I want to use a OneDrive folder as the location to which Time Machine backs-up my internal drive. I'm pretty sure that Time Machine can't back-up to a cloud drive that is mounted on the volume that it is backing-up because it creates a loop (that is why I would mount the cloud drive on an external drive that Time Machine is not backing-up).
If my internal drive fails then:
- get a new drive.
- do a fresh install of OS X.
- attach any external drive.
- install OneDrive and mount the OneDrive cloud drive on this external drive.
- point Time Machine at the OneDrive folder.
- tell Time Machine to restore.
I can rest safely knowing that is how it would work? Or, am I about to make a devastating mistake that leaves me with no Time Machine protection?