In that scenario, you aren't really losing anything though. You got the cash, at a higher rate. No different than selling it at a higher amount. if you blew it on coke and strippers, that's an issue.

But if you loan instead of sell it, you wouldn't have the Bitcoin anyways, plus you would have had the taxes on the sale.

So for 12% interest, you save in many cases 30% in taxes.

We need to stop acting like if someone needs cash now that there is another option between a loan and selling the Bitcoin.