I see a lot of hype around Bitcoin backed loans.

Let me tell you something.

Putting Bitcoin in someone else’s hands to borrow a fraction of the value at ridiculously high rates is almost as stupid as putting your life savings into HuahTuah tokens

Yes, selling Bitcoin is taxable event but it comes with literally ZERO risk. You sell, pay 20% taxes and get the money.

Giving your Bitcoin to secure a loan, to get 30% of the collateral value comes with a LOT of risk.

The value of Bitcoin might drop more than 70% and you might not have or might not be willing to raise your collateral = liquidation or the custodian might just go down or go bust = liquidation.

Prove me wrong. I’ll wait.