against the dollar itself "could make more than one think".
However, is this a real signal of a paradigm shift or an appreciation that carries its own risks given the inherent volatility of crypto assets? "Pay close attention to this movement", as limited access to sophisticated financial platforms and the need to fully understand the risks are crucial.
DYOR (Do Your Own Research) / NFA (Not Financial Advice)
How do you see this strategy from the reality of your country? ✍️