I don't have much experience in bitcoin/crypto credit markets. Borrowing against my bitcoin seems like a bad idea to me. Lending people my bitcoin seems like an equally bad idea.

I'm very curious as to who the borrowers are for bitcoin backed loans, and what they use the funds for. Are they just using it speculate even more in crypto markets? Because most large purchases that you'd need to borrow for (house, car, even businesses, etc) have tradfi loans available, usually at a better rates than crypto backed loans.

Are these people without access to traditional capital markets? Are they people who simply don't know how to borrow from traditional capital markets? (some young folks I've met fall into this category... they are actually more familiar with crypto markets than tradfi).

Either way, I'm trying to figure out who the customers in these markets are.