If you're going to use it as collateral why not just sell it?
The issue with selling my Bitcoin is that I don't want to lose my exposure to the coin and miss out on any increase in value and also I dont want to pay capital gains tax on the gains I made over the past couple years.
That's one risk that you need to think of, if you're going to sell it so that you won't have to ask for loans your problem is solved. The good thing is you can buy again after the expenditure that you have to spend with the profit you got. That's all you have to do though I understand the capital gains tax thing and about the exposure if ever the price of bitcoin booms again, you have no choice but to look for some personal help and ask your friends or relatives that can lend you some help.