Bitcoin-backed loans don’t strengthen fiat. They let Bitcoiners access liquidity without selling their Bitcoin, reducing selling pressure and keeping Bitcoin held as an asset. The demand for dollars in these loans is temporary, serving as a bridge to maintain Bitcoin exposure. People can take the fiat from these loans and buy Bitcoin if they’d like.
If anything, they increase demand for Bitcoin, not fiat.
Replies (4)
unless you can grow your fiat faster than bitcoin it's still stupid
because of fiat, businesses growing faster than bitcoin is like 2% of all enterprises. over half of them will not make the money back to finish the loan and get the bitcoin back, so it's stupid, sorry, not sorry. i know you are an entrepreneur and what you just said is dishonest.
Agreed. By allowing temporary leverage it can facilitate the purchases of additional investments like other projects and assets without Bitcoin liquidation. The Bitcoin held is helping people and companies build their wealth through tapping part of the equity for growth actions. Solid tool in the toolbox.
Fiat institutions collecting interest by lending dollars to people pledging bitcoin as collateral is not strengthening the fiat system? Common
Two things can be true. This product both reduces sell pressure on bitcoin in the short term and strengthens fiat institutions that get that sweet interest thanks to their ability to magically conjure money out of thin air.
Assuming people will buy bitcoin with the borrowed fiat is that just an assumption. Any way you slice it you end up with people close to the money printer enriching themselves
If you build a successful business with your loan you get to pay down the principle and get your coins back with now an additional cash flow to continue stacking.
You seem to have a mindset of an employee.
