Lava The bitcoin borrowing platform has developed the self. Unlike traditional encryption services that take user assets custody (and sometimes they participate in risky practices such as Rehypothecation), lava works in particular and take advantage of the original Bitcoin smart contracts (DLCS) to enable the most secure borrowing experience. The primary product is the platform LavaAvailable on the mobile phone and desktop, which acts as a safe and borrowing borrowing interface. It uses advanced safety features, such as safe -based safe chips to manage private keys and biometric/bilateral authentication, to ensure that user boxes remain safe. Lava also offers encrypted backup copies to relieve the risk of a box loss from one point of failure.
Lava Loans The product also enables users to borrow dollars for their Bitcoin's possessions, providing liquidity without asking to sell Bitcoin. This is especially attractive for Bitcoin who want to maintain long -term exposure to a potential BTC estimating with a criticism to meet immediate needs. The unique registry contract technology from Lava (DLC) from Lava allows these loans to be submitted on the basis of self -needs, which reduces the risks of the opposite party and rehabilitation.
Stablecoin integration – lava
Lava launched its STABLECOIN shows – Lava Combining Bitcoin with dollar -based spending. Lavausd Recovery 1: 1 for the US dollar via criticism reserves and very liquid tools. The reserve portfolio contains a mixture of short American cabinet bonds, US Treasury Re -purchasing agreements during the night, and all money market boxes with partners such as Blackrock and Fidelity. Lavausd enables users to pay payments anywhere in the world without friction.
Here is the reason for their launch:
- Immediate and globalLavausd stretches over the stability of the US dollar to the base of global users while maintaining the confidence and security of modern encryption. All transactions are immediate and settled 7/24/365, with the support of immediate slopes and currencies all over the world.
- Low cost: As programming digital dollars, transactions are much cheaper and more efficient for processing and thus avoid unnecessary fees and friction in the FIAT banking system.
- RewardsLavausd makes it easy to distribute the return, points and other exclusive benefits for users.
- protection: Lava can provide detailed reports for larger institutions that testify to support volcanic lava on demand, while “it was extremely difficult to communicate with support teams for the large Stablecoin Exporters.” LAVA Stablecoin reserves maintain separated accounts and bankruptcy with organized financial institutions. This ensures that the reserves are fully protected and keep them separate from operating funds in volcanic lava, export or guardian. Even in the case of unlikely bankruptcy, these reserves remain available and are protected to ensure full support for all issued Stablecoins.
- Blossoms of cross seriesThe Stablecoins in other networks (not only Bitcoin), using atomic borrowers to ensure Stablecoins while lenders secure Bitcoin guarantee. Over time, Lava plans to expand support for multiple networks, which may include Bitcoin -based stablecoin alternatives as they ripen.
The team attracted great investments. Since Inception, LAVA has raised more than $ 30 million of investors including Khosla Ventures, Founders Fund and Susquehanna International Group with the participation of angel of people and institutions including Bijan Tehrani, the investment authority in Qatar, Google, and Franklin Templeton among others. Full Disclosure: UTXO participated in the LAVA seed tour.
The issue of BTC spending in exchange for spending on dollars
Last week, this Caitlin Long It is amplified by our favorite Bitcoiner in Congress Sinatia Lomes It received a major reaction from some bitcoin columns, which offended the idea of perpetuating the FIAT system instead of directly with Bitcoin, as it was meant by Satoshi.
(S/O to our Bitcoin magazine Og Mike Germano and Pubkey Extraordinaire Thomas Paccia in order to get the gentle beer – better wine!)
BTC spending is often welcomed directly with merchants or individuals as a step towards the hyperbone – virtual scenario where BTC becomes the dominant global currency. This approach enhances the effect of the Bitcoin network, encourages adoption, corresponds to its philosophy from counterpart to counterpart, bypassing mediators like banks. However, this strategy faces great obstacles. First, the BTC price estimation potential remains large. Historical data shows that the value of BTC increased from small levels in 2009 to more than $ 100,000 by early 2025, driven by limited supplies (21 million coins) and increasing institutional interests (for example, the treasury strategy in Microstrategy). BTC's spending is now risking the transfer of future gains, especially as Halvings and market dynamics continue to restrict the supply against high demand.
Second, tax conditions in many judicial states, including the United States, are imposed on BTC's tunnels. In the United States, the BTC is treated as property, which means that every transaction leads to a taxable event. The sale or spending of BTC in profit shows the capital profit tax-to 37 % to achieve short-term gains or 20 % for long-term property-on the difference between the purchase price and the value of the sale. This complexity inhibits direct spending, as users must track cost, report, and move to administrative general expenditures, and often exceeds the comfort of BTC payments. For example, the purchase of $ 1,000 from BTC will lead to $ 10,000 to a $ 2800 tax commitment (assuming an effective rate of 28 %), which makes the dollar -based spending via Stablecoins a more efficient tax.
Why the BTC contract exceeds spending now
Given that the upward BTC Path Spending may now undermine the long -term wealth. Analysts suggest that BTC reaches $ 200,000 or more by 2030 if current trends persist, driven in inflation and weak FIAT system. BTC spending at current prices locks in part of its capabilities, especially when alternatives such as Lava lending model provide liquidity without confiscation. Moreover, the tax burden inflames this example, as repeated transactions eroded net returns. This is in line with the philosophy of “Hodl”, as the BTC retention increases the grade while using borrowed dollars or stablecoins immediate needs.
Reducing Strategy: Purchase Mechanism
To balance the desire to spend with BTC retaining, the Buy-Back strategy offers a practical solution. After borrowing dollars against BTC via the Lava platform, users can spend these funds with the commitment to the re -purchase of BTC later when market or personal financial conditions allow. This approach promotes fixed lending lending (at 5 % interest cost) to reach liquidity without selling, and maintaining the original BTC cache. The time of the purchase can be used to take advantage of the market drops or post -tax liquidity, and perhaps at lower prices, which enhances the total property. For example, the borrowing of $ 10,000 for 0.1 BTC ($ 100,000) allows spending, with a purchase of 0.09 BTC at $ 90,000 at a later time, and made a gain if BTC is more estimated. This strategy reduces tax exposure by postponing sales and harmonization with long -term appreciation goals.
Since Hyperbitcoinization waves on the horizon, the tension between the savings in bitcoin and the spending in dollars reflects a pivotal moment for the development of BTC. BTC contract increases to the maximum extent of its scarcity-based capabilities-which are clarified through limited offer and increased adoption-while tax complications and fluctuations inhibit direct spending. Stablecoins and lending models provide a practical solution, while maintaining a long bitcoin value while meeting immediate needs. Until BTC FIAT completely goes beyond, this duplication-which flying the revolutionary origin while tending to traditional currency-may determine the path to a future dominated by Bitcoin, and this future is built by Bitcoin companies!Guillaume articles in particular may discuss topics or companies that are part of his company's investment portfolio (Robo administration). The views expressed are only his own and do not represent the opinions of the employer or his subsidiaries. He does not receive any financial compensation for this. Readers should not consider this content as a financial advice or support for any specific company or investment. Always do your research before making financial decisions.
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