let’s say you strongly believe that your collateral whith which you are borrowing will raise significantly in next months, let’s say you bet ETH will raise this year and double.
so you borrow ETH and it’s value double this year 2021, isn’t it a bad idea if you spent ETH in playing in other protocols?, now you have to give back double than you get, plus interest of course. So it would have be better to borrow DAI.
so it’s a good idea instead to borrow ETH when this one start to fall after getting to the ATH of this supposed bull market, then if you get it at ATH and transform it into DAI, if ETH is divided by 2 you will have to whithdraw half of what you get.
All the difficulty is to hit the correct flow of ETH.
Do you think is worthit to think like that or it’s almost imposible to predict the future?
Do you think it’s just better to borrow in DAI and so you are not worried about the direction of the token you borrowed?
Thanks and keep learning evbdy.