If it was a DeFi protocol that's no kyc, and keeps the funds in crypto, like a stablecoin. And the person SPENDS THE FUNDS IN SOME FORM OF CRYPTO. Then I'd have no issue with it. The primary issue is sucking people back to fiat banking.

Just sell the Bitcoin to pay for things you want. Don't take on debt for household necessities, that is some late stage capitalism shot and the most fiat BS imaginable.

Fantastic. So don't use it. Other may want use it. Who gives a shit? I don't work for Strike, so I don't care what people do, and I likely would never use it. But there are a bunch of use cases people would want this individually and want short term loans. One of them is cap gains avoidance, particularly short term. By loaning against, you don't have cap gains. The short term cap gains can be as high as 34%. So a 12% apr could be well worth the cost vs paying cap gains. If Bitcoin is to become actual money, this will become more and more common, just as are helocs, mortgages, gold loans, loans against stocks, and so on. People better get used to it. It's only going to become more financialized