I don't see anything wrong with this if you find any money lending bank that will grant you the loan, I think this depends on the duration of the loan, it will be fine if anything above 4 -10+ years for repayment period and during a zero or low interest rate period, but now the interest rate are on the high side for one to borrow.
However, it could be a wise decision in the end. Michael Saylor sometime did borrow money to buy Bitcoin during the zero interest rate period before the last bull market, and I guess he must have paid off the loan because after that Bitcoin had that moon shot to 69k.
But where I'm worried is the condition of the loan using Bitcoin as collateral , tell me are you gonna transfer the Bitcoin to them or what?
4 to 10 years is too good to be true. On many lending companies that I inquire, their terms are only short. They need the money as soon as possible so that they can accommodate other loaners. The interest rate for them is also high and I think there is no such thing as zero interest rate because how can they earn that way? And what I know is that interest rate depends on the longevity of the loan.
The longer you pay it, the higher the interest you're going to pay but yes we need to transfer our collateral to the lender. This sounds risky but this is only for the protection of the lender. What if the loaner won't pay the money that they borrow?
