Because why would I spend a scarce, appreciating asset like Bitcoin, when I can borrow against it for fake money, and let Bitcoins appreciation ‘pay’ down my loan over time

Same reason why someone wouldn’t sell their home if they need liquidity. Why would I sell my home that’s gaining value, if I can just borrow against it and get some liquidity to purchase what I need

I see where you’re coming from as a bitcoin-only business like yourself. However the world is still fiat. So until everyone accepts bitcoin, borrowing fiat against it for liquidity, is a much smarter move financially than to part ways with it