Invisible Structures

Structured business and banking arrangements include both public and private aspects and can make the difference between whether or not any project survives in the long-run. No matter how much surplus is generated, the governance model can decide whether relationships breakdown internally or externally. And either can lead to the failure of any endeavor. Either make a plan to succeed, or fail to plan and become less likely to succeed over time.

1 is none, 2 is one. True prophylactic protection requires a statutory 'public facing' trust with a pure contract 'private holding' trust as the ultimate beneficial owner.

Planned arrangements for compartmentalizing risk with layered special purpose business entities and both public and private banking, IF properly planned and managed can provide multi-generational wealth accumulation and protection. Previously the legacy wealthy used whole life insurance 'cash values' to collateralize their private banking arrangements. With Bitcoin, similar private family banking arrangements are possible without having to trust the insurance companies. And can be built on a Bitcoin standard, and/or precious metals,

“What do the beggar on the street corner and the millionaire in the mansion have in common? Neither one 'owns' antything!”

Control, not ownership of title is what matters. This applies not only to the layering of business entities that each 'own' assets in specific risk categories, but also to private family banking arrangements. Signatory authority over the assets, whether they're Fiat bank credits, Bitcoin held 'on-exchange', or precious metals held in an international vault, is what truly matters. Not the NAME in which the account is registered.

Rather than trusting a 3rd party insurance company that provides a Whole Life Ins. policy with a cash value that can be used as collateral, or a Banking institution that provides a mortgage, it is now possible to retain more control over the lending operations and the assets backing up the loan. Just as the legacy wealthy have been paying themselves interest on the loans made within the 'Family', the same tactic can now be applied to private peer to peer lending using bullion kept in private vaults and/or Bitcoin kept in private wallets. Those 'peers' can be each be one of your special purpose business entities, providing management of those entities the control over what loans are made and at what interest rate they are provided.

This not only allows for preventing the legacy banking institutions from having any say in what structures get funded. It provides a means to capture the interest paid 'in-house' to further grow the family bank's capital. Properly managed it becomes possible to use leveraged futures contracts to retain the capital gains of long-term Bitcoin holdings while still 'cashing' out the Bitcoin held in your Bitcoin wallets. Replacing the BTC in your wallets when monthly payments are made as the 'mortgage' for a real estate purchase. And rather that a 200% or 300% deposit, only a 1%-2% margin need be maintained to hold your position in the BTC futures markets. When those BTC are replaced with the monthly mortgage payment, the futures position can be proportionally decreased until the entire liquidated amount have been replaced in your cold wallets.

Self-service financing

Creating and managing these private banking arrangements eliminates the risks of Fiat inflation stealing the purchasing power of your loaned capital as the repaid Fiat has been historically losing 20% per decade. While also paying down the balance of the loan with each payment rather than paying off the interest on the loan first as is done with traditional mortgage arrangements.

These arrangements also avoid the counter-party risk required when operating these systems using the 'cash value' of your insurance policies. Those historical tactics not only require the insurance company to remain solvent over the next few decades they also require the banking institutions issuing the loans to remain in business. Past performance does not guarantee future results and the fundamentals of both of these industries are very weak as both banks and insurance companies are over-extended and under-capitalized. The risk of a 'bail-in' where your funds are used to pay off other creditors ahead of you in line is very real when contracting with these 3rd party financial service providers.

The inflationary risks can be mitigated by maintaining your collateral for the loans in precious metals that have a long proven history of retaining their purchasing power. Knowing that the private vaulting facility actually has your metal in their vaults, as opposed to your Fiat belonging to the Bank or insurance company that issues you a 'credit' when your cash is deposited with them.

And the significant opportunity costs of liquidating a hard asset with a fixed supply and ever-growing demand like Bitcoin, can be avoided by maintaining a 'fractional reserve derivative' position that continues to capture the capital gains that are very likely over the next few decades. The holding cost for maintaining these futures positions are far less than normal mortgage interest rates and likely far less than the capital gains that will occur over the course of the loan as the general populace acquires more education and trust in the Bitcoin protocol.

By financing these homestead land trusts privately many of the regulatory costs and restrictions are avoided along with the inflationary depreciation and trust in 3rd parties. Those with significant Bitcoin gains can liquidate some of their long term holdings to acquire control of real assets now while retaining the potential for ongoing increases in the purchasing power of that Bitcoin.

The full transparency of the public immutable ledger provides open-book banking to the Grantors of those assets. The open, borderless, and permissionless nature of the Bitcoin protocols can allow many that have been locked out of the legacy financial system to allow those without documented identities and residency to use their earned reputational trust to be capitalized on and acquire control of their own life necessities. Not only for shelter, but also for water, food, power, fuel, waste management, and right-livelihood.