Replying to Avatar Leathermint

It is the year 2150. The world is fully hyperbitcoinized. A man own 2 bitcoins and he want to buy a house for 1 bitcoin. He is very smart so he decides to take a loan on his Bitcoin rather than spend them for the house. That way he can have the illusion of still owning 2 bitcoins.

I am not very intelligent. Not like this man. So please explain to me the process here. How would all this go down?
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Dylan 2mo ago 💬 1

I would assume the same way it goes down today with fiat. You take the Bitcoin, buy the home, and slowly pay it back with interest. The only difference is the bank is lending the Bitcoin they actually have in custody, non of this fractional shite

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Leathermint 2mo ago

That make sense if the person doesn't give a bigger Bitcoin collateral than the loan itself. I think there will be such kind of loans in the future.

In my thought experiment the person use his 2 Bitcoin as collateral to get 1 Bitcoin and buy the house. In this situation I wonder why the person would decide to pay interest instead of simply spending the coins.