You are late for this. This is so 2021 what you are saying.
The one who popularized this last year was Michael Saylor, to the point of recommending to people that if you have a paid off house, take a mortgage and buy Bitcoin with the money they give you. Soon other Youtubers jumped on the bandwagon, like Max Kaiser.
I’m not saying use your house as collateral to buy more Bitcoin. I’m saying use your Bitcoin as collateral to obtain more property (specifically investments that will earn you more money).
If you acquire a significant amount of Bitcoin it is much safer to sell or spend small parts than to borrow against it, even if you have to pay capital gains tax. Better to pay tax than to lose your Bitcoin.
[/quote]
If you sell your Bitcoin and have to pay taxes, then you’ve lost your Bitcoin to whoever bought it. So long as you live within your means (which is what a Bitcoin based economy teaches us), wouldn’t it make more sense to keep your Bitcoin and borrow the money?
Those who sold $1,000,000 worth of Bitcoin for $10 in 2011 have lost about 25% of that value. If they borrowed smaller amounts as they needed it (with the means of paying off the loan, and the ability to sell some Bitcoin if times got tough), they would have over $2 billion in Bitcoin.