Dan on Nostr: Don't borrow against your Bitcoin. As a general rule, I always gave the advice not to ...

Don't borrow against your Bitcoin. As a general rule, I always gave the advice not to borrow money. Bitcoin is no exception to that rule. Unless your a very sophisticated financial operator and have one hell of a trustworthy lender, it's not optimal..Look carefully at my last sentence and dwell on the "trustworthy lender" part. Was it ever the case before that people had to really vet and place trust in a lender ? No. If you didn't pay, they could take your collateral. With Bitcoin, there is the possibility they can take your bitcoin regardless. So unless a very sophisticated and well understood 'smart contract" is employed, having another entity such as a lender take custody is risky. One must understand the risk well. A core part of being a "Bitcoiner" "maxi", is leaving the debt based society. To me it's almost a spiritual "faux paux" to place Bitcoin into a debt burden risk. I believe one should read and understand debt in the viewpoint of the Koran and the Bible before they consider taking out a loan against their Bitcoin. Both those literal masterpieces nail down the concept of debt as it should be.