Selling vs Borrowing

When life calls, many Bitcoin holders wonder if they should sell their Bitcoin to access cash or borrow against it instead. Each scenario has pros and cons, so anyone in this situation should seek financial advice from professionals before making any decisions, but this model should allow you to test some of your own assumptions and metrics to compare the outcomes.

In this Model: Input how much BTC would be sold, input the estimated capital gains % being paid in taxes, input the estimated loan APR %, and input the loan term for which the funds would be borrowed. Then drag the Bitcoin CAGR bar to your desired metric and see the results. If you aren’t sure how Capital Gains Taxes work, more info here and be sure to consult a tax professional before making any decisions.