Love the idea of debt against Bitcoin
But I am not sure how well it works in practice
The short-term volatility, from a dollar perspective, is hard
I would worry about being margin called when not looking
Discussion
It works ok, but you need to have balls of steel, especially if you take you a relatively large loan.
I never had sleepless nights when Bitcoin dropped in price.
The only time that happened was when I had a Bitcoin-backed loan from Nexo.
I felt so relieved once I paid it off and took my BTC back into self-custody.
In the future, we might see much better Bitcoin-backed loan products.
Until then, they're probably not worth it.
Check nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z or cjkonstantinos on YT. Tl:dr overcollateralize 4:1 at least.
Yeah and that’s where I struggle. You have to trust a lot of Bitcoin in someone’s custody