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Even if you're not short of money and have never taken out a loan, discussing loans is still part of financial management, which is why I need to address this topic.
Bitcoin loans and traditional loans have different characteristics. Traditional loans often involve banks and non-bank financial institutions, which often lead to negative credit scores, while Bitcoin loans don't require a credit score. Suppose I take out a Bitcoin loan worth 1 BTC at the current price of $87,000, with an average monthly interest rate of around 0.04% plus any administrative fees. Uniquely, Bitcoin loans must also be repaid in Bitcoin. So, if the BTC price drops to $70k next month, I will profit from the difference between the loan and the loan.
Bitcoin loans and traditional loans have different characteristics. Traditional loans often involve banks and non-bank financial institutions, which often lead to negative credit scores, while Bitcoin loans don't require a credit score. Suppose I take out a Bitcoin loan worth 1 BTC at the current price of $87,000, with an average monthly interest rate of around 0.04% plus any administrative fees. Uniquely, Bitcoin loans must also be repaid in Bitcoin. So, if the BTC price drops to $70k next month, I will profit from the difference between the loan and the loan.