This is actually not entirely true depending on how your structure your spending. In particular in the United States (the context for Coinbase's employees), the basis used to compute capital gains resets when the items are inherited when you die. So if you have enough wealth to take out loans on it until you die without ever needing to liquidate the wealth, your estate and heirs (again through some sophisticated accounting) reset the capital gains basis, and then can pay off the loans with the appreciated assets and completely avoid capital gains. ProPublica did a very detailed investigation on this in mid-2021 (https://www.propublica.org/article/the-secret-irs-files-trov...)

If I have a billion in assets and need $1M/y to live, I can live 100 years and still be at a 10% Loan-Value ratio (assuming no growth!).

With some good estate planning there is probably no tax to pay ever.