Thinking like a banker they’ll realize that the return on the loan yields less Bitcoin than what they lent out if Bitcoin appreciates at a higher % than the rate of interest the payments on the loan generates. It makes issuing the loan undesirable unless it’s at extremely high rates. High interest rates are a natural consequence of having a finite supply money which lays the ground work for a cost of capital determined by free market supply and demand price signals for debt rather than the FOMC. And thinking like a potential future consumer of one these debt products why would I get a bitcoin loan at 17% interest when I could get a HELOC for 1000 bps (or whatever it may be) below that rate? Or even if I didn’t have a home to use as collateral, there’s too many other fiat options to name. I don’t see a world where a Bitcoin collateralized loan ever becomes desirable unless if you’re super rich with a top .1% income but even in that situation you’d still have access to better options. I actually think bitcoin collateralized loans will become far less desirable as Bitcoin continues its path toward monetization, and they won’t naturally gain traction unless if we lived in a world where there was no other way to borrow.