If weren’t for giving up custody, borrowing against BTC in cases where you *could* pay in full makes clear financial sense.
1. If your ability to service the debt were to falter, you’d just pay off the loan.
2. If the interest on the loan is less than the rate of monetization of BTC, you’re going to come out ahead. (That is, you’ll have more Bitcoin remaining.)
It is the giving up of custody that makes it a non-starter for me.
"It is the giving up of custody that makes it a non-starter for me." This is the main problem.
For sure.
It wasn’t clear to me if nostr:nprofile1qqsw9n8heusyq0el9f99tveg7r0rhcu9tznatuekxt764m78ymqu36cpz4mhxue69uhhyetvv9ujuat50phjummwv5hszymhwden5te0wahhgtn4w3ux7tn0dejj7znxpeu was taking issue with leverage, or with debit service.
I think borrowing is smart under the right circumstances:
- could pay it all back at any point
- can afford to service the debt
- the thing you’re *not* selling will appreciate faster than the debt service cost
