Borrow fiat with your Bitcoin and never sell

[Franctoshi]

I don't see anything wrong with this if you find any money lending bank that will grant you the loan, I think this depends on the duration of the loan, it will be fine if anything above 4 -10+ years for repayment period and during a zero or low interest rate period, but now the interest rate are on the high side for one to borrow.

However,  it could be a wise decision in the end. Michael Saylor sometime did borrow money to buy Bitcoin during the zero interest rate period before the last bull market, and I guess he must have paid off the loan because after that Bitcoin had that moon shot to 69k.

 But where I'm worried is the condition of the loan using Bitcoin as collateral , tell me are you gonna transfer the Bitcoin to them or what?

[isaac_clarke22]

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Well obviously avoid it if you can. Don't invest if you don't have the money to do so. It is that simple. Surely there would be some people trying to justify that it could help your credit score, but who know what crypto will bring to your borrowed money in the next few years.

Is it a gain or nah? Imagine if you bought some Bitcoin back around when it was 64k, but then now it is 19.2k and your loan is almost reaching its repayment date.

[Cookdata]

If you do have enough Bitcoin in your possession this might mean you might not need to borrow because I would believe you have had enough to invest in that amount of Bitcoin. Why would you have to borrow when you know you would still be paying interest on the amount you borrowed or maybe you want to invest that cash in another profit-generating investment plus let us not forget that there is nothing wrong with taking profit from what you have invested over time. You can not HODL your Bitcoin investment forever without taking profit for yourself then why have you invested in the first place?

Life is challenging and very complex my dear friend!
Do you remember some time ago when Elon Musk decided to sell some of their Bitcoins? They claimed they needed some liquidity for future expenditure, I don't know how true this claim is but if at all Tesla actually has a platform they can take borrow that from, the bitcoin they sold would have acted as collateral for them because it is something they can pay back in future without selling their bitcoin but the question is, is there any decentralised protocol that can actually lend Tesla that kind of liquidity they needed? There is none and they were also not ready to take any risk with their bitcoin because most of the decentralized protocols that we have are full of shits that get exploited every time.

If you have your bitcoin as an investment and you need some cash as an emergency for short time and you don't have any means, you can always borrow but you have to borrow less amount in a way that your bitcoin will be overcollateralized so that you don't get liquidated in case of a price crash and margin calls.

[CryptSafe]

Mortgaging your Bitcoin for Fiat is not a bad idea but i hope you fully put modalities in place to remedy any unforeseen future circumstances. Doing this would save you the idea of selling making you hodle for long. Selling your Bitcoin wouldn't be an option with this step as you would definitely have some fiat with you. However, it's not just borrowing with Bitcoin as a collateral what do you intend doing with the loan to get you profit because this should be your thought at first as you know it's a big risk to take. You just have to make a good investment on the loan so as to save you more money getting more Bitcoin as you know  Bitcoin price is volatile. This would have you to hodle your Bitcoin for long pending wen your loan is due for payment by then, you must have made more profit to acquiring more Bitcoin added to your portfolio.

[imamusma]

I don't like something difficult when I actually have an easy choice. I mean why hold bitcoin and give it as collateral for a loan while I can sell it if needed? If bitcoin is meant to be a long term investment, then I need to have a spare fund other than bitcoin that I can use, that's a basic plan before investing. If I really don't want to touch bitcoin when I need money, then I really need to have a reserve fund.

The OP can do it where it's probably best for him, but if it's me then I'm more likely to sell bitcoin as necessary if I no longer have spare funds to work with. Everything is risky due to price volatility, but anything complicated should probably be avoided.

[jostorres]

I don't see anything wrong with this if you find any money lending bank that will grant you the loan, I think this depends on the duration of the loan, it will be fine if anything above 4 -10+ years for repayment period and during a zero or low interest rate period, but now the interest rate are on the high side for one to borrow.

However,  it could be a wise decision in the end. Michael Saylor sometime did borrow money to buy Bitcoin during the zero interest rate period before the last bull market, and I guess he must have paid off the loan because after that Bitcoin had that moon shot to 69k.

 But where I'm worried is the condition of the loan using Bitcoin as collateral , tell me are you gonna transfer the Bitcoin to them or what?

4 to 10 years is too good to be true. On many lending companies that I inquire, their terms are only short. They need the money as soon as possible so that they can accommodate other loaners. The interest rate for them is also high and I think there is no such thing as zero interest rate because how can they earn that way? And what I know is that interest rate depends on the longevity of the loan.

The longer you pay it, the higher the interest you're going to pay but yes we need to transfer our collateral to the lender. This sounds risky but this is only for the protection of the lender. What if the loaner won't pay the money that they borrow?

[Antonas1]

Doesn't every loan have a time limit to repay? What if your scenario doesn't work? Let's imagine this: you borrow cash while you still have Bitcoins. But until the time limit of the loan, Bitcoin price drops drastically and you lose. Isn't that more inflict a financial loss? This is not a smart way to go.

[woez]

Does anyone else plan on doing this?

It is true that cash transfers may be expensive and time consuming, but banks should not charge this fee in the first place because the amount of money the bank charges for a loan depends on how much money people want to save.

Well, continuing from the topic of conversation above, I think Bitcoin has been used by many consumers because it eliminates the need to have a credit card. Instead, linking your bank account information directly to your Bitcoin wallet, this allows us to bypass middlemen and make transactions without involving large financial institutions.

While this is certainly a positive step in the right direction, the cash market benefits borrowers at the expense of borrowers.

[Antonas1]

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Everybody knows how it can pay it loan and it's clear that every loans have it limit the way I'm seeing loan things, a loan itself is something i know that can be repay according to agreement time, taking a load from the someone and buy Bitcoin and that load itself is used to buy Bitcoin and Bitcoin falls unexpected, the loan most be pay back because an agreement

I don't get you. You are replaying my answer as though giving an explanation to me about what if OP scenario doesn't work. But after reading your answer, I think your words are empty. Can you use an easier phrase for me to understand?