Without any awareness of the irony, crypto promoters say that this validates crypto. That a crypto company borrowed dollars supposedly validates crypto.

Think about it, take as long as you need.

I have been saying for over four years that bitcoin is not suitable for borrowing. And now the crypto bellwether demonstrates that they agree!

Bitcoin is Not Suitable for Borrowing

If anyone could borrow bitcoin, surely a company who handles large quantities of it for large numbers of passionate investors would. They chose not to. As any bitcoin enthusiast can tell you, it would be foolish to borrow bitcoin as the cryptocurrency is expected to go up to many multiples of its current price. Better to borrow dollars, which are expected to fall.

To be more precise, anything that rises or falls rapidly will have volatility. This is because dramatic price action attracts speculators, who bet (with leverage) and overextend the move. Then it snaps back, and they hit their stop-loss orders, and sometimes reverse their positions.

A borrower needs stability, not drama. Bitcoin provides plenty of the latter, but not so much of the former. Bitcoin is not suitable for borrowing.

Is Bitcoin "Digital Gold?"