Post
Topic
Board Speculation
Merits 2 from 2 users
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Biodom
on 16/01/2025, 23:02:29 UTC
⭐ Merited by vapourminer (1) ,Richy_T (1)
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.