[edited out]
Yes, I probably deviated a little from the topic when I started writing about mining.
But this was done rather with the hope that before borrowing, a person will study the crypt better, at least understand the basic principles.
Studying mining or business opportunities in bitcoin or anything like that is not necessary in order to attempt to assess whether taking a loan might be beneficial or not.
Surely, there is likely a difference between someone who has no clues about bitcoin, and has not even bought any bitcoin to be then considering to add leverage (such as a loan) versus someone who may have already been into bitcoin for a while and established a decent sized holding of bitcoin.
The same is true if someone has already established several investments outside of bitcoin, such as a house, a 401k, and some other investments, versus someone starting from scratch in bitcoin. Having already existing assets allows the drawing from various assets and the moving around of risk.
Also, having various cashflow levels can make a difference as well, and having an already strong and consistent cashflow can help to make it easier to justify getting a loan.. but still might not justify getting the loan in and of itself....
So there are a lot of ways that finances can be organize and assure for paying the loan back without even having to consider entering into any kind of extra business such as bitcoin mining or even having to weight the additional plusses and minuses of mining bitcoin, even if you personally believe that is the way to go, your own narrow focus on that angle might show that you either do not adequately understand other ways of thinking about ways that loans can be profitable without having to have that extra layer of complexity that you consider to have more positives than negatives. By the way, think about it.. you have an interest in mining and you might even have technical interests and even business oriented interests. Not everyone shares those kinds of interests but they are not necessarily going to be disadvantaged in terms of still getting into a loan if it might otherwise be something that they believe works for their own personal situation - considering cashflow, other assets investments and skills - amongst other possible considerations that they might believe to be helpful to them.
If you look at the question of borrowing to buy BTC or not, the key to answer for that question - at what interest will borrowed?
Yes.. that is one of the considerations.
If inflation is above interest on the loan, then the move is risky, but logical.
If the loan interest is much higher than inflation, then you should take it with caution.
In any case, it is better to do a study for yourself at what stage of the market we are (bulls or bears) and what to do if the bear market comes suddenly and for a long time?
How you will repay the loan in that case?
yes.. all of those are important considerations..
It is clear that when everything grows, as in a good bull market, it is much easier to pay interest and debt.
Yes, a bull market cannot be presumed, even though it would be better to consider that the odds are higher to have price appreciation rather than not.
I already mentioned the example of getting a two-year loan with a 6% interests, so if the BTC are bought at $39k with such loan, then at the end of the loan period, the BTC should need to be worth at least $44.5k just to break even.... so yes, the loan could end up being profitable or not by that time.. and there need not be a guarantee in order to still justify taking the loan, but the break even price should be considered as part of the calculation whether or not to get the loan.