🎥 Watch the full video above – I break down everything you need to know about the new wave of Bitcoin-backed loans, the hidden risks behind the hype, and why this could be the setup for the next systemic failure.

Hey hey Bitcoin Wealth Builders!

Every cycle, they dress it up differently. New names. New logos. New promises. But the game? It’s the same. And right now, it’s being played again—only this time, the numbers are bigger, the stakes are higher, and the players are smarter. Or at least, they think they are.

In this blog, I want to take you deep into a conversation I had with Rob from Digital Asset News—one of the few interviewers who knows how to ask the right questions and spot the real signal in the noise. Together, we unpacked what’s really going on with the new breed of Bitcoin-backed loans, and why the lessons of Celsius, Voyager, BlockFi, FTX, and others are being ignored—or worse, repeated.

Let’s get one thing straight: I’m not against financial innovation. I’ve invested in over 100 Bitcoin companies, and I was there when this whole idea of borrowing against Bitcoin was first floated. In theory, it made sense: don’t sell your Bitcoin, avoid the taxable event, use it as collateral, and free up capital.

But in practice? It became a feeding frenzy.

What started as a sound concept turned into a Ponzi-like ecosystem of platforms promising yield they couldn’t sustain, backed by risk they couldn’t measure, and propped up by trust they hadn’t earned. I was an investor in Celsius. Like many of you, I was sold the vision. But behind the curtain was a horror show: hidden losses, undisclosed trading bets, fake yield entries in databases, and a house of cards built on lies. Billions were lost. Lives were wrecked. And now? They're repackaging the same playbook.

At the Bitcoin conference, it was all the rage again. Bitcoin loans. Attractive yields. Flashy booths. Familiar pitch. But if you scratch the surface, you’ll find the cracks: 12%+ APRs, vague rehypothecation terms, rushed legal updates, and custodial black boxes with minimal transparency.

It doesn’t mean they’re all bad actors. But the system they’re rebuilding is once again vulnerable to the same cascading risk. Because here’s the part nobody wants to say out loud:

Bitcoin is the prize. And Wall Street wants it.

Whether it’s stablecoins backed by volatile treasuries, or ETFs built for institutional front-running, or lending platforms that pass your Bitcoin up the chain to banks, hedge funds, and ultimately the Federal Reserve—this is the same game of control, played at a higher level.

Let me say this clearly: these platforms don’t need to be corrupt to lose your Bitcoin. The right combination of volatility, margin calls, de-pegged assets, or sudden bankruptcies—and your stack is gone. You don’t need fraud when you have fragility. And most people aren’t managing that risk.

If you take out a loan against your Bitcoin, you better know what you’re doing. And more importantly, you better be willing to lose what you’re leveraging.

That’s why I tell people: if you don’t absolutely need to take the risk, don’t. If you’re not willing to lose the Bitcoin you’re using as collateral, then don’t play the game. And if you think you can outsmart the cycle—just remember what happened last time.

Some people leveraged 100% of their Bitcoin, borrowed against it, bought more, borrowed again. They ended up with nothing but a dollar claim in bankruptcy court while Bitcoin ran off without them. The smarter ones? They did less. And they ended up with more.

There’s this strange obsession with complexity in our industry—yield farming, staking derivatives, synthetic Bitcoin exposure through stocks or ETFs. But the truth remains unchanged: if you’d just bought Bitcoin and held it in self-custody, month after month, you’d be in a better place than 90% of traders, speculators, or leveraged gamblers.

Bitcoin doesn’t need bells and whistles. It needs your conviction. Your discipline. Your sovereignty.

So yes, I want you to be informed. But I also want you to be safe. Because if this next wave of lending goes sideways again—and there are already signs it could—those who stayed simple, stayed humble, and stayed sovereign will be the ones who thrive.

Watch the full video. Share it with anyone considering these loans. And remember: you don’t have to outsmart the system. You just have to opt out.

Hold your own keys. Exit the trap before it’s too late.

Peace. Love. Unity. Bitcoin.

— Simon Dixon

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Disclaimer:

This blog and the accompanying video feature a conversation between Simon Dixon and Rob from Digital Asset News. The content is provided for informational and educational purposes only and does not constitute financial, legal, tax, or investment advice.

The views expressed by Simon Dixon are personal opinions and do not necessarily reflect those of Rob, Digital Asset News, or any platform, company, or institution mentioned during the discussion. References to companies such as Celsius, BlockFi, and others are made strictly for context and commentary. They do not represent endorsements or legal conclusions about the entities involved.

The discussion includes opinions on the risks of Bitcoin-backed loans, self-custody, and broader crypto lending practices. Viewers and readers should perform their own due diligence and consult with professional advisors before making any financial decisions.

This content was created with the assistance of AI tools to support structure and clarity. All editorial responsibility and final viewpoints remain with Simon Dixon.