Day 1185
You almost never see people post fiat to borrow Bitcoin. But you do see people post Bitcoin to borrow fiat. That’s one of the most important clues in modern finance. People post what they trust and borrow what they’re willing to lose. Nobody pledges melting ice to borrow gold…but they will pledge gold to borrow ice. Fiat is abundant. Bitcoin is scarce. Fiat is easy to spend. Bitcoin is hard to part with. People post BTC because they want to hold it, not sell it. They want the upside without triggering tax or missing out on the future. But most people still operate in a world priced in fiat. So they borrow the melting money, using digital gold as the key. When you borrow fiat against Bitcoin, you risk liquidation if BTC drops. But you’re still long Bitcoin. Now flip it. When you post fiat to borrow Bitcoin, you’re borrowing the best-performing, most volatile, and most scarce asset of the century. If Bitcoin pumps, you now owe more. You’re effectively short Bitcoin. Nobody wants to owe the most performant, volatile, scarce asset of the century. Because owing BTC is terrifying. Owning BTC is great. That asymmetry says it all. Even in a world where fiat is still king, behavior is tilting toward Bitcoin. People spend fiat. They save Bitcoin. They pledge BTC to avoid selling it. They never pledge fiat to get BTC because they know they risk loosing tremendously. Bitcoin is not only truly scarce, it’s pristine collateral. It settles globally, instantly, without trust. No weekends. No banker’s permission. No notary. It’s verifiable, transferable, programmable, always on. The first global, apolitical, bearer asset that can be moved and secured without a middleman. So borrowing against Bitcoin is risky, you’re basically pledging gold to rent melting ice. But if it funds freedom, extends runway, or avoids taxation? It can be strategic. You stay long the future while navigating the now. Why aren’t more companies building tools for “fiaters” to borrow Bitcoin? Because no one wants to owe the winning asset. They want to own it. This is how money changes over the long arch of humanity. Not by decree, but through behavior. Fiat is becoming the thing people spend. Bitcoin is becoming the thing people save. Once that distinction hardens, the gameboard will continue to flip in favor of Bitcoiners 🟠
6/19/25
Get Chep’s stories in your inbox
Join Medium for free to get updates from this writer.
Conor Jay Chepenik
