That only works if the loan snapshots the BTC price at the time of the loan. In the case of the most naive lender in the world who does this, you will be bitte

That only works if the loan snapshots the BTC price at the time of the loan. In the case of the most naive lender in the world who does this, you will be bitten by their incompetence in some other unrelated way almost immediately. In the case of any competent lender who knows anything about Bitcoin, they would go "way too liquid" and "haha nope". </uninformed_commonsense_guess>