What Every Bitcoin Holder Desires
According to BitBO 106 million men and women own Bitcoin and they all desire the same thing – liquidity without losing Bitcoin’s upside potential.
Bitcoin is the world’s most successful asset. For example in 2024 Bitcoin outperformed all major asset classes delivering a staggering +121.5% annual return. Who in their right mind would ever sell it?
But if you don’t sell it how do you realise your gains?
The answer lies in using Bitcoin as collateral for money, rather than money itself. This is how you generate liquidity without touching your BTC.
On the face of it this hardly sounds new. CoinLedger list 10 firms willing to lend against your Bitcoin. Some like Aave and Compound are decentralised with the use of smart contracts. Others like Binance and Wirex require you to trust the company with your BTC.
Decentralised or not every firm on the CoinLedger list comes with significant risks. Let us look at the four biggest:
Margin Call Perhaps the number one risk is a margin call. Every firm will sell your Bitcoin if its price falls below a certain level in order to recoup the value of the loan. With an asset as volatile as Bitcoin this does not make for a sound night’s sleep. Falling Bitcoin prices exacerbate the risk. Sell orders from margin calls dump more Bitcoin on the market compounding the bearish outlook. This triggers more margin calls that in turn send the price even lower and increases the risk of whoever has a Bitcoin-based loan of being stopped out.
Custodianship The margin call also demonstrates that you have relinquished control of your precious asset. Even with a decentralised platform you are no longer the custodian of your Bitcoin. If there is one fundamental principle of Bitcoin it is individual ownership. You lose this by taking out a loan. Your Bitcoin is now in the hands of others, be it a company or automated smart contract.
Interest Then there is the cost of the loan. All of the lenders charge interest. Unless the interest is deducted at the start of the loan, interest adds to risk as a default on your repayments could also trigger your Bitcoin being sold.
Loan Period When talking about risk we cannot forget the term, or length of the loan. When the due date arrives if you do not repay the loan your Bitcoin will again be sold.
These risks to borrowing against Bitcoin are stumbling blocks for those in search of liquidity. Yes, you can unlock some of your Bitcoin gains, but it can cost you the one thing you don’t want – losing your Bitcoin.
What if these risks were removed?
This is the vision of the Goosie coin. Goosie is specifically designed to turn Bitcoin into usable money. It does so by removing every risk just outlined.
No Margin Call When you deposit your Bitcoin into the Goosie smart contract you immediately receive 51% of the value of your Bitcoin in the Goosie coin. This makes your loan seriously over-collateralised. But even if Bitcoin did lose more than 51% of its value, a unique design feature called guarantor value means there is NEVER a margin call.
Sovereignty When you deposit your Bitcoin into the Goosie smart contract ONLY you retain control. There is no third party or piece of code that can access your Bitcoin for any reason. Sovereignty over your property remains intact.
No Interest Goosie charges no interest on the loan. This is possible because there is no counter-party who wants a reward for lending you the money. Instead Goosie are minted at the time of the loan by the smart-contract. When you repay the loan the smart contract burns the Goosie deposited. This ensures there are no Goosie in circulation not backed by BTC.
No Loan Period You can keep your loan for as long as you like. With no end date there is no worry about making the repayment at a giving time and the risk of your Bitcoin being sold if you do not repay.
It’s not hard to see that by giving 106 million Bitcoin holders what they most desire, Goosie coin turns the current status quo on its head. Not only does it eliminate the biggest risks to unlocking liquidity with current lending options, but it questions the enshrined crypto principle of why should anyone give their valuable assets over to others.
A competition is currently underway to bring these benefits to Bitcoin owners as soon a possible. The team that wins receives 0.5% of all Goosie minted in perpetuity. As the Goosie addressable market is the $103 trillion M2 global money supply it is not hard to see how the rewards could stack up. The competition is open to anyone wishing to enter.