Unfortunately, capital gains taxes are a reality for most of us. At the same I am getting the impression that more and more long term hodlers want to put their bitcoin to work. Some of us already live on a bitcoin standard and we are sitting on some sweet unrealized gains. Borrowing fiat against bitcoin is already quite widespread (and makes sense as it is a good trade even though interest rates are quite high) but as we are progressing along the adoption curve I am seeing more and more investment opportunities where we can directly invest with bitcoin (e.g. a startup with a great idea, a fund, etc.).

Ultimately, that is what the future (hopefully) looks like. We will use bitcoin more and more as a medium of exchange in our daily lives. Purchases must bring us either a lot of pleasure or investments need to outperform the baseline (which is the deflationary appreciation of bitcoin).

Long story short, using our bitcoin would trigger a tax event for many of us hence why borrowing bitcoin against bitcoin can make sense. I am thinking about setting up a trustless peer-to-peer service where fully collateralized bitcoin loans can be offered and taken. Interest rates would likely be much lower than taking out fiat (ultimately the free market decides) and the whole process would be fully trustless and non-custodial. Basically a win-win, the party lending BTC gets a practically risk free yield in exchange for locking their BTC up for a specific amount of time, the borrowing party avoids paying capital gains taxes when they want to use their bitcoin. Non-custodial and no KYC as it should be.

Wanted to feel out the pulse here if there is demand for such a service ;)