I would not go near borrowing Bitcoin. One takes out a loan in Bitcoin in the winter of 2001 - 2012 when Bitcoin was trading around 2 USD and then 2 years later it is worth 1000 USD. I prefer something that depreciates in value such as most fiat currencies when it comes to borrowing.
What if you finance it only in
BTCSure if you take out 1000000
BTC to buy a car in 2010, then you are now forced to return 240 million $
But what if you dont switch currencies, if all your income is in
BTC.
Example:
1)you got a casino which generates a stable & average 0.01
BTC/day, but you need for an ad campaign atleast 1 btc.
2)you take out a loan of 1 btc, and make sure the interest nominal+daily debt rate is < than 0.01
BTC/day
3)you start the ad campaign, which attracts visitors to your casino, even increasing your daily income to lets say 0.05
BTC4)with your increased income you can now repay the debt easily
Usually a daily debt obligation looks like this: interest amount/loan duration + sum amount /loan duration , where the interest amount/loan duration > sum amount /loan duration.
If you can pay back with your increased income the sum amount faster, then the interest rate also shrinks, thus you will need to pay less interest back in total the faster you repay it
I`m talking about variable rate loans