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.
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.
Does anyone else plan on doing this?
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?