How does giving a bank the keys to your bitcoin starve the state of anything?

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If you borrow fiat to live on…

There is *no income to tax*

This is how Rich People Have Fun Staying Rich

Also, the loan products I would use probably do not exist yet and require multisig and of course never giving my private key to all of my corn up, which is not how to do this

They’re coming. There are things being built now to do this in a completely decentralized and non-custodial way.

Indeed. I think BTC hodlers will not be treated like the average fiat borrower with little resources

I have seen things that mere mortals cannot comprehend.

Good luck with that