Lending out #bitcoin for yield even if properly encumbering the asset from an accounting perspective to avoid rehypothecation, creates more sell pressure on spot price then selling what you need to raise fiat. Ignoring taxes for simplification, if you need $5mm, $5mm of #bitcoin sell pressure. If receiving 5% yield then you need to lend out $100mm. And while it takes different forms any party that borrows a financial asset is effectively selling that asset on to someone else. So $100mm of sell pressure. Even making the giant assumption that counterparty risk is not an issue & that all interest received is used to buy more #bitcoin. It would take 19yrs to offset the upfront incremental sell pressure. The more common this becomes the higher the counterparty risk goes and the slower #bitcoin price appreciation will be. In fact at the extreme it provides those with money printers the ability to manage the short to medium term price action of #bitcoin which is what drives the narrative. And since #bitcoin can't be printed when one of these systemically import banks wraps themselves around the pervervial axel, I would fully expect rules to be changed and contacts to be rewritten. Just like insurance contacts have been or buy buttons on GME have been shut off.