RE: The Ideal Use Case For Bitcoin?
It is the other way around. When you need money, the reasonable thing is to sell your BTC (and buy back with future money intended to repay the loan). It is not reasonable to sell your house (it is neither liquid nor divisable) so it makes sense to take a loan against it. But BTC???
I know your precious Bitcoin is going to 4x in the meantime so you have to keep it but come on, you are not taking the loan to finance your needs - you are financing your market speculation. Essentially, you are opening the Hungary-type of scenario where all the smart people living on HUF avoided the sky-high interest rates (the currency was weak) by taking EUR denominated loans (guess what, they defaulted when HUF tanked because - remember - it was weak). At least you are betting on the favorite.
Or maybe you are the new bank that is going to lend the money out because the fractional banking is huge fun as well. Why not? I guess I will give it a go. Historically, I have never defaulted on a loan which means I never will (now I am standing at the printer, too).