I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.
This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.
I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.
Does anyone else plan on doing this?
I don't think this is a good idea. I think that you, speaking of a loan, do not have an interest-free loan, but a loan that must be repaid with decent interest. In your fantasizing, the possibility of returning the borrowed money is not considered at all. And this is the most important thing in your plan. Bitcoin has a high price volatility and it is very risky to take out a loan, relying on the rising price of Bitcoin, since its growth is accompanied by periodic very low and long price drops, as at the present time.
In addition, you should not expect that bitcoin or another cryptocurrency will eventually replace fiat. This will never happen.