The 200-WMA Isn't Perfect: While a powerful tool, the 200-WMA is not an infallible support level. Bitcoin has, on rare occasions, dipped below it. A prolonged period below the 200-WMA could disrupt this strategy.
Although it's possible, you also need to consider that the Federal Reserve and the other Central Banks around the globe will NEVER stop expanding the money supply. Zoom out to the maximum a graph of the "value of fiat". Do the same for Bitcoin's chart.
Quote
This is why many people view Bitcoin as a hedge against inflation and a superior store of value. It's not just a speculative bet on a new technology; it's a belief in a fundamentally different and more sound form of money. The argument is that as the value of fiat currency inevitably erodes due to central bank policies, a scarce and mathematically-driven asset like Bitcoin will become increasingly valuable in relative terms. It's a bet on sound money over easy money.
Tax Implications: Cashing out Bitcoin is a taxable event in most jurisdictions. Your sustainable withdrawal rate must account for capital gains taxes.
Tax Implications: Cashing out Bitcoin is a taxable event in most jurisdictions. Your sustainable withdrawal rate must account for capital gains taxes.
That's why I support and encourage that Bitcoin-DeFi should be built and further developed so that if we need fiat to invest/buy something, we could simply use it as collateral to borrow fiat. - The user avoids giving up the ownership of his/her Bitcoin.
The ability to borrow against Bitcoin without selling it is a powerful tool. It allows individuals and businesses to unlock the liquidity of their assets for various purposes, such as:
Making a down payment on a house
Funding a business
Paying off high-interest debt
Investing in other assets (without selling their Bitcoin)
Your point about Bitcoin-DeFi is spot-on. It represents the natural evolution of Bitcoin as a financial asset. It allows users to have the best of both worlds: the long-term value appreciation of their Bitcoin and the immediate utility of a loan to meet their short-term financial needs. It's a critical step in turning Bitcoin from a "frozen" store of value into a productive and dynamic asset within the global financial system