I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.
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. 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.
It may seems like a smart idea by using Bitcoin as a collateral for half of its worth in fiat currency, but to me, i'm actually that type of person who doesn't encourage borrowing, because i know how it feels to borrow, it puts you in the state of unrest, sleepless night and makes you uncomfortable untill finally paid off. And one thing to always consider about borrowing is the interest rate, is it high or is it low and can i afford to pay such rate or e.t.c. So for me, i rather prefer to be patient, save consistently and when i have enough fund, embark on that project i have in mind, than borrowing, just for the peace of mind.