This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax.
If you live in a country where bitcoin is openly used to buy everyday stuff then good for you, but then buying stuff will gradually end up attracting taxes too. Now you cant live without paying for your food and water, so whats the point you are trying to make? Good and services tax exist in countries.
Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.
Surely you will gain, but that is a gain on paper, not in reality unless you sell. If your objective is to evade taxation by using bitcoin then you are in the wrong place.
I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.
Bitcoin has its pros and cons just like fiat, in the ideal scenario they are supposed to work complementing each other.
Does anyone else plan on doing this?
I am sure others have had "pipe-dreams" like yours before this and failed after realizing their mistake.