Quote from: Biodom on January 16, 2025, 11:02:29 PM

Whoever is thinking about that Coinbase loan:
you would pay %% interest on your loans and then you would STILL pay cap gains, since you are converting your btc to cbBTC.
See here:

https://www.benzinga.com/markets/cryptocurrency/25/01/43028215/coinbase-launches-bitcoin-backed-loans-for-us-users

Here is THE key:

Quote

When a user borrows USDC against their Bitcoin, the collateral is automatically converted to Coinbase Wrapped Bitcoin (cbBTC) on a 1:1 basis and transferred to the Morpho protocol.

converted=sold.
Basically, you are selling btc for cbBTC before getting a loan.

Quote from: Richy_T on January 16, 2025, 10:23:29 PM

A loan vs selling can have capital gains benefits, I believe.

Most likely, not, see above.

Definitely this is not a loan if so, because one would have to sell his BTC to cbBTC before getting loan, automatically we can call it swap or convert process and yet would have to pay some %, without collateral no loan is permitted and conversion of BTC to cbBTC serves as collateral. lols.. just a kind of game playing.