Replying to Avatar utxo the webmaster 🧑‍💻

i really don't recommend borrowing against your bitcoin and paying interest

just spend/sell coins as needed

yes i understand the numbers but consider the human psychology element of it, and the track record of fiat system which you put your coins in to get these margin loans.

debt is slavery and debt based systems got us into this mess to begin with
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Globe99 2mo ago

While I'd probably never engage in this behavior, I support is wholeheartedly.

Getting a Fiat loan with BTC collateral means that Fiat inflation (money supply) has increased. This promotes BTC's price, which pays off the loan. The more people do this, the more Fiat is degraded and BTC is pumped...

I.e. this is exactly the speculative attack scenario:

https://nakamotoinstitute.org/mempool/speculative-attack/

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Arotags 2mo ago

Never thought of this. Perfect explanation of this mechanism, thanks!