Yes that’s how things work. You can always stay humble and stack sats. No one is forcing a loan on to you. But if I was sitting on 200 bitcoin and needed a new roof I might find the prospect of an over collateralized loan to be a sound idea so that I don’t have to sell any of my Bitcoin prior to Bitcoin hyperization. I’d rather be in a situation where I’m paying off my appreciating Bitcoin with evaporating fiat than selling my stack. Everyone’s situation is different.

Or take out of your home equity to cover your roof. It may even be tax deductible interest that way. If so you have the same balloon overshadowing your debt making it always smaller. Bonus no stack risk and possible tax break. 200 Bitcoin is still $20 Million. With that kind of stack you are financially way ahead of most of nostr. I imagine most of us would retire off that and never work again loan or no loans. At the very least you could easily not know what happens to your socks after you take them off like a certain nostr influencer.