If I invest in Bitcoin, I will hold it for a long time, I can never hold Bitcoin temporarily at my own will. Because Bitcoin is only compatible with long-term investment, in this you should use as much money as you can invest and be calm at the moment. You should not be aggressive in Bitcoin investment, otherwise your Bitcoin investment may be more likely to be in danger.


Why should I decide to sell my Bitcoin investment? Because I have formed an emergency fund along with my Bitcoin investment. If I need to, I can use the emergency fund to deal with external threats. Those who do not use emergency funds to sustain their Bitcoin investment for a long time are the ones who face danger in the middle of their Bitcoin investment and are forced to sell. Therefore, you must use an emergency fund to sustain your Bitcoin investment for a long time.

Would you personally borrow against BTC you plan to hold long term, or would you rather just sell a small portion?

I'd just sell a small portion of it rather than to borrow against it. The interest that I have to pay is just the same as buying it back after selling a small portion. While that makes me free from the obligation, I have no pressure against the lenders and there's no certain time table of when I might take back those small portions that I was able to sell. And that's why if there will be the time that I need, I'll choose to sell.

I'm not interested in lending BTC, but I do like the idea of receiving interest on deposits so if exchanges begin profiting from these sorts of services enough to offer interest, I'm all for them.

I do think using BTC to back a fiat loan is a decent idea for someone with bad credit and the rates are good enough.  The up front fees are a dealbreaker for me personally though.  If they can get that reduced to be competitive then I could see that becoming a legitimate way to finance a home if you have a large stack of BTC you don't want to part with.  This is even more attractive if you can get interest on your collateral BTC.

To me and few other bitcoin enthusiasts, selling the bitcoin we have held for many years is like selling a golden goose for a quick meal, and who earth would want to do that?  If I have an emergency and my emergency fund couldn’t solve the problem I will go borrow money from elsewhere and solve my problems.  Provided a debtor is still breathing he or she will pay off their debts, but selling my bitcoin is a no no because I have to buy back at a higher price which may not sit well with me.

One thing I’ve been wondering about lately:

If you’re holding BTC for the long term but suddenly need liquidity, selling it feels like you are about to lose your position and might never get it back at that price before you buy back in.

Borrowing against it makes more sense in theory, you get to keep the BTC, access liquidity, repay the loan, get your BTC back.

But the tricky part is doing this without introducing unnecessary custodians, bridges or wrapped BTC.

If native BTC can eventually be used as collateral while staying on Bitcoin, that could open up a pretty interesting lending market.

Would you personally borrow against BTC you plan to hold long term, or would you rather just sell a small portion?

This is even more attractive if you can get interest on your collateral BTC.