The difference is that the home is not liquid. It's not money. This is why you don't spend it and instead offer it as collateral. If I already have money in pocket, there is no reason to use it to get a loan of money.
But you say you don't want to spend it because it appreciate in value. And THIS is why this financial product actually exist for. It's a way to short fiat like I said before. The only reason to use good money to borrow bad money is to leverage the NGU of the good money.
Okay so you get it. Then what’s your issue with it?
It's marketed as a revolution in finance when it is actually just an other tool to go leverage. I don't believe it helps restoring good market signals because this tool is not Bitcoin but rather a symptom of fiat.
My OP was saying this: "This is not a revolution in finance it's just a way to short fiat".
What I mean is that it's not much different than trading. You take such loan because you bet on NGU of Bitcoin.
The reason someone takes a real loan is because he bet on himself.
I consider the first one to be a form of shitcoining.
