What do you think about spending with BTC as collateral instead of selling?

Been thinking about this for a while and curious what this sub thinks.

The idea is simple: instead of selling BTC every time you need to spend, you borrow against it. Your BTC stays in your wallet. You spend the borrowed stablecoins via a card. You repay your debt whenever you want. No tax event from borrowing to spend, you keep your exposure, and if BTC returns more than the 5-7% borrow rate (which historically it has), you come out ahead.

This idea has been built by Liquid Banking app, obviously there's liquidation risk if BTC dumps hard enough but for long-term holders with a meaningful stack, the math seems better than selling and paying capital gains tax every time you want to buy groceries.

Is anyone else doing something similar?