Bitcoin-backed loans for "living without selling" - am I the only one who thinks this is way riskier than it's being sold?

I've been looking into the idea of using Bitcoin as collateral instead of selling for a while now. Sounds brilliant at first - liquidity without a tax event, BTC stays yours, you keep benefiting from price appreciation.

But the more I dig into it, the more uncomfortable I get. Celsius and BlockFi aren't ancient history. And even with the "serious" platforms that are still around: one 50% crash and your LTV goes through the roof. Margin call, forced liquidation, everything gone.

What surprises me is how little this gets discussed in all those "never sell your Bitcoin" conversations. Obviously the lending platforms aren't eager to highlight this. But even in the community it's often presented as basically risk-free as long as you keep a low LTV.

I built a calculator to play through this over multiple years (app.retire-on-bitcoin.com if anyone wants to mess around with it themselves). The numbers are sobering when you're honest about it and don't just model the best-case scenario.

You need a really proper cushion to stay on the safe side.

Am I missing something or is this topic really as underexplored as it seems?