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Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
LoyceV
on 22/07/2025, 09:58:56 UTC
⭐ Merited by philipma1957 (3)
Why would you want to get a loan in paper bitcoin, though?
I don't Wink But I can imagine bankers coming up with this scenario for profit.

Quote
Why not take a loan in paper dollars, and use them to buy bitcoin?  This way, you don't have counterparty risk (bank going bankrupt, or practicing fractional reserve with no reserves), while you do borrow the bitcoin.  You're also increasing the supply of dollars, while decreasing the market supply of bitcoin, driving the price up.
I wouldn't invest borrowed money, but I'm risk-averse when it comes to loans.