Binance Provides $500M Loan for Bitcoin Miners

[CryptSafe]

Binance setting a loan for Miners is not bad. Of lately, it has been bear market and Price of Bitcoin is on the decline which has affected the Miners and investors. This loan would help them get back on their feet to continue the mining and also cushion the adverse effect they already have.
Never the less, $500 million sounds enticing but this is a bear market and we all know making profit as a miner is very miniut and there's no assurance or possibility of recovering the loan within the stipulated time interval as stated by binance. What I think and suggest binance does is to extend the repayment time for the loan so that Miners can confidently go for the loan without any fear as they would have time for repayment and also be able to manage the available resources they have gotten.
No doubt this loan would help them go along way in getting more equipments needed by them and for those already packed up as a result of lacking in one way or the other, they too can be able to have access to the loan for a restart with more sophisticated equipment which will aid boasten their mining capacity and setting them for more profit when it is bull market. So I urge every miner wanting more equipments for their mining activities to make use of this opportunity binance has made available.

[Dubaian]

Bitcoin mining costs a lot of money due to which there are no coins left to mine. Binance then gives loans to bitcoin miners so that they don't have any financial problems to mine bitcoins. They know that Bitcoin mining consumes a lot of electricity and various other costs that make Bitcoin mining unprofitable. That's why Binance helps them to mine bitcoins by giving loans but later they have to pay back this loan. So Bitcoin mining takes huge amount of loan from Binance.

[franky1]

ok lets use another example of a benefit of a bitcoin collateral backed loan on a 24month hold


imagine you have 1000 asics (140thash each at 3kwh each)
(140petahash for 3mw)
using efficient electric contract of 4cent /kwh
$40 an hour for a 2 year contract is $700,800
meaning if you traditionally had to pay upfront the contract to lock in the kwh needed to run those asics for 2 years
you would normally have to sell 35+ btc upfront.. never seeing that coin again.. its gone. the electric company keeps all the fiat

however. by doing it as a loan. you instead escrow/lock that 35btc and
binance pays your electric bill with fiat

and in 24 months (loan fiat=840960with 2x10%)
if the btc market price is say:
$25k : binance owes you 1.5 coins back. meaning its made your electric even cheaper
$30k : binance owes you 7 coins back. meaning its made your electric even cheaper

yes if the btc market price stays below $24k then you owe binance more
but if the market price grows above $24k then binance gives you a refund of some coin..

however selling coin to then go to a normal fiat lender and then lock it up as a fiat collateral or make monthly payments.. you lose. so no going to a fiat lender is never a good idea. you might aswell  just pay your bill interest free, rather than using a fiat lender.

however a btc lender allowing for a collateral loan in btc has some benefit(as long as the market price grows by $5k amount in 2 years)

..
personal note.. i never take out loans. i live within my means and i am not advertising binance. but just explaining its not a 100% negative proposition for some users that afford the risks if they have done the research to understand the risk:reward potentials

i wouldnt recommend loans. but binance is offering an option thats better than a fiat establishment loan