
This is How You LOSE Your Bitcoin Stack! | Highlighted Clips
The Bitcoin Way Podcast · The Bitcoin Way
March 30, 20266m 49s
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Show Notes
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<p>In a recent appearance with Bitcoin Katie, Tony shared one of the most consequential ways you can put your Bitcoin at risk: Bitcoin-backed loans. </p>
<p>It sounds appealing at first. Stacks sats, borrow against it, and spend depreciating fiat. But the truth is more insidious. </p>
<p>Bitcoin-backed loans mean you give up control of your keys and are subservient to the whims of the market. A major correction in Bitcoin’s fiat price, such as we’ve seen recently, can mean you get liquidated. And odds are, you won’t ever get the same stack back. </p>
<p>But this is just one of the big risks. Others, such as 6102-style confiscation events, regulatory exposure, data breach risk, loss of cash flow to pay back loans, and even stolen coins are real factors to consider. </p>
<p>The TLDR is simple. For most people, Bitcoin-backed loans are not worth the risk, no matter how enticing they seem on the surface. </p>
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