People getting rekt with loans will always be a thing. In comparison to what corporations are accumulating it’s peanuts tho.
Rich people will margin against IBIT or MSTR. The group of people borrowing against spot bitcoin will be much smaller imo, especially with income products like MSTY and IMST and fixed income products like STRF/STRK
The Bitcoin backed loans are going to get really popular, especially when price grinds up with no massive sell offs. Most of the current products suck but they will get more attractive.
Margin against IBIT & MSTR is the same risk but on a different instrument.
This isn't a new risk, leverage gets shaken out each epoch. People will downplay the risk after 4 years of clear sailing.
