With Strike’s and nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle recent BTC loans announcement, I’ve been reading a lot of the back and forth on the subject. Having over 10 yrs of fiat lending experience, I have some reflections.

TL;DR

1) If you use the BTC loans to consume, you will fail and will never get your Bitcoin back. Might as well just sell some to live your life

2) If you use the BTC loans to produce, you will have access to amounts of capital that have the potential to truly make the world a better place. If you provide value to the world, you’ll take out the loan and never lose your BTC (you might even have more than if you hadn’t taken the loan)

Bitcoin is just a financial tool. It’s the best one we’ve ever had, but it’s only a tool. I like nostr:npub1dtgg8yk3h23ldlm6jsy79tz723p4sun9mz62tqwxqe7c363szkzqm8up6m's take on topic. If you have your values misaligned and you only want to be a degen consumer in this world, Bitcoin will not change you. It will actually help you do all of that to a much greater degree. You will still be a degen, just with a Lambo and a yacht (maybe even a Lambo yacht, I heard those exist). The beautiful thing about this scenario is that it allows the spread of Bitcoin to those who will possibly value it more and have values and virtues to help guide their decisions. In turn, maybe they will use the Bitcoin to create a better life for themselves and their families.

BTC loans will just accelerate the degeneracy if one uses them for consumption. It’s like leveraged trading… if you go the wrong way, you just get rekt faster and more violently. That’s exactly how BTC loans will play out for those who decide to consume.

On the flip side, BTC loans will be the greatest tool to free capital into value producing and world building humanity has ever seen. We will live through some unprecedented growth. In every way possible our lives will be better, our children’s and their children’s lives will be better. BTC Loans will accelerate growth and allow builders, creators and entrepreneurs to build and create faster than with just native BTC. This will in turn actually increase BTC adoption and the cycle will continue. Some entrepreneurs will succeed and some will fail. No matter what, it will make the system stronger and all of our lives better.

If you have BTC at this point, no matter how much or how little, put yourself in the shoes of nostr:npub1qny3tkh0acurzla8x3zy4nhrjz5zd8l9sy9jys09umwng00manysew95gx and nostr:npub1rtlqca8r6auyaw5n5h3l5422dm4sry5dzfee4696fqe8s6qgudks7djtfs. What will you do with all of that wealth 10 years from now? What will you build? What will you create that will make your family and community better. We are all just them from10 years ago.