Yes, they serve only right now as away to leverage the Bitcoin trade harder. It's very not much different than going on a trading platforms with 1x leverage except you can spend the money now. Imo it's even worse for market signals.
Discussion
So you are against the idea entirely?
Yes. In the sense that I would never recommended someone to do this. I believe in the "stay humble and stack sats". To me this also means don't participate in such schemes in hope to get even more gains.
With that said, it's not impossible that the people who participate in this scheme end up winning from it. At the end of the day I'm also bullish on Bitcoin and bearish on fiat. I also have this fomo and the temptation to leverage myself.
My biggest problem with those loans is that they aren't being sold to us in an honest manner. First of all, we're told it's a way to keep ownership of the coins but by definition a loan means you lose complete custody and therefore they are not yours anymore. Also we're told they are a revolution in finance when, if we're being honest, it's just a way to go leverage and will eventually disappear as a service.
Every person will interact with the network differently. Iām with you in essence though. At this point of my journey, I am not against borrowing against your own BTC but would caution against it or be overly bullish on it. I agree that this is a service that will not be around forever