Once an asset can be used as collateral for a loan, its value will increase because it has "financing capability", which may be more accurately explained by "capital efficiency improvement" and "financial multiplier effect" Too long without looking at the version When an asset can be used as collateral for a loan, its financial attributes are significantly enhanced, transforming it from a "dead asset" to a "living capital", which improves its capital efficiency, valuation premium, and overall market demand. ⸻——————————————— 📈 Why does it bring value enhancement? ✅ 1. Increase the "capital efficiency" of assets Originally, you held BTC and could only wait for it to rise; Now you can mortgage cash to continue investing, and the assets have the ability to be 'reused'; The same $1 BTC can generate more financial activities (loans, leverage, returns) and improve capital efficiency. ➡️ Analogous to real estate mortgage and government bond re pledge: an asset can be "used multiple times" and its value is naturally higher. ⸻——————————————— ✅ 2. Introduce leverage+release liquidity The essence of financial markets is credit expansion; Collateral means that loans can be issued → funds flow into the asset market → driving up prices; The more people are willing to hold it, the larger the total market size. ⸻——————————————— ✅ 3. From the perspective of financial theory 📚 Tobin's Q Theory Market value of assets vs. reconstruction cost; Assets that can bring additional uses (such as mortgage loans), with market value>actual cost → higher Q value → more attractive to capital. 📚 Liquidity Premium (Liquidity Premium Theory) Longstaff (1995): Mortgagable and loanable assets have higher "financing convenience" → higher premiums. 📚 Money Multiplier Theory The essence of the mortgage loan system is to create currency - an asset used for mortgage loans can be "amplified" into multiple units of fund flow in the system; In the banking system, high-quality collateral typically drives credit expansion by 1.5 to 3 times. ⸻——————————————— ❓ Is it really 'doubling'? Expanding the market cap by nearly twice is not wrong, but specific scenarios need to be analyzed: If the mortgage rate is 50% and the funds after the loan are used to buy the same asset, it may trigger an accelerated upward cycle in price; Without selling pressure, the market demand/price of BTC may increase by 1.5 to 2.5 times due to the use of leverage, which is known as the "market cap" increase. ⚠️ But please note: This is not linear; Risk events (liquidation, stampede) can also amplify the downward trend; So this is not about "doubling safety", but about "improving capital efficiency and amplifying market volatility". ⸻——————————————— After an asset can be used as collateral, its "static value" remains unchanged, but its "dynamic use" becomes stronger, thereby increasing the overall demand and valuation of the financial system for it.