That means taking a loan against BTC collateral is a function equivalent of a shot and buying more BTC with that making the whole trade an inverse short, aka long against your trading pair - by default USD. You're still trapped with the USD dependency.
Not quite sure what you're getting at here.
USD as a measurement (unit of account) is not really a dependency.
It is simply convenient as the world's most stable UoA.
If it was no longer stable it would be abandoned quickly, thus not necessary.
I'm not sure how one can be "trapped" by an asset they're shorting,
as the entire point of shorting that asset is to bet against it.
It's a mental exercise, I'm following your words and around and that was a hypothesis that hit me spontaneous.
As long as your UoA is dropping 3-4% annually, it's not great. Do we have anything more stable right now on this planet?
The amount that it drops per year has little to do with the volatility or stability of the asset. If the loss is a gradual 3% grade that slopes down in a straight line that's a perfectly stable outcome as far as UoA is concerned. Whereas if it's up 5% one day and down 10% the next day with an average of 3% down that's a completely different scenario.
If I can pick an asset at random and attach a price to it: like $10 for 5 pounds of apples ($2/pound), and you can tell me if that's a good price or a bad price, then UoA is working. If not then not.
That's a great way to put it.